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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Sauna Business Profitable?

The profitability of your Sauna business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Sauna business. 

Sauna Industry Prospects

The global sauna and spa market size was valued at USD 3.9 billion in 2022 and is expected to expand at a CAGR of 4.79% during the forecast period, reaching USD 5178.06 million by 2028 (researchreportsworld). Another source estimates the global sauna and spa market to be over three billion euros, with the market size expected to reach USD 135.95 billion in 2024 and grow at a CAGR of 7.43% during 2024-2029 (mordorintelligence). The market is anticipated to experience significant growth, driven by factors such as increasing awareness of the health benefits of sauna and spa and the rising demand The US sauna market size is estimated to grow at a compound annual growth rate (CAGR) of 6.06% between 2022 and 2027, reaching a market size of $0.12 billion by 2027 (technavio). The sauna market in the US is segmented by end-user (hotel, gym, household and others) and product type (traditional, steam and infrared). The hotel segment was the largest segment in 2017, valued at $0.12 billion. The increasing focus on wellness and self-care is a key factor driving market growth

for sauna and spa equipment (prnewswire).


  • Sauna Equipment and Installation: This includes the cost of purchasing and installing sauna units, whether traditional, infrared, or steam saunas. Each type has different cost implications and installation requirements.
  • Building or Space Improvements: Expenses related to modifying or renovating your space to accommodate the saunas, changing areas, showers and relaxation spaces. This can involve electrical upgrades, plumbing work, ventilation systems and the construction of sauna rooms.
  • Reception and Waiting Area Setup: Costs for furnishing and decorating the reception and waiting areas, including seating, a reception desk, computer systems for booking and customer management and décor to create a welcoming atmosphere.
  • Locker Room Fit-Out: Investment in lockers, benches, showers and other amenities for customer convenience and comfort in changing areas.
  • Heating, Ventilation and Air Conditioning (HVAC) System: Beyond the sauna units themselves, ensuring proper ventilation and air quality in your facility may require specialized HVAC systems.
  • Water System and Plumbing: For steam saunas, showers and possibly a pool or hot tub, if included in your business model. This includes the cost of installation and any necessary water treatment systems.
  • Electrical Upgrades: Saunas, especially electric and infrared saunas, can require significant electrical infrastructure. Upgrading your facility to handle these needs is a crucial capital expense.
  • Lighting and Sound Systems: Investments in ambient lighting and sound systems to enhance the relaxation experience in sauna rooms and common areas.
  • Safety Equipment: Including fire safety equipment, first aid kits and any other safety-related installations required by local regulations for public saunas.
  • Signage: Both exterior and interior signage to brand your facility and guide clients.
  • Point of Sale (POS) System: For processing payments, managing memberships or packages and possibly integrating with your booking system.
  • Security System: Installation of security cameras, alarms and access control systems to ensure the safety of your clients and the facility.
  • Furniture and Decor for Relaxation Areas: Comfortable seating, tables and other furniture for relaxation areas outside of the sauna rooms, including any outdoor spaces you might outfit for use in warmer months.
  • Professional Fees: Fees for architects, interior designers, contractors and any legal or consulting services required to launch your business.
  • Initial Marketing and Branding: Costs associated with developing a brand identity, website development and initial marketing campaigns to attract your first customers.
  • Training and Certification: Costs for any necessary training or certifications required for you or your staff to operate the sauna facilities safely and compliantly.

It’s important to carefully plan and budget for these expenses, as the initial investment can significantly impact the financial planning and success of your sauna business. Consulting with industry experts and professionals like accountants and financial advisors can also provide valuable insights into effectively managing your CapEx for a successful launch


  • Membership Fees: Offering monthly or annual memberships that provide members unlimited access or a specific number of visits to the sauna can create a steady income stream. Memberships encourage repeat business and customer loyalty.
  • Single Visit Rates: Charging non-members a fee for single visits allows you to cater to casual users or tourists who may not commit to a membership but still want to enjoy the sauna experience.
  • Package Deals: Selling packages of multiple visits at a discounted rate compared to single visit fees can encourage repeat visits and upfront payment, improving cash flow.
  • Private Sessions: Offering the option to book private sauna sessions at a premium rate can attract customers seeking a more exclusive or intimate experience, such as couples, families, or small groups.
  • Wellness and Spa Services: Expanding your service offerings to include massages, facials, body wraps, or other wellness treatments can significantly increase your revenue potential. These services complement the sauna experience and can be offered as stand-alone options or part of a package deal.
  • Health and Fitness Classes: If space allows, hosting yoga, meditation, or other fitness classes can attract a broader clientele. These classes can be priced separately or included in certain membership tiers.
  • Retail Sales: Selling health and wellness products, such as skincare items, essential oils, sauna accessories (like towels, robes, or slippers) and health supplements can generate additional revenue. These products can enhance the sauna experience or be used at home.
  • Refreshments and Snacks: Offering healthy refreshments, such as smoothies, teas, juices and light snacks, can provide another revenue stream. Ensure any food services comply with local health regulations.
  • Event Hosting: Renting out your space for events, like private parties, corporate wellness retreats, or special occasions, can be a lucrative revenue source. You can offer tailored packages that include access to the sauna, additional wellness services and catering options.
  • Workshops and Wellness Programs: Organizing workshops or programs focused on health, wellness and self-care can attract attendees interested in improving their lifestyle. These can be offered as paid events outside of regular membership and service fees.
  • Gift Cards and Vouchers: Selling gift cards or vouchers, especially during holiday seasons, can attract new customers and serve as a great gift option, potentially introducing your sauna services to a wider audience.
  • Affiliate Marketing and Partnerships: Collaborating with local businesses, health practitioners, or fitness centers can create referral opportunities. Offering a commission for referrals or creating joint packages can broaden your customer base.

By implementing a mix of these revenue sources, you can cater to a wide range of customer needs and preferences, maximizing your sauna business’s income potential. It’s essential to regularly review and adjust your offerings and pricing strategies to reflect customer demand, market trends and operational efficiency.

Cost of Services Sold

  • Utilities: The most significant variable cost for a sauna business would be utilities, especially electricity and water usage, which are directly tied to the operation of the saunas. The more the saunas are used, the higher these costs will be due to increased energy consumption for heating and water usage for showers and cleaning.
  • Maintenance and Repairs: Regular maintenance and occasional repairs of sauna equipment, ventilation systems and other facility aspects are variable costs that ensure the smooth operation of your services. These costs can fluctuate based on usage rates and the need for repairs.
  • Cleaning Supplies and Services: The cost of cleaning supplies and possibly external cleaning services to maintain a hygienic environment in the sauna, showers and rest of the facility. This cost varies with the frequency of sauna use and the standards of cleanliness you maintain.
  • Laundry Expenses: If you provide towels, robes, or other linens to your clients, the costs for laundry services (whether done in-house or outsourced) will vary with usage.
  • Consumables: This includes any consumable items provided to clients during their visit, such as bottled water, hygiene products and any other amenities offered as part of the sauna experience. The cost of these items will increase with the number of clients.
  • Staff Wages: For businesses that pay staff based on the number of hours worked (e.g., cleaning staff, maintenance personnel, or receptionists working in shifts), this cost varies with the amount of service provided. While some staff costs may be fixed, any overtime or additional staffing needed to accommodate peak times would be considered a variable cost.
  • Commission Fees: If you partner with online booking platforms or third-party vendors that charge a commission per booking, these fees are directly tied to service revenue and thus vary with the volume of bookings.
  • Wear and Tear: The cost associated with the faster depreciation of sauna equipment and facilities due to usage. This is a bit more abstract but represents the need to set aside funds for eventual replacement or significant overhauls, which increases with client usage.

Managing these variable costs effectively is vital for the financial health of your sauna business. It involves monitoring usage patterns, optimizing operations to be energy-efficient, maintaining equipment to prevent costly repairs and managing inventory levels of consumables to avoid wastage. Keeping a close eye on these costs can help you adjust pricing, promotions and operational practices to improve profitability.

Operating Expenses

  • Rent or Lease Payments: The cost of leasing the space where your sauna business operates. This is a fixed cost and one of the most significant operating expenses for most businesses.
  • Utilities: Basic utilities expenses such as electricity, water, gas and internet services that are necessary to maintain an operational facility, beyond the additional utility costs directly associated with running the saunas.
  • Salaries and Wages: Payments to employees in administrative roles, such as receptionists, managers, or marketing staff. This category also includes payroll taxes, benefits and any other employee-related expenses.
  • Insurance: Premiums for various types of insurance policies required to protect the business, including general liability insurance, property insurance, workers’ compensation and professional liability insurance.
  • Marketing and Advertising: Costs associated with promoting the sauna business, including online advertising, print materials, social media campaigns, website maintenance and promotional events to attract new clients.
  • Professional Services: Fees for services provided by accountants, lawyers, business consultants, or other professionals who assist with the legal, financial and operational aspects of running your business.
  • Software Subscriptions: Ongoing costs for software used in managing the business, such as booking and scheduling software, customer relationship management (CRM) systems, accounting software and any other operational tools.
  • Office Supplies and Equipment: Expenses for office supplies like paper, ink, pens and other stationery, as well as any office equipment not directly used in providing sauna services but essential for business operations.
  • Repairs and Maintenance: Regular maintenance and any necessary repairs of the business premises not directly related to the sauna equipment, including HVAC systems, roofing and plumbing outside of the sauna areas.
  • Taxes and Licenses: Various taxes that the business is obligated to pay, including sales taxes, property taxes (if applicable) and any business licenses or permits required to operate legally.
  • Training and Education: Costs associated with ongoing training and education for staff, including first aid, customer service and business management, which are not directly tied to the provision of sauna services.
  • Travel and Entertainment: Expenses related to business travel or entertainment, whether for networking, attending industry conferences, or client meetings, aimed at business development or operational improvement.
  • Depreciation: While not a cash outflow, depreciation of fixed assets (like office furniture, computer equipment and non-service-specific fixtures) is accounted for as an operating expense, reflecting the loss of value over time.
  • Loan Interest: Interest payments on any business loans or credit lines. The interest portion is considered an operating expense, while the principal repayment is not.

Efficient management of these operating expenses is crucial for ensuring the profitability of your sauna business. Regularly reviewing and adjusting these costs, where possible, can help maintain financial health and support the growth and sustainability of your operation

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