Day Spa Business

How Profitable Is A Day Spa Business? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is A Day Spa Business? (Updated for 2024)

So you want to start a day spa business?

And the first question that came to your mind was, “well, are day spa businesses actually profitable?”

With a market size of $99B - there’s plenty of business to go around.

Especially considering:

You could start a day spa business with as low as $600
Based on our data, day spa businesses generate an average of $1.84M per year
You could see gross margins as high as 48% with day spa businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a day spa business.

Let’s dive in!

Is a day spa business profitable?

Yes, a day spa business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.84M per year with an estimated gross margin of 43%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your day spa business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your day spa business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a day spa business worth it?

If you’re wondering if a day spa business is worth it, the answer is a big YES. With day spa businesses, you have the potential to earn $1.84M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $99B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a day spa business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful day spa businesses case studies.

Examples Of Profitable Day Spa Businesses

Here are a few examples of profitable day spa businesses, and a few more details about them:

1. Glosshouz ($3.3M/year)

Founder Loni, a former electrical engineer, decided to start Glosshouz after feeling a lack of purpose in her corporate career. She wanted to create a business primarily for women that offered a wide range of aesthetic and wellness services. Since its founding in 2016, Glosshouz has grown to have over 1000 monthly members and generated $3.3 million in revenue in 2022. Loni is now planning to franchise the Glosshouz brand and share her success with other entrepreneurs.

Is it profitable? Yes
How much money it makes: $3.3M/year
How much did it cost to start: $1.13M

How My Spa Makes $3.3M/Year Through A Robust Recurring Membership Model

Glosshouz is a full-service day spa that offers aesthetic and wellness services and has grown to over 1000 monthly members, earning $3,311,338 in revenue in 2022, and will soon be offering franchises.

Read this case study

Read by 2,558 founders

2. Meridian Fitness ($708K/year)

Frustrated by the lack of local fitness options and intrigued by a gap in the market for stone massages, Alma Curry launched Meridian Fitness in Greenwich, now generating around £200,000 annually. Her gym-spa hybrid quickly became a community hub, leveraging SEO and word-of-mouth to attract over 50 members in the first quarter.

Is it profitable? Yes
What's the gross margin? 28%
How much money it makes: $708K/year
How much did it cost to start: $50K

My Neighborhood Gym Brings In £60K/Month

Discover the inspiring story of Alma Curry, founder of Meridian Fitness, as she shares her vision to create a holistic fitness community that offers top-notch training classes, affordable gym membership prices, and a variety of fitness programs for people of all ages.

Read this case study

Read by 1,137 founders

3. Meridian Spa ($360K/year)

Alma Curry founded Meridian Spa in 2017 after noticing a gap in the market for combining fitness and wellness. With her first venture, Meridian Fitness, already successful, she took a £120K gamble that now earns £30K/month.

Is it profitable? Yes
What's the gross margin? 48%
How much money it makes: $360K/year
How much did it cost to start: $600

My Path to Building A $30K/Month Spa Business

Case study of Alma Curry's successful business, Meridian Spa, generating impressive annual revenue of £350K with a profit of £198-200K, reaching 2.82M total impressions in the last 12 months through effective marketing strategies like PPC, FB Meta ads, and SEO.

Read this case study

Read by 1,233 founders

Learn more about starting a day spa business:

Where to start?

-> How much does it cost to start a day spa business?
-> Pros and cons of a day spa business

Need inspiration?

-> Other day spa business success stories
-> Day spa business slogans

Other resources

How much can you make with a day spa business?

With a day spa business, you can make an average of $1.84M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $600. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a day spa business make a week?

Based on our data, average weekly revenue for a day spa business ranges around $38.4K. As such, you could see monthly revenues of $154K.

To know if your day spa business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your day spa business.

How much do day spa businesses owners make?

The income of a day spa business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established day spa business is about $38.4K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a day spa business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Day Spa Business Profit Margins

Generally speaking, a day spa business can expect profit margin of around 43%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a day spa business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, day spa business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, day spa business owners can ensure long-term sustainability and profitability for their business.

Day spa business owner salary

The salary of a day spa business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established day spa business, in a prime position, might see an average weekly salary around the ballpark of $16.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a day spa business may be a promising business to start - but the success of your day spa business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable day spa business.

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Starting A Day Spa Business: Everything You Need To Know

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