California Wow Going Bust Like In Korea?

[shotover]

^Or very cleverly went bankrupt and sold all of their capital to a 'competitor' under a different name who didn't have to continue to honour the contracts- which is what I figure will eventually happen. Give me 2 more years of it and I still come out more or less ahead, though.

Or as he has been doing in Pattaya, selling lifetime memberships, "My name is XXXX".

I have played with and crunched the numbers for selling an unlimited number of lifetime memberships and there is no way I can make it work in the long term. Sell a few, sure to get a capital injection but once past a critical level, you have destroyed your future income flows and your business model moves from profitability to one where it is impossible to maintain figures in the black even after cutting services.

It has been a common business practice with US fitness centers to start aggressively selling lifetime memberships when profits start dropping; Then the business is sold to another operator, who does not honor the lifetime memberships issued by their predecessor.

[peteryeah]

I was in at the Wow California at Pattaya today . ,, , the deal was the BLACK Card membership all branches in Thailand for 14.000 THB for 1 year and for renewal it was 100 THB .,,

This is not a life time card..., BUT you can renewal if every year for 100 THB ..... HMM i cant see the different from a life time card ?! . . what are i missing . . .

anyone tried to renew? hassle free or some wierd catch in the contract?

[trogers]

^Or very cleverly went bankrupt and sold all of their capital to a 'competitor' under a different name who didn't have to continue to honour the contracts- which is what I figure will eventually happen. Give me 2 more years of it and I still come out more or less ahead, though.

Or as he has been doing in Pattaya, selling lifetime memberships, "My name is XXXX".

I have played with and crunched the numbers for selling an unlimited number of lifetime memberships and there is no way I can make it work in the long term. Sell a few, sure to get a capital injection but once past a critical level, you have destroyed your future income flows and your business model moves from profitability to one where it is impossible to maintain figures in the black even after cutting services.

It has been a common business practice with US fitness centers to start aggressively selling lifetime memberships when profits start dropping; Then the business is sold to another operator, who does not honor the lifetime memberships issued by their predecessor.

what does this term 'lifetime membership' means?

Your life? Or the life of that business?