Pricing Strategies for Clinics & Medspas: How Cheap Prices Can Kill Your Business

If you run a clinic or medical spa practice, you’ve probably noticed how hard it is to grow profits. You’re already delivering outstanding treatments, investing in your team, and running campaigns to bring in new clients.

But what if you could increase your profits almost instantly — without spending more on advertising, hiring more staff, or cramming in extra appointments?

Here’s the truth: profit isn’t natural — you have to force it.

And in our industry, the single biggest lever for doing that isn’t more patients. It’s pricing.

That’s exactly what Alex Hormozi discovered in his $100M books collection — and the lessons translate perfectly to marketing your aesthetic clinics and medspas here in the UK.

Let’s break down what he found and how you can use it to grow your revenue and margins this quarter.


The “Genie” Problem: Three Ways to Double Your Business 🧞‍♂️

Imagine a genie gives you three options to double your revenue:

  1. Double your number of new patients
  2. Double how often they buy
  3. Double your prices

Which would you choose?

Most clinics instinctively say “more new patients.” But mozi ran the numbers across hundreds of businesses, and here’s what he found:

Option Result
2× new patients 3.5× profit
2× repeat visits 3.5× profit
2× prices 6× profit

Doubling your prices without changing anything else can increase profit six fold.

That’s how powerful pricing is. And it doesn’t require a bigger team, more hours, or extra stress.


Why Pricing Beats Marketing Every Time

Data from ProfitWell, a software company that analysed 512 businesses:

“Improving pricing by just 1% is twice as effective at increasing profit as improving retention, and nearly four times as effective as improving acquisition.”

Let that sink in.

If you’re spending thousands each month on ads but haven’t reviewed your pricing in over a year, you could be sitting on the easiest source of new profit your business will ever see.

Clinics that test and adjust their pricing regularly make significantly more profit and grow faster over time without needing to increase patient volume.


Three Pricing Models (and Which One You Need)

Most clinics price based on “what everyone else charges.” That’s a recipe for burnout. Instead, you need to understand the three core pricing models:

1️⃣ Cost-Plus Pricing

You add a margin on top of your product or treatment costs.
Simple but outdated. Patients don’t care what your cost is — they care about the results.

2️⃣ Competitor-Based Pricing

You copy what others in your area are charging.
Common but dangerous. You’re building your business on someone else’s numbers and strategy.

3️⃣ Value-Based Pricing

You price according to what your patients are willing to pay for the value you deliver.
This is the sweet spot. For cosmetic skin clinics, that value is confidence, youthfulness, convenience, and visible results — not millilitres or machine time.

Here’s how to find your value-driven price:

Metric What It Tells You
Conversion rate Are enough patients saying “yes” at this price?
Retention / churn Do they keep coming back at this price?
Lifetime value (LTV) How much do they spend over time?

The goal isn’t to attract the most patients — it’s to make the most profit per patient while keeping them satisfied and loyal.


Rules of Pricing — Clinic Edition

Here’s how pricing principles apply directly to clinics and medspas:

  • If your diary is full, your prices are too low.
    You should only be “fully booked” when you’re training new staff or expanding capacity.
  • If you close more than 50% of consultations, your prices are too low.
    A very high conversion rate isn’t a sign of success — it’s a sign you’re under priced.
  • Bill less often, not more often.
    Monthly memberships lead to higher cancellations. Quarterly or annual memberships lead to more commitment.
  • Display prices in small units, but bill in large ones.
    “Just £6 per day” sounds easier to digest than “£2,000 per year” — but bill the full cost upfront.
  • Tie pricing to transformation, not time.
    Don’t charge by the session; charge for the result.
    Instead of “£400 per treatment,” try “£1,600 to lift and tighten the face — for results that last up to 12 months.”
  • Offer tiers.
    Some patients want “maintenance,” others want “transformation.” Tiered pricing lets you serve both audiences without discounting.

The Instant Profit Playbook for Clinics

Here’s ten “instant profit” plays — small pricing changes that can add 26%–64% more profit without hurting clinic conversion rates.

Here’s how they translate for clinics and medspas:

# Pricing Play Description Potential Profit Lift
1 28-Day Billing Bill memberships every 28 days (13 cycles per year instead of 12). +8.3%
2 Processing Fee + Second Card Add a 3–4% card fee or keep a backup card on file. +3–4%
3 Add VAT Pass VAT on to clients rather than absorbing it. +0–20%
4 Annual Price Increase Apply a 3–10% CPI-linked rise each year. +3–10%
5 Annual Billing Option Offer a discount for paying annually — cuts churn and boosts cash flow. +10–15%
6 Round Up Prices Adjust £247 → £249 or £249.99 — clients rarely notice. +1–3%
7 Annual Renewal Fee Add a “VIP renewal” fee (£99–£199) for memberships. +10%
8 Automatic Continuity Roll clients into a low-cost maintenance plan after programmes. +10%
9 Ultra-High Ticket Anchor Introduce a £10,000 “Signature Glow” or “Celebrity Transformation” package. +10–15%
10 Guarantee or Warranty Upsell Offer “touch-up cover” or “results guarantee.” +5–20%

Even implementing two or three of these can transform your bottom line.


Example: The 28-Day Membership Shift

One of our clients offered a £199/month Hydrafacial membership.
We switched it to £199 every 28 days instead of monthly.

That created 13 billing cycles per year instead of 12, with no drop in conversion or retention.

Result:

  • 8.3% more annual revenue
  • 41% higher net profit (pure margin)
  • Implemented in under an hour, with zero new clients

Example: The Processing Fee Advantage

Another medspa added a 3.99% processing fee, giving clients the choice to avoid it by providing a backup card.

Result:

  • 4% more revenue overnight
  • 30% fewer failed payments
  • No decline in sales conversions

If your clinic turns over £1 million annually, that single change adds £40,000 straight to your profit.


Example: Annual Price Increases

Your costs — skincare products, injectables, consumables, wages — rise every year. Yet many clinics haven’t raised their prices in three years.

Here’s what happens when you apply a modest 5% annual increase:

Year Treatment Price Cumulative Increase
Year 1 £100
Year 2 £105 +5%
Year 3 £110 +10%
Year 4 £116 +16%
Year 5 £122 +22%

That simple habit adds 22% more revenue in five years — without adding a single new patient.


The Luxury Price Anchor

Try this: introduce a “VIP Luxe Transformation” that’s 10× your standard offer — say, a £10,000 full-face rejuvenation or a £15,000 “Glow Year” programme.

Even if few buy it, it reframes your other services. Your £1,500 filler package suddenly looks reasonable by comparison.

One of our partner clinics launched a £12,000 “Signature Look” package and saw average client spend rise from £1,200 to £1,900 — purely due to perceived value.


Automatic Continuity: “Maintenance Mode”

When a treatment plan ends, don’t stop billing — transition patients into maintenance memberships.

Example: After a six-month skin transformation plan (£3,000), offer continued access at £149 every 28 days for skincare savings, quarterly reviews, and priority booking.

Around half of patients stay on, providing predictable, high-margin recurring income.


🧠 Final Thoughts

Pricing is the most powerful lever in your business. It’s four times more effective than acquiring new clients and twice as effective as retaining them.

When done right, pricing:

  • Boosts profits instantly
  • Reduces stress and churn
  • Attracts better-fit, more loyal patients
  • Positions your brand as premium

The key is courage and consistency.

Try one of these pricing plays this month. Start small, measure results, and watch your clinic’s financials improve faster than any ad campaign ever could.

Because at the end of the day, you don’t need more patients, you just need to charge what your expertise is truly worth.