Product vs. Service Income

Product vs. Service Income

What This Chart Shows

The Product vs. Service Income chart displays a visual breakdown of your total income for the selected time period, divided between product sales and service revenue.

Product income typically includes retail items such as supplements, braces, pillows, or orthotics, while service income reflects revenue from chiropractic adjustments, exams, therapies, and other clinical treatments.

This KPI provides a clear snapshot of how much of your practice’s income comes from direct patient services versus retail products, giving insight into overall business balance and diversification.

Why This KPI Matters

For chiropractic practices, maintaining a healthy mix between service-based and product-based income is crucial.
While services form the backbone of revenue, product sales often carry higher margins and can significantly boost profitability.

Tracking this KPI helps practice owners:

  • Understand the financial composition of their income.

  • Identify underperforming revenue areas.

  • Ensure that clinical care remains the core driver while leveraging retail opportunities for growth.

Additionally, consistent product sales can indicate strong patient trust and engagement, as patients are more likely to purchase wellness products from practices they rely on for care.

How to Use This Data

1. Evaluate Revenue Balance

Compare your product and service income to assess whether your practice’s revenue model is sustainable. A practice too dependent on one stream can face cash flow risk if demand shifts.

2. Strengthen Retail Performance

If product income is consistently low, evaluate merchandising, in-office displays, and team communication strategies. Small adjustments to promotion and education can increase sales without disrupting care flow.

3. Align with Patient Care

Encourage providers to recommend relevant wellness products during visits. Integrating products into care plans improves patient outcomes and adds incremental revenue.

4. Track Over Time

Monitor changes in your income mix month-over-month to spot growth opportunities or seasonal fluctuations in product sales.

5. Forecast Profitability

Product income tends to yield higher margins than service income. Understanding this mix can guide pricing adjustments, promotions, and budgeting decisions.

Best Practice Benchmarks

In most chiropractic practices, service income should represent approximately 85–95% of total revenue, reflecting the importance of ongoing patient care and treatment services.
Product income typically accounts for 5–15%, depending on practice size, patient base, and product offerings.

Practices that successfully promote clinically relevant wellness products — such as ergonomic supports, supplements, or posture aids — often achieve product income percentages near the top of this range.
Regularly reviewing this KPI ensures that product sales enhance, rather than distract from, the core service mission of the practice while improving both profitability and patient outcomes.

Benefits to the Practice

  • Improves financial visibility and balance between service and retail revenue

  • Identifies growth opportunities in underperforming income categories

  • Enhances patient engagement through personalized product recommendations

  • Supports data-driven financial planning and profitability forecasting

  • Helps maintain a sustainable and diversified revenue mix

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