Financial Performance and Metrics
the Term Sheet
Gross Margin
Gross margin for a med spa is the difference between the revenue earned from services and products and the cost of delivering those services (COGS). Gross margin is usually expressed as a percentage of revenue and shows how much gross profit your medical spa makes before covering other expenses like rent, salaries, and marketing.
A higher gross margin means your med spa is keeping more money from each service or product sold, which means your business is more profitable.
