Financial Management Best Practices for Medical Spas to Control Skincare Inventory

Dear Dangerously in Love with Finance,

I own a medical spa here in Massachusetts, and lately I’ve been frustrated with how much money is tied up in our inventory, especially skincare products. When we first launched retail, I stocked every new line that came recommended, thinking variety would boost sales. A year later, I’ve got shelves full of products that barely move.

Every time I walk into my storage room, I see dollar signs collecting dust. The popular items sell out fast, but the rest just sit there, slowly expiring. My team tries to promote them, but clients aren’t buying. I feel like I’m bleeding cash on inventory that doesn’t serve my business.

How do I get control of this without shortchanging clients on choice? What strategies can help me manage skincare inventory better so I’m not wasting money on products that don’t move?

—Overstocked in Massachusetts

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Dear Overstocked,

You’ve hit on one of the quietest yet most expensive challenges in running a medical spa: inventory control. I see this issue with med spa owners again and again. Inventory isn’t just about having a “full shelf.” It’s about protecting your cash flow, profitability, and financial health.

Think of it this way: every serum or cream sitting in your back room is working capital trapped in a bottle. Those dollars can’t pay staff, fund marketing, or cover new equipment. When inventory sits too long, it’s not just wasted space—it’s wasted opportunity.

Why Inventory Can Sink a Spa’s Finances

Medical spa owners often underestimate the impact of poor inventory management. Here’s what happens when products don’t move:

This is why financial management for medical spas must look beyond treatment revenue. Retail is either a profit center—or a drain.

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Step 1: Identify Your Best Sellers

The biggest mistake I see is assuming variety equals sales. In reality, a small set of core products drives most revenue. This is the 80/20 rule in action—20% of products generate 80% of sales.

Pull your sales data and ask:

• Which products sold consistently in the last 6–12 months?
• Which ones lagged or never took off?
• How much cash is locked in slow movers?

Once you know your best sellers, scale back on the rest. Fewer SKUs = tighter control, less waste, and more profit.

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Step 2: Track Inventory Turnover

This is where bookkeeping and accounting for medical spas becomes more than compliance—it’s insight. One number to watch: inventory turnover rate.

Here’s how to measure it:

1. Take the cost of goods sold (COGS) for retail products over a set time (say, 12 months).
2. Divide by the average inventory held during that period.

The result tells you how many times you sold through inventory in a year. A low turnover rate means products are sitting too long, costing you money. As a rule of thumb, if something hasn’t moved in 60–90 days, it doesn’t belong in your spa.

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Step 3: Move Dead Stock Strategically

Getting rid of slow movers doesn’t always mean deep discounts. Be creative:

This way, you recover cash without destroying margins.

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Step 4: Negotiate with Vendors

Vendors often push large minimum orders, but you have more leverage than you think. Smart negotiation is a form of CFO-level financial management.

Ask for:

Vendors want long-term relationships. If you show them how smaller orders help you succeed, they’ll often work with you.

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Step 5: Build Financial Systems That Work for You

At the end of the day, inventory management is a system problem.

When your point-of-sale system talks to your accounting system, you’ll see:

That’s the difference between just keeping the lights on and building a truly profitable medical spa.

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Letting Go of “Pretty Shelves”

Full shelves look professional. They make your spa feel polished. But success in this industry isn’t about appearances. It’s about healthy numbers.

Letting go of underperforming products is a smart financial decision that protects your spa’s future.

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🍃 Mindful Thoughts

Overstocked, you’re right to be concerned. Wasted inventory = wasted money. But the fix is within reach:

• Cut down to your core product line.
• Track turnover like a CFO.
• Move dead stock with creativity.
• Negotiate smarter vendor terms.
• Use accounting for medical spas as a decision-making tool, not just compliance.

And if you feel overwhelmed? That’s when a fractional CFO for medical spas can give you the clarity and control you need.

When you stop letting inventory control you and start controlling it with systems, you’ll see the difference. Your shelves will still look polished. But more importantly, your bottom line will look healthy.

Lots of Love, Coffee and Chocolate,
Dangerously in Love with Finance and the HBoF Family

If you’re ready to bring your inventory under control, cut waste, and reclaim profits without feeling overwhelmed, Healthy Bodies of Finance can create a system that fits your spa, your team, and your life. Our full suite of services, including fractional CFO support for med spas, financial consulting for med spas, and spa business financial planning, makes managing your finances easier and more strategic. Book a consultation for your med spa finances today and take the first step toward clarity and control.

https://tr.ee/hbofcall

This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at info@healthybodiesoffinance.com