Skip to main content

Pricing, Service Mix & Patient Economics

“Popular services and growing memberships are not making you more money.”

A price copied from a competitor tells you nothing about your own costs. These articles build prices up from the real cost of a treatment and look at what memberships, packages, and treatment time do to the economics.

Common root causes

  • Prices set by competitors rather than by fully loaded cost
  • Product cost increases never passed through to price
  • Memberships converting full-price patients into discounted ones
  • Short, low-unit visits that carry the same fixed cost as full treatments

Metrics that expose it

Service contribution margin %
Net service price minus variable costs (product, provider compensation, supplies, card fees) ÷ Net service price (after discount)
Neurotoxin fully loaded margin
Neurotoxin revenue minus product cost, provider compensation, consumables, card fees, and allocated room and overhead cost ÷ Neurotoxin revenue
Average ticket
Total net revenue ÷ completed patient visits
Rebooking rate
Completed appointments where the patient booked a future appointment before leaving ÷ All completed appointments
Realized-price leakage
Menu-price value of services delivered minus revenue actually collected for them (discounts, comps, promotions, package and membership pricing below menu) ÷ Menu-price value of services delivered

Read in this order

Start with

Then

Try the Botox Profit CalculatorBack to the Financial Library

See this problem in your practice?

Ward Advisory can help work out how large the financial impact actually is and what is driving it.

Request a Strategy Call