Understanding Fixed Expenses: How to Keep Your MedSpa Profitable

Running a profitable medspa isn’t just about offering amazing treatments — it’s about managing your numbers with precision. One of the most overlooked areas that can make or hinder your profitability is your fixed expenses.

Whether you are just starting out or scaling to multiple locations, understanding and controlling your fixed costs will determine how quickly your business grows and how much income you get to keep.

In this guide, we’ll cover what fixed expenses are, what healthy benchmarks look like, and how to manage big-ticket items like rent, marketing, and administrative costs — all while boosting your medspa’s bottom line.

What Are Fixed Expenses?

Fixed expenses are the costs that stay the same every month, regardless of how many clients you serve. Common examples include:

• Rent or mortgage
• Software subscriptions (EHR, booking systems, marketing tools)
• IT & Phone systems
• Accounting, bookkeeping, & payroll services
• Insurance & legal fees

Unlike variable costs — such as injectables or consumables that increase with each treatment — fixed expenses stay consistent, which means they can quietly eat into profits if left unchecked.

Benchmark: For most profitable medspas, fixed expenses should represent no more than 20% of total revenue, with established practices often closer to 14–17%.

Rent: The Largest Fixed Expense for Most MedSpas

Rent is usually your single biggest fixed cost — and the one with the most strategic opportunity.

Depending on your location, rent typically runs 3–6% of total revenue. In high-end or premium markets, that number can creep up to 7–8%, but that doesn’t necessarily mean it’s a bad deal. High-traffic, visible locations can justify higher rent if they significantly increase patient flow and brand visibility.

Questions to ask yourself:

• Are all treatment rooms being utilized efficiently?
• Can your providers increase patient throughput to offset rent costs?
• Does your space support your brand image and growth goals?

Pro Tip: Subleasing unused rooms may seem like an easy win, but it often introduces liability, brand control, and patient experience issues. Instead, consider bringing on another provider or service line to generate more in-house revenue from the same space.

Marketing: Spend Strategically, Not Emotionally

Marketing is a fixed expense that often fluctuates — but it should still be managed with the same discipline.

Many medspa owners overspend on marketing without clear tracking or accountability. Every dollar should be tied to measurable ROI.

Ask your marketing agency or in-house team to break down:

• Where your leads are coming from (SEO, paid ads, referrals, or social media)
• How much it costs to acquire a new patient
• How much revenue each marketing channel generates

If they can’t show you these metrics, it’s time to tighten up your strategy.

Benchmark: Marketing costs should generally stay around 3–5% of total revenue, though this can vary depending on growth stage and goals. Newer practices can easily spend 10–20% (or more) their first year on marketing, though more established practices are typically closer to the 3–4% mark.

Some medspa owners expect their injectors or aestheticians to “build their own book of business,” but remember — the business should own the brand, reputation, and marketing content. If you want your team to promote services or post online, make sure that effort is built into their incentive structure or KPIs.

Accounting, Admin, & Software Costs

Don’t overlook your back office — it’s a crucial part of financial health.

Bookkeeping, payroll, and accounting are all fixed expenses that provide structure and insight. For most medspas:

• Basic bookkeeping costs about $500–$1,000 per month depending on scope of work.
• More complex, multi-location setups can run higher but offer valuable financial insights.

The key is to pay for insight, not just data entry. Your accountant should help you interpret numbers, identify trends, and guide decision-making — not just reconcile transactions.

Also, review your software stack at least annually. Many medspas find themselves paying for overlapping tools or unused subscriptions that can quietly drain thousands of dollars per year.

5 Key Takeaways for Managing MedSpa Fixed Expenses

1. Keep fixed expenses at (or preferably below) 20% of Total Income.
2. Optimize Rent through better space utilization, not risky subleases.
3. Track marketing ROI — every dollar should produce measurable results.
4. Own your brand and incentivize your team strategically.
5. Review expenses quarterly as revenue grows to maintain healthy margins.

Final Thoughts: Efficiency Drives Profitability

Managing fixed expenses isn’t about cutting corners — it’s about building efficiency and scalability into your business model.

When you keep these costs in check, improve utilization, and invest in high-ROI marketing, your profitability follows naturally.

Ready to optimize your fixed expenses and unlock more cash flow?
Contact Maven Financial Partners today to set your medspa up for sustainable growth and long-term success.