Building Out a Successful Retail Program at Your Med Spa

Importance of an Effective Retail Program at Your Med Spa

A retail skincare program can be a powerful, yet overlooked, revenue driver for a med spa, dermatologist, or plastic surgeon. In fact, Guidepoint Qsight reported in 2023, U.S. aesthetics practices generated approximately $930 million in sales of professional-grade skincare products.

Patients, readily investing in their skin, look to providers as skincare experts. However, many leave the treatment room without product recommendations to help them achieve their skincare goals. What’s more, studies show that when providers don’t recommend a skincare product at the time of treatment, a patient will buy one elsewhere within 48 hours. 

It’s a missed opportunity to let patients leave your practice without skincare products. Retail skincare sales are ancillary income for your business; each purchase increases the transaction value of a patient’s visit ($134 on average). Plus, your retail program can add value to patients, too. The right products are like treatment insurance–maintaining, protecting, and enhancing results. 

A strong retail program can also improve retention rates and drive patients through your doors more frequently. A patient might not be due for Botox, but they need to refill their favorite serum–and maybe try the new eye cream you recommended at their last visit.

Added revenue, better patient results, and increased retention–the benefits are too good not to prioritize. In this article, we walk through building out a retail program that delivers results to your patients’ skin and to your practice’s bottom line. We’ll cover: 

• Choosing Products
• Working with Vendors
• Increasing Sales Volume

Choosing the Right Skincare Products for Your Practice

There are many factors–and many brands–to consider when choosing skincare products. First, you’ll need to be acquainted with the science behind the ingredients and products you choose. Without a solid understanding of what the products do and how they work, you won’t be able to make thoughtful, results-oriented recommendations to your patients. 

When choosing products to carry, every medical spa’s priorities will depend on many factors: 

• Services and treatments. Choose products that compliment or enhance results. 
• Patient demographics. Age, skin type, and income level can influence the products you choose.
• Climate and season. For example, hydrating skincare is a high priority in dry climates or high altitudes.
• Personal preferences and favorites. If you and your team love a product, it’s easier to recommend it to patients.

With a solid foundation of the science and your patients’ needs in place, truly to get to know products by testing them. Then, narrow your offerings down to about three product lines. Too many products can be overwhelming (for your team and patients), so start with a small selection that addresses your patients’ primary needs. 

Here are a few recommendations for selecting skincare lines and products: 

• Start with a strong foundation that can serve your patient base. Nearly everyone can benefit from retinol, vitamin C, and sunscreen in their skincare routine. From there, consider a cleanser, eye, and neck cream. Look at lines like Obagi, Skinceuticals,  ZO, or Skinbetter, and others below to build out a foundational skincare regimen for patients.
• Add serums to the mix, like the ones from iS Clinical.
• Some brands, like Skinceuticals, have a wide range of products to choose from. Look to their top sellers to narrow down the number of skus you offer.
• With three primary lines in place, you might cherry pick a few extra products to fill gaps or meet the needs of another skin type. Revision offers products that fit nicely in the gaps, like Nectifirm Advance, Intellishade, or the DEJ system.
• Consider a favorite multi-tasking product, like TNS from Skinmedica.
• Depending on your practice, you might consider botanical based medical grade or pharmaceutical products. Clean skincare lines include Epionce and iS Clinical.
• Dermatologists prioritizing SPFs can look at Elta MD or Colorescience.

Working with Vendors

When you’re choosing a product line, finding the right vendor partner can be as important as choosing a great product. Remember, your skincare vendor benefits from your partnership and success, which is why it’s so important to choose one that supports your high volume sales goals. 

Most vendors are eager to educate your team so that they’re empowered to recommend products. Your team can’t sell the products if they haven’t used them, which is why it’s crucial your vendor provides samples and products for your team to try. Providers can’t make sound recommendations if they don’t understand how the products work, so continued education from vendors is incredibly important. 

A supportive vendor is an active partner. They might offer frequent lunch and learns, event support or collaboration, marketing cards, and other initiatives. Great vendors also make sure your practice is equipped with the product you need; they readily turn over or replace expired products.

If your vendor is reluctant to train your team in person, provide samples, or offer support in other ways, it’s a red flag. There are many product lines that go out of their way to help your retail program succeed. Gravitate toward the ones who actively help you achieve your goals. 

Strategies for High Volume Retail Sales at Your Med Spa

Before we discuss increasing sales volume, it’s important to understand industry benchmarks. Here are some to keep in mind: 

• Standard mark-up for skincare is 50%. If you price higher, it might be difficult to sell because your patients can find better prices elsewhere. 
• A successful retail program at a medical spa should generate about 10 to 20% of total service sales. (On a day you bring in $8,000, $800 of that will be in retail sales.)
• Many practices incentivize providers with 10% on every retail sale they make.

One of the most effective ways to promote skincare sales is to encourage your team to make recommendations to patients. Some providers and members on your team may not be comfortable in a “sales,” position. Reframing “sales” as “recommendations” is helpful, especially if your providers understand the power and efficacy of the product to enhance or protect a patient’s results. 

Here are more strategies to increase retail sales volume: 

• Display products where a patient receives treatment. They’ll be top of mind for both you and the patient.
• Use products during the treatment. “I’m going to add some Revox,” is an easy way for an injector to start a conversation about a product that can help a patient enhance and maintain results. 
• Ask patients about their skincare routine during their treatment. This gives you an opportunity to make recommendations for solutions you aren’t treating. For example, an injector can recommend a serum for hyperpigmentation, an eye cream, or an SPF. 
• Choose a product of the month to promote. Sometimes, it’s easier to have a go-to product to promote when a provider is caught up in their work. Choose a crowd-pleasing product each month.
• Bundle products with treatments. With some treatments, like microneedling or BBL, products can be bundled right into the treatment package to help with results post treatment. 
• Give members gifts and samples. Send members home with samples every quarter. Tease new products or showcase your favorites. And, offer a discount for members who return with an empty sample that they loved. 
• Train your front desk staff to discuss skincare, too. Encourage your front desk to ask, “Did your provider have a chance to recommend any products to you?” Make sure your entire team is educated on the products. Providers might run out of time, but patients should never walk out of your clinic without a product. 
• Offer a 10% discount when patients bring in an empty product. A patient might be reluctant to make a purchase if they have a full jar of a product at home. “Bring the jar back when it’s empty, and we’ll give you 10% off this product,” is a good way to keep your patients coming back. 
• Create team sales contests. Bring the entire team together, providers and support staff, with sales contests for the entire practice. It allows your team to work toward a common goal and engages everyone as they learn about your products. A shared incentive for the team can work to kickstart or give your retail program a boost.

Optimize Your Med Spa Retail Program with Skytale Group

Skytale Group’s management consulting team can help you reach your practice goals–from your retail program and beyond. With decades of experience in the medical aesthetics industry, our consultants help medical spas elevate their operations, finances, culture, and more. Reach out to learn more.