How to Price Aesthetic Treatments
A framework for pricing aesthetic treatments — direct costs, overhead, market context, margin, packages, and reviewing prices over time.
A framework for pricing aesthetic treatments — direct costs, overhead, market context, margin, packages, and reviewing prices over time.
Pricing aesthetic treatments involves calculating direct costs, allocating overhead, understanding market context, setting a desired margin, and considering package and membership structures. This article provides a framework for pricing — it does not give pricing-fixing advice and does not suggest coordinating prices with competitors.
Direct costs for each treatment include:
Calculate the direct cost per treatment to establish a floor for pricing.
Supply costs vary by treatment:
Track supply costs carefully — they are often the largest variable cost.
Provider time cost includes:
Medical oversight cost per treatment may include:
Technology costs per treatment may include:
Insurance costs per treatment may include:
Facility costs allocated across treatments include:
Marketing costs allocated across treatments include:
Administrative costs include:
Understanding market context helps set prices that are competitive without eroding margin:
Note: Market context should inform pricing, but practices should not coordinate prices with competitors. Price-fixing is illegal.
After calculating costs and understanding the market, set a desired margin:
Packages can support retention and increase average transaction value:
Packages should be structured so that the discounted price still covers costs and provides acceptable margin.
Memberships can provide recurring revenue:
Memberships should be structured so that the value provided does not erode margin below sustainability.
Excessive discounting can:
See How to Market an Aesthetic Practice Without Constant Discounts for alternatives to discount-driven marketing.
Prices should be reviewed periodically:
How should an aesthetic practice set treatment prices? Pricing should be based on direct costs (supplies, provider time, oversight, technology, insurance), allocated overhead, market context, and desired margin. Calculate the cost per treatment and set a price that provides a sustainable margin.
Should new practices rely on discounts? Discounting can attract patients initially, but excessive discounting can erode margin and position the practice as price-driven. Consider building value through positioning, education, and patient experience instead. See How to Market an Aesthetic Practice Without Constant Discounts.
How often should prices be reviewed? Prices should be reviewed at a defined interval (e.g., annually) and whenever costs change, new treatments are added, or market conditions shift.
Can I coordinate prices with other practices in my area? No. Price coordination with competitors is illegal. Market context should inform your pricing decisions, but you should set prices independently based on your costs and strategy.
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