Understanding Your MedSpa Profit Margins: A Tool to Strengthen Your Business
At Morem & Waller CPAs, we’ve spent years helping businesses in highly regulated industries take control of their financial future. As our firm evolves, so has our focus. While we remain deeply committed to the cannabis industry, we’ve expanded our understanding and services into the broader wellness space. That includes medspas, salons, gyms, and wellness product companies. We see these industries as interconnected and full of opportunity for shared financial knowledge, strong leadership, and thoughtful growth.
That vision is grounded in lived experience. Betsy Morem, CPA and Co-Founder of Morem & Waller, is also the owner of a medspa in Austin, Minnesota. She’s walked in the shoes of many medspa owners and knows just how challenging it can be to manage the demands of service delivery, staff, equipment payments, and marketing while trying to stay profitable. That’s exactly why she developed a simple but powerful tool to help other owners gain clarity on their numbers.
Why Understanding Profit Margins Matters
Not all services are created equal. Just because something brings in the most revenue does not mean it brings in the most profit. When you take into account provider commissions, hourly wages, cost of consumables, and time spent per service, you may find that some of your most popular offerings are barely breaking even.
Understanding your profit margin by service can:
- Help you price your services appropriately
- Show you where to focus your marketing and promotional efforts
- Give you clarity on whether a new service is worth bringing into your business
- Ensure you’re building a business with a healthy bottom line, not just top-line revenue
Introducing the MedSpa Profit Margin Calculator, designed to help you understand the financial reality behind each of your services.
What the Profit Margin Calculator Does
| This tool is built for medspa owners and their teams. It breaks down: – Retail price of each service – Time it takes to perform – Cost of consumables used during the service – Commission or hourly pay to the provider | From there, it automatically calculates your total cost, total profit, and profit margin for each service. It’s simple, visual, and easy to use. You’ll be able to: – Compare which services are most profitable – Determine how much flexibility you have when offering a promotion – Better understand what your staff should focus on to benefit both the provider and the business |
“A medspa might bring in $800 on a filler service but keep less than a third of that after paying for the product, compensating the provider, and covering supply costs. Meanwhile, a lower-priced skin treatment might actually generate more profit in the same amount of time. Once you know the numbers, you start making smarter business decisions.”
Betsy Morem, CPA and Co-Founder of Morem & Waller
What This Means for Your Business
This tool is a starting point, but it’s more than a spreadsheet. It’s a first step toward building financial confidence as a medspa owner. And as your business grows, Morem & Waller CPAs is here to support you at every stage.
We work with medspa owners across the country to provide:
- Fractional CFO Services – strategic financial leadership to help you plan, forecast, and grow with intention
- 5 Year Financial Forecasts – detailed financial roadmaps that help you plan for expansion, equipment purchases, and staffing
- Bookkeeping and Payroll Services – accurate, ongoing support so your day-to-day operations stay on track
- Tax Preparation and Planning – helping you navigate tax season confidently while staying compliant and maximizing savings
We believe medspa owners deserve the same level of strategic financial support that high-growth startups or large corporations get. Whether you’re just getting started or scaling up, we’re here to help you build a financially sound business.
Spa owners are often surprised with this profit margin calculator exercise. What they think they may be making money on, is actually not that profitable. Read our article: Optimizing Compensation in the MedSpa Industry: The 20% Rule
Ready to See What’s Behind Your Numbers?
Download the MedSpa Profit Margin Calculator and start gaining the clarity you’ve been looking for. Understanding where your business is profitable, and where it is not, is one of the smartest decisions you can make.
