A new service like aesthetics, IV therapy or a weight-loss program needs its own revenue line, its own product costs and a price that covers both. Set that up in your books before the first sale, and check the legal and tax side first.
Check scope, insurance and tax first
Before you launch, ask an attorney whether the service fits your license and your membership agreement, and ask your insurer whether your coverage includes it. Then ask your CPA about sales tax. Products you sell may be taxable even when your memberships aren't. This post covers sales tax on products.
Give it its own revenue line
If new service revenue lands in the same account as memberships, you can't tell whether the service is paying off, and your revenue per member gets inflated. Ask your bookkeeper for a separate income account for each service you add.
Track what it costs to deliver
Most of these services come with direct costs: injectables, IV bags and supplies, medications, lab work. Record them as their own expense lines, close to the matching revenue, so you can see the margin.
If you buy product in bulk, you'll likely need to count what's on the shelf at month end. Here's how inventory counts work.
Price it from the cost up
In a made-up example, an IV session sells for $150. Supplies and fluids cost $45, and an hour of staff time costs $30. That leaves $75 a session toward rent, overhead and profit. If the staff time is closer to two hours, the margin drops to $45.
Include card fees and the time it takes to book and chart each visit. Small costs add up once you run dozens of sessions a month.
Packages and prepaid programs
If members prepay for a 12-week program, you've collected cash for work you haven't done yet. That's handled the same way as annual memberships. This post explains how. Know your refund policy before you sell the first package.
Watch your own time
A new service can fill your schedule with lower-margin visits and crowd out the membership care your practice was built on. I'd check, after the first two months, how many hours a week the service takes and whether members are waiting longer for appointments. If they are, the service may be costing you more than its margin shows.
What I'd do this week
- Ask your attorney and insurer about scope and coverage.
- Ask your CPA whether any product you'll sell is taxable.
- Ask your bookkeeper for a revenue line and cost lines for the service.
- Write down the cost of one session or one program, including staff time.
Common questions
Can members get a discount on the new service?
Yes, many practices offer one. Record the discount so you can see what it costs you, and make sure the price still covers the direct costs.
Should I set up a separate company for it?
Sometimes owners do, for legal or tax reasons. That's a question for your attorney and CPA.
How soon will I know if it's working?
Give it a few months, then compare revenue with direct costs and staff time. If the margin is thin, change the price or the way you deliver it.
Want to see what each service earns?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.