If you’re a med spa owner, you probably know that not all services make the same amount of money. But have you ever taken the time to calculate exactly which treatments are the most profitable for your business?

Understanding profitability by service is about knowing your true margins so you can make smart decisions about pricing, promotions, and even which services to market more aggressively.

Why Service Profitability Matters

Your menu may be full of great treatments, but if some services barely break even, they might be quietly eating away at your overall profits. By identifying your highest-margin treatments, you can:

• Focus marketing on services that bring in the most revenue per hour.
• Price services more strategically.
• Decide which promotions are worth running (and which to skip).
• Plan training and staffing around the treatments that truly drive your bottom line.

The 3 Key Components of Profitability

We consider three main factors when breaking down profitability of services:

1. Revenue generated from your service – This is the starting point: how much you’re charging before any discounts.

2. Discounts applied – Any promotions, memberships, or package pricing that reduce your sales price.

3. Cost of the service to the practice – The direct expenses for providing that service, such as product cost, supplies, or consumables.

Payroll and overhead are important too, but for the purpose of this calculation, we’re just looking at the service’s gross profitability before those costs.

Example: Calculating the Profitability of Botox

Let’s say you sell 20 units of Botox at $14 per unit.

Step 1: Calculate Gross Sale

20 units × $14 per unit = $280

Step 2: Subtract Discounts

If you offered a 5% discount:

$280 × 5% = $14 discount

$280 − $14 = $266 Net Sale

Step 3: Subtract the Cost to the Practice

If your cost per unit is $5:

$5 × 20 units = $100 total cost

$266 − $100 = $166 Profit

Step 4: Calculate Profit Margin

$166 ÷ $280 = 59% Profit Margin

What’s a Good Profit Margin for Med Spa Services?

At Maven, we recommend aiming for a 60–70% profit margin, considering supplies and consumables only (not payroll)..

Your service mix plays a big role here. Neuromodulators like Botox often have lower margins, while certain laser treatments can be more profitable due to their minimal consumable costs. (Of course, not considering the original purchase price of the laser equipment.)

You should also consider memberships, loyalty programs, and other discounts—they can be great for client retention, but they also chip away at margins if not monitored closely.

How to Use This Information in Your Business

Once you start calculating profitability for each service, you can:

• Identify underperforming treatments and adjust pricing.
• Shift marketing spend toward higher-margin services.
• Adjust discount structures so you’re not giving away too much profit.

Remember—sometimes a lower-margin service is still worth offering if it drives client traffic or leads to upsells for more profitable treatments. The key is making those decisions intentionally, based on data—not guesswork.

If you’d like help calculating your med spa’s service profitability or want strategies to improve your margins, email us at hello@mavenfp.com to schedule a free call.

Book a Free Profitability Assessment