Costs, Overheads & Profit Margins: Knowing What It Really Costs to Run Your Clinic.
Many aesthetic clinic owners measure success by looking at how much money is coming in. But turnover alone doesn’t tell the full story. A clinic can appear busy — with full diaries and strong sales — yet still struggle financially if costs and profit margins aren’t properly understood. To build a sustainable, profitable business, you need to know not just what you’re earning, but what you’re spending.
Fixed vs. Variable Costs
Fixed Costs
These are the non-negotiables — expenses you’ll pay every month regardless of how busy the clinic is:
• Rent or mortgage payments
• Staff salaries (permanent staff)
• Insurance premiums
• Business rates and software subscriptions
Fixed costs give you stability but can also become a burden if revenue dips.
Variable Costs
These fluctuate depending on how much business you’re doing:
• Consumables (needles, gloves, cleaning supplies)
• Product usage (fillers, skin boosters, retail skincare)
• Marketing spend (campaigns, ads, offers)
• Utilities (electricity, water, waste management)
Monitoring variable costs is vital because they rise and fall with patient volume — if not controlled, they can erode your profit.
Why Margins Matter
It’s not enough for a treatment to be popular — it also needs to be profitable.
For example:
• A dermal filler treatment charged at £300
• Product cost: £100
• Staff/practitioner cost: £120
• Overheads share: £20
• Profit left = £60
That’s just a 20% margin — which may not be sustainable.
By analysing margins, you can:
• Adjust pricing to reflect true costs.
• Prioritise high-margin services in marketing campaigns.
• Reassess or reprice low-margin treatments that take time and resources but add little profit.
Cost Control Tips
- Review Supplier Costs Regularly
- Negotiate better rates or discounts for bulk purchases.
- Shop around to compare pricing — loyalty to one supplier can cost you more over time.
- Track Product Wastage
- Train staff to manage product use carefully.
- Use stock control systems to avoid expiry and over-ordering.
- Optimise Staff Schedulin.
- Prevent overstaffing during quiet periods.
- Use data from previous months to predict busy vs. slow days.
The Impact of Overheads
Overheads like rent, admin costs, and marketing can creep up slowly. Left unchecked, they eat into profits and reduce your clinic’s flexibility.
Practical steps:
• Review overheads quarterly.
• Assess whether marketing spend is delivering ROI.
• Consider outsourcing or automating non-essential tasks.
Final Thoughts
Understanding costs and profit margins isn’t about cutting corners — it’s about ensuring your clinic thrives long term. By clearly distinguishing between fixed and variable costs, analysing treatment margins, and controlling overheads, you can make smarter financial decisions that protect your bottom line and support growth.
Busy does not always mean profitable — but with the right financial awareness, your clinic can achieve both.
AB Aesthetic Consultant Services have a dedicated aesthetic finance consultant with years of experience as financial controller of a number of large aesthetic chains. If you would like any support to create a profit margin calculator template, please contact us or find out more about our Financial Analysis, Performance, and Monitoring services.
