With more & more people warming up to the idea of non-surgical cosmetic treatments, Med Spas are gaining insane popularity.
“How Much Do Med Spa Owners Make?” must be a burning question in your head if you are familiar with this concept.
And if not, then here’s a comprehensive guide for you that covers the profit, investment, future potential, and other details pertaining to opening a med spa business.
What is Med Spa?
Medical Spas or Med Spas seek to offer nonsurgical procedures that are done with the experience of a day spa.
Some common treatments offered at Med Spas are injectable dermal fillers, laser hair removal, tattoo removal, microdermabrasion, nonsurgical fat reduction, laser skin resurfacing, etc.
Other core treatments can include microdermabrasion (a cosmetic skin care procedure), medical facials, mild chemical peels, photorejuvenation, etc.
Every med spa is different and may offer more or less services. And since med spas procedures demand high regulatory standards; ideally, only licensed physicians can own and operate med spas.
Med Spa Trends & Statistics
- Women make up the majority of med spa patients, at 88%.
- 52% of females in the age bracket of 35 – 54 years take med spas.
- Each month, med spas receive 283 non-surgical aesthetic patients.
- In 2022, 63% of medical spas are owned by non-surgeons and non-physicians.
- The majority of med spas (at 66%) are small businesses.
- The medical spa business is a $15 billion industry.
How Much Does It Cost To Start a Med Spa?
The cost to start a med spa can vary depending on the size and location of your facility, the number of services you offer, etc.
However, on the lower end, the start-up cost to open a med spa can range from $18,000 to $35,000. Some physicians even report that the cost of building a med spa can reach up to $700,000 to $1,000,000.
As you can see, med spas can be expensive to start, and this is because med spas are quite different from day spas and require you to hire licensed professionals, buy or rent out expensive equipment, etc.
Here’s a breakdown of the expenses for opening a med spa:
| Type of expense | Average cost |
|---|---|
| Business license | $62 |
| Business formation fees | $50 to $500 |
| Certifications and licenses | $700 |
| Lawyer’s fees | $1,500 |
| Small business insurance | $500 to $2,000 |
| Domain name for website | $12 to $200 |
| Website builder | $500 |
| Web designer’s fees | $6,000 |
| Constructing a 2,500 sq. ft. building cost | $225k to $325k |
| Or rent | $1,000 to $80,000 (depending on location) |
| Furniture and equipment | $30 per square foot |
| Signage | $75 and $2,486 |
| Social media advertising | $30 to $50 a day per |
| Employee training cost | $1,111 per employee |
| Employee salary | $10 to $35 an hour per employee |
| Miscellaneous expenses | $500 |
| Stock for treatment rooms | $5,000 to $10,000 |
| Mailing & printing expenses | $300 |
| TOTAL | $18,000 – $1,000,000 |
How Much Do Med Spa Owners Make?
In recent years, there has been a constant increase in the number of med spas across the United States. Medical aesthetics has become a $15 billion industry employing 70,000 people, and as of 2022, there were 8,841 medical spas from 7,430 in 2021.
The impressive rising numbers are indicators that it might be a good time to start a med spa, and as such, you must be wondering how much do med spa owners make.
According to the American Medical Spa Association, a single-location medical spa generates $121,632 in monthly revenue. And the average annual revenue for a Med Spa owner is $1,982,896 as of 2023.
In the year 2021, the annual revenue figure was $1,722,551, and in 2018 it was $1,526,382.
Average Med Spa Revenue Per Visit
Another thing that you might be interested to learn is how much a client spends each time he/she comes to visit your clinic.
Some clients come in for a list of procedures, while some may be there for a quick little boost.
According to International Spa Association, the average revenue per visit for a med spa is $97.50. This number is the average of both low-spending and high-spending clients.
Profit Margin of Med Spa Business
To make the best out of any business, you must come up with a solid business plan and cut down on any additional expenses.
All those who are hoping to start their own med spa or those who are not able to take home enough profit might be interested to find out the profit margin of med spas.
According to the American Medical Spa Association, Medical spa owners enjoy a profit margin of 20-25%. This means the average medical spa owners make a net profit in the range of $300,000 – $375,000 after deducting all the expenses.
How To Start a Med Spa Business?
Pros & Cons of Medical Spa Business
Pros of of Medical Spa Business
- High customer retention rates
- Unlimited income potential
- You can decide who you work with
- Very profitable
Cons of Medical Spa Business
- Stressful work
- High liability
- High start-up cost
Why Med Spas So Profitable?
Here are the two biggest reasons why med spas are so profitable:
Growing Interest
Because beauty and cosmetic procedures have become so accessible, more and more people are inclined towards taking advantage of these services.
Social media is another reason why a lot of people are getting influenced to get non-cosmetic procedures done.
Non-Invasive Cosmetic Treatments
Complex treatments like dermal fillers, body contouring, fat reduction, hair removal, etc., can now be done without performing the surgical processes.
This helps the person save a lot of time, money and also saves them from a lot of pain. As such, med spas are in high demand and profitable.
tips to Save Cost of Running A Med Spa
You must take all the necessary measures to maximize profits for your med spa business. Some tips that can help are:
- Rent equipment: Small med spa owners can benefit from renting equipment rather than buying it outright. By renting out different equipment, you can try out different procedures and figure out if you want to buy any of the equipment for permanent use.
- Hire contract workers: You can hire contract workers instead of hiring full-time employees. By hiring contract workers, you can enjoy more flexible wages, and unlike your full-time employees, you will not have to pay them standard hourly wages.
- Try out online med spa service: Starting a med spa center in a brick-and-mortar location will cost you a lot. To cut down on this cost, you can offer med spa services online.
Wrap Up
Medical Spa is a great business opportunity in 2023, with business owners making as much as $1 million in revenue. Most states, however, allow only licensed physicians to open this business.
In this guide on How Much Do Med Spa Owners Make, we gave you a complete overview of this business, including the investment, profit margin, pros and cons, etc. We hope this was useful to you. If you are looking for a profitable med spa franchise, then you must know the 10 best spa franchises.
FAQs
Which state has the most number of med spas?
With 2,884 businesses, California has the most number of med spas, followed by New York with 2,491 businesses and Florida with 2,203 businesses.
What is the future of med spa industry?
The med spa industry is expected to grow by a CAGR of 14.6% and is expected to reach USD 63.79 Billion by 2032.
Can anyone open a med spa?
A med spa is a medical practice, and who can open a med spa depends upon each state’s medical board.
Different states have different regulations, and the requirement varies.
Throughout the US, it is common for MDs, DOs, NPs, and PAs to open a Med Spa.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.