By Alex R. Thiersch, JD, CEO of the American Med Spa Association (AmSpa)
Increasing medical spa retail product sales is a fast way to boost the profitability of your medical aesthetic practice. According to the AmSpa 2017 Medical Spa State of the Industry Report, retail products account for 18% of total revenue at the average medical spa. So if you want to make this a larger part of your business, where do you start?
A Perfect Fit
When choosing products, you need to make sure that they not only fit in with the brand direction of your business, but also match the services you offer, since a skin care program can produce good treatment results for your patients. You don’t necessarily need to stop at treatment products, however—a few on-brand retail pieces that don’t require a prescription to buy can help create a fuller experience for your customers. If you fancy yourself a luxury brand or a wellness brand, you should consider dedicating some shelf space to items that reinforce this message.
Too Much Choice
It’s good to have a selection of products in your medical spa, but offering too many options at the same level of treatment can be a detriment. Too many similar choices can leave customers confused and less likely to purchase anything. Selecting a few lines that each have multiple levels of treatment will likely serve you better.
“While selection is important, sometimes it is better to go an inch wide and a mile deep,” said medical spa industry expert Bryan Durocher of Durocher Enterprises.
The Sense in It
Engaging customers through multiple senses can benefit retail sales. Visually interesting displays combined with calming music or scents that match some of your products provide subtle boosts for retail sales.
You also can alter the layout of your space. Do you keep the majority of your products behind a counter or in a locked case? This will impact your sales, since customers like to look at and hold products as they consider buying them. Does your retail area overlap with your waiting room? Think about separating them—“People that sit don’t shop,” Durocher said.
Teamwork Makes the Dream Work
Of all the possible points of improvement in retail sales, training your team will give you the biggest benefit, bar none. “How can you expect to improve performance and achieve new results if the team is not held accountable for their actions or performance?” said Dori Soukup of InSPAration Management.
Soukup suggests implementing concrete expectations, measurable goals, sales systems and team coaching when attempting to set up a business for retail success.
“Have a defined client experience that incorporates retail products during the consultation, during service and at the close of the visit,” Durocher said.
It’s also important to offer your team incentives. In most states, you generally cannot pay staff commission for services in a medical spa because of fee-splitting laws, you generally are allowed to pay percent commission on retail product sales.
Selling retail products is a key to increased profitability in medical spas, and if you’re looking to enter the industry, it’s a core principle you should be familiar with.
For more information on ways to build and run a successful, profitable and legally compliant medical spa, attend one of AmSpa’s Medical Spa & Aesthetic Boot Camps and learn how to become the next med spa success story.