Podcast Summary: Med Spa CEO Episode - "The Hidden Cost of Underpricing Your Med Spa Services (How to Charge Premium Prices with Confidence)"

Episode Overview

In this insightful episode of the Med Spa CEO Podcast, host Heather Terveen delves into the critical topic of pricing strategies for med spa and aesthetic practice owners. Titled "The Hidden Cost of Underpricing Your Med Spa Services (How to Charge Premium Prices with Confidence)," the episode, released on May 14, 2025, provides a comprehensive exploration of how proper pricing can significantly impact the profitability and sustainability of a med spa business. Heather shares her expertise on shifting pricing perceptions, introduces her Pricing Matrix framework, and discusses the essential belief changes necessary to confidently implement premium pricing.

1. The Significance of Correct Pricing

Heather Terveen opens the episode by emphasizing the importance of targeting the right market and ensuring that pricing strategies align with the value offered to clients. She highlights that pricing is not merely a number but a reflection of the quality and uniqueness of the services provided.

Heather Terveen [00:00]: "Are you speaking to the right market? ... whether you have built your marketing, your offers, your sales and your marketing system with those folks in mind."

Heather underscores that understanding your local market's willingness to pay for premium services is crucial. She warns against the common pitfall of underpricing, which can lead to unsustainable business practices.

2. Introducing the Pricing Matrix Framework

One of the central themes of the episode is Heather's Pricing Matrix, a strategic tool designed to help med spa owners establish a robust pricing strategy. The matrix comprises three key filters:

a. Sustainability

Sustainability is the foundational filter that ensures your pricing covers costs and supports long-term business viability.

Heather Terveen [08:21]: "The first part of the pricing matrix is that the pricing has to be sustainable."

Heather shares her experience from her previous e-commerce ventures, where she advised businesses to price their products at 5 to 10 times the landed cost to ensure profitability. She illustrates how lack of sustainable pricing can lead to financial losses, even when sales volumes are high.

b. Demand

Demand assesses the market's response to your pricing. High demand can justify premium pricing, while stagnant demand may indicate the need for adjustment.

Heather Terveen [13:59]: "As demand increases, you should increase your pricing. You should not be booked out for four, four months, six Months, if you will, and not increase your prices."

Heather explains that as a med spa becomes more sought-after, it's appropriate to adjust prices to reflect the increased demand, thereby enhancing profitability.

c. Positioning

Positioning differentiates your services from competitors, allowing you to command higher prices through unique value propositions.

Heather Terveen [15:21]: "If we position your offers differently, then we can actually have a lot more flexibility in being a premium priced place."

She advocates for creating a signature menu of services that stand out in the market, emphasizing unique benefits and superior outcomes. This differentiation supports the justification for premium pricing.

3. Belief Shifts for Implementing Premium Pricing

Heather identifies three critical belief shifts that med spa owners must adopt to successfully implement higher pricing:

a. Pricing Higher Attracts the Right Clients

Heather dispels the myth that higher prices alienate customers, explaining that premium pricing actually attracts more committed and serious clients.

Heather Terveen [18:13]: "Pricing higher doesn't push people away, it pulls in more serious, committed patients and clients."

She emphasizes that premium clients are often willing to invest more in quality services, leading to better client relationships and higher satisfaction rates.

b. Clients' Money Stories Are Not Your Responsibility

Owners often project their own pricing anxieties onto their clients. Heather advises separating personal beliefs about money from clients' perceptions.

Heather Terveen [19:25]: "Your clients' money stories are not your responsibility."

By reframing how they view clients' willingness to pay, med spa owners can approach pricing with greater confidence and reduce unnecessary concessions.

c. There is a Market for Every Price Point

Heather asserts that no matter where a med spa is located, there exists a segment of the market willing to pay for premium services.

Heather Terveen [21:39]: "There is a market for every price point. The real question is, are you speaking to the right market?"

She encourages owners to identify and target their ideal client base rather than settling for the lowest price point, which can dilute brand value and profitability.

4. Practical Examples and Personal Anecdotes

Heather enriches the discussion with personal experiences and real-world examples:

• E-commerce Pricing Challenges: Heather recounts her time running an e-commerce business, where she successfully implemented a 5 to 10x pricing strategy to ensure profitability despite higher unit costs.

• Coaching with Becca Pike: She shares insights from her collaboration with coach Becca Pike, who maintains high-ticket pricing for her mastermind and one-on-one coaching programs. This example illustrates that premium pricing does not necessarily deter clients when the value proposition is clear.

• Membership Pitfalls: Heather warns about the dangers of launching membership programs without a solid pricing foundation, highlighting cases where clients have lost money by offering excessive discounts within memberships.

Heather Terveen [13:15]: "I've had so many clients who have memberships that they really should have my recommendation before you launch a membership."

These anecdotes serve to reinforce the importance of strategic pricing and the consequences of neglecting sustainability and positioning.

5. Actionable Insights and Recommendations

Towards the end of the episode, Heather provides listeners with clear steps to enhance their pricing strategies:

• Develop a Signature Menu: Creating distinct and high-value service offerings helps differentiate your med spa and supports premium pricing.

• Conduct a Pricing Audit: Assess whether your current pricing covers costs and supports sustainability. Adjust prices as necessary to ensure profitability.

Heather Terveen [25:14]: "Step one is really understanding what is sustainable pricing for you."

• Align Marketing with Target Market: Ensure that your marketing efforts are geared towards attracting the right clientele who value and are willing to pay for premium services.

• Educate Your Team: Train your staff to understand and communicate the value of premium pricing, ensuring consistency in client interactions and sales approaches.

6. Conclusion and Final Thoughts

Heather concludes the episode by reiterating the transformative impact of proper pricing on business sustainability and profitability. She encourages med spa owners to be proactive in reassessing their pricing strategies to align with their business goals and market positioning.

Heather Terveen [25:43]: "Have you inadvertently unintentionally created a pricing strategy that isn't sustainable? ... create an intentional roadmap for having really premium pricing so that you ultimately can be more profitable in 2025 and beyond."

Heather's comprehensive approach empowers med spa owners to confidently elevate their pricing structures, attract ideal clients, and achieve long-term business success without compromising personal well-being.

Key Takeaways:

1. Sustainable Pricing: Ensure that your prices cover costs and support long-term profitability.
2. Demand Alignment: Adjust prices in response to increasing demand to maximize revenue.
3. Strategic Positioning: Differentiate your services to justify premium pricing.
4. Mindset Shifts: Overcome limiting beliefs about pricing to attract the right clientele.
5. Action-Oriented Steps: Implement Heather's Pricing Matrix and signature menu to establish a robust pricing strategy.

By following these guidelines, med spa owners can avoid the hidden costs of underpricing and confidently position their businesses for greater financial success and client satisfaction.