Understanding ROI in Esthetic Treatments

      We want your practice to thrive! Of course there are a lot of factors that go into growing your practice. That includes stellar customer service, marketing that genuinely speaks to your customers, and of course treatments that delight your clientele. But for this blog we’re going to focus on one of the most essential growth factors for your business – the return on investment (ROI) of your treatments.

ROI should be at the core of your decision making process when you’re thinking about what treatments to offer, and that means understanding how profit margins, consumable costs, repeatability, and market demand come together to shape profitability. We’ll take each of those four factors in turn.

1. Profit Margins: The Foundation of ROI

Definition: The percentage of revenue that remains after deducting costs like labor, consumables, and equipment wear.

High-margin services such as laser hair removal and oxygen facials deliver faster ROI. According to industry reports, top-performing med spas achieve net margins of up to 35–40%, with most averaging 20–25% (yocale.com).
Key Insight: The higher the margin, the fewer treatments needed to turn a profit — margin analysis is essential to your financial success.

2. Consumable Pricing: A Hidden Cost Lever

Definition: The per-treatment cost of disposable items like masks, serums, or tips.

Services with low consumable expenses and strong markups—like hydrodermabrasion—offer more financial flexibility. However, if consumable costs aren’t closely tracked, they can quietly diminish your bottom line.
Key Insight: Even high-ticket services can underperform if their supply costs aren’t carefully managed.

3. Repeatability: Lifetime Value Multiplier

Definition: The number of times a client returns for the same treatment.

Services with regular intervals, such as monthly facials or multi-session laser plans, build dependable income and boost Client Lifetime Value (CLV). By contrast, single-use treatments should be bundled or upsold if you want to maintain momentum.
Key Insight: Consistent repeat visits amplify ROI far more than one-time procedures.

 

4. Market Demand: The Growth Engine

Definition: The volume of clients actively searching—and willing to pay—for a specific treatment.

Highly sought-after services, including microneedling and non-invasive body contouring, help keep schedules full and revenue flowing. The global microneedling market alone is expected to exceed $1 billion by 2028, growing at nearly 8% annually (grandviewresearch.com).
Key Insight: Even the most profitable treatment can’t contribute to ROI if it sits idle on your menu. Do your research and know what your clients want.

 

How the 4 Key ROI Drivers Work Together

 

Comparing Treatment ROI Profiles

Now that we have a framework for thinking about treatment ROI, let’s look at some common treatments and their potential ROI.

Hydrodermabrasion
Avg Price: $225 | Consumables: ~$50 | Repeatable: Monthly | Demand: High
This treatment has a strong ROI when volume is sustained. Given the demand for Hydrodermabrasion right now, you have a good opportunity to sustain that volume.

CO₂ Laser Resurfacing
Avg Price: $2500+ | Consumables: ~$100 | Repeatable: Occasionally | Demand: Moderate
The margins can be very high for this treatment depending on your pricing, but because of the cost to your client, your ROI may be slower. However CO₂ Laser Resurfacing can be profitable with expert positioning.

LED Light Therapy
Avg Price: $65 | Consumables: ~$1 | Repeatable: Weekly or monthly | Demand: Moderate
The margins for LED Light Therapy are very good, but may but may be best offered as an add-on to other treatments. In this case, the ROI can be excellent.


Conclusion: Strategy for ROI-Driven Treatment Selection
Every treatment should be evaluated beyond its face value by asking:

  • What is the true net margin after factoring in all costs?
  • Is client demand strong and sustainable?
  • Can the service be repeated or bundled to increase CLV?
  • Does it add something unique or complementary to the existing menu?

By building a menu of treatments that are high-margin, low-cost, repeatable, and align with market demand, you can unlock much stronger revenue and long-term scalability for your practice.
As we noted at the start, ROI isn’t all you need to think about in order to build a thriving business, but it’s a great start.

Want to talk to an expert at Medicreations about how we can help you grow your business?
Contact us!

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