Dangerous advance payment system
Recently, a major hair removal clinic chain went bankrupt with a total debt of 12.4 billion yen.
Last year, a similar clinic with the name “Ginza" also went bankrupt with a debt of 5.8 billion yen.
These were not hospitals, but clinics.
How could a clinic become a chain to such an extent and accumulate that kind of debt?
The reason is that they operated with an advance payment system—requiring customers to pay in full upfront for treatments.
In the past, large English conversation schools that advertised “study abroad at the station" also suffered from massive bankruptcies.
Since they received the total payment before providing the service, they accumulated large amounts of money by working hard on sales.
With that money, they were able to expand to multiple locations.
Instead of improving the quality of service, they gathered customers through advertising.
The more famous the business was for its TV commercials, the more likely it was to experience sudden, massive bankruptcies.
This model is similar to a pyramid scheme or membership ticket sales.
In the medical field, flashy advertising is often seen in cosmetic clinics.
Since medical insurance doesn’t cover advertising costs, the cosmetic and hair removal services are self-pay, meaning they can raise their prices. However, businesses that go bankrupt in this model often face intense competition between large chains, which leads to price wars.
It’s the same as when large beef bowl chains were engaged in a price war in the past.
Similarly, during the real estate and resort bubbles, golf courses and resort hotels that used membership ticket sales went bankrupt.
I believe they spent too much money on advertising costs.
Customers do not increase infinitely.
There is a similar business model in the form of retirement homes offering lifetime use rights.
Nowadays, the depreciation of entrance fees is limited and has become safer, but during the collapse of the real estate bubble, many retirement homes also went bankrupt.
You should never get caught up in a money game.
In medical and care services, we earn fees on a daily basis.
I am dedicated to running a cash business.
Many entrepreneurs make a fortune quickly and end up destroying themselves.
Such people gather in Ginza, floating in the success they’ve achieved.
Unfortunately, I’ve witnessed the downfall of many so-called successful people.
Medical, care, and education services are similar to farming.
Every day, maintenance and care are required, like working in a rice field.
Now, let’s work again today.
Blood sugar 150. Today, I will travel to both the east and west. December is a busy month for business owners.
Koyama G Representative, Thunderbird Representative, Vice President of Health Station,
Yasunari Koyama