Dr. John Happel | Oct 14, 2018 | 0
Why Laser Hair Removal Pittsburgh Businesses Go Bankrupt
A True Story About How Laser Hair Removal Franchises Go Broke
Advertising Works for a While Then Bad Laser Franchises Implode
Let’s start with the example of American Laser Skincare. It was a national franchise opened in 2001 with 132 offices with a satellite in Pittsburgh.
If you type their name into an internet search on Google, you’ll learn that they closed their doors for good in November 2014.
Another laser hair removal company that went bankrupt was Premier Laser Spa. They reorganized via Chapter 11 bankruptcy and changed their name to Laser Rx.
Read Premier Laser Spa Yelp reviews to get a feel how this place treated its Pittsburgh customers.
Here’s the rest of the American Laser Skincare story:
They offered a life time guarantee. That’s worthless now.
They made you sign a contract for nine treatments costing thousands of dollars.
People with unused treatments when they went bankrupt kissed their money goodbye forever.
Bet Your Bottom Laser Hair Removal Dollar
We flock to perceived quality especially if it is expensive.
They guaranteed results. The catch was if your hair came back, you paid even more. It was a Ponzi scheme since laser reduces hair.
That’s down the drain.
“Free” touch ups were a joke but the clients weren’t laughing. The fine print says there’s an additional charge.
Price gimmicks abounded with front loaded packages and phony discounts with areas thrown in for “free”.
They were scammers.
They went bankrupt.
People were left holding the bag for unused packages that they had prepaid.
The problem was that not everyone required nine treatments. The high upfront costs to cover the cost of future touch ups were not always needed.
Requiring people to pay upfront was a huge problem. People thought that they were getting a deal by buying in bulk like at Costco’s or Sam’s Club.
Lifetime guarantees are disingenuous especially when you read the fine print and find out that they are not free but sold at an additional “discounted rate”. So much for reading the fine print. People believed what they were told which wasn’t the truth.
Customers Were Shocked When the Laser Hair Removal Doors Were Closed Forever
The Wall St. Journal reported that there was no warning to the American Laser Skincare bankruptcy announcement.
The workers were shocked.
Carl was an aesthetician at the clinic at West 133rd Street and Metcalf Avenue in Overland Park, KS.
She said she’s still shocked over the news. “We couldn’t believe what we were hearing. They gave us a couple of hours and said security would come and take our keys and secure the building and we were to be gone,” she said.
Customers were left in a lurch.
They were in shock because the average client was out thousands of dollars.
These are numbers that would make Bernie Madoff blush.
The company blamed it on the recession which has occurred six years earlier in 2008.
In a previous post on their website, they said, “The entire industry has been affected by the long-running economic downturn, and our company simply could no longer afford to continue operating.”
People are still paying off their bills for unused treatments from the finance company that American Laser used.
Sue Collins and April Eiland were among those who didn’t expect to see that happen. Eiland was the one who told her friend to give the clinic on Orchard Lake Road a try.
“Now I’m embarrassed … about referring her when she got robbed just as well as I did,” Eiland told Ruth to the Rescue.
American Laser Skincare owed more than $125 million dollars and finally filed chapter 7 liquidation after a previous Chapter 11 bailout from another company, Versa.
The people who prepaid for packages are screwed.
Conclusion – The Flotsam and Jetsam of Laser Hair Removal
Unbelievably, other laser national franchises in Pittsburgh still exist.
They survive on heavy advertising which is a recipe for disaster when people find out the truth.
Same old, same old.
Laser Rx is the reincarnation of Premier Laser Spa which filed for chapter 11 bankruptcy on October 19, 2015.
They advertise for other aesthetic services as well because doing laser hair removal alone is not enough to maintain their financial viability.
Cellulite reduction, body contouring, fat reduction, and skin tightening and rejuvenation have been added to service to try to sustain their accounts after their bankruptcy restructuring.
Like American Laser Skincare, packages are part of the deal. Be aware that angry customers of their parent company in other cities who started Facebook pages.
They were entitled, “Victims of Premier Laser Spa” and others when they had to drive to nearby cities or couldn’t get refunds.
Ideal Image started out initially as a laser hair removal company.
They also had to branch out into the same aesthetic services as Laser Rx to survive. They have their own problems. Search Ideal Image complaints to learn more.
It is recommended when considering laser hair removal to see a specialist.
Not a jack of all trades.
When considering laser hair removal in Pittsburgh, we strongly recommended not to prepay for any service.
That means don’t buy packages for your financial safety.
Consider the thousands of people who were clients of these companies and never considered that they would have to ever contact and pay for an attorney.
They lost even more money for an attorney to try to recover money spent on these prepaid and unused laser hair removal treatments.
Call us to at 724-969-0600 learn how to buy affordable laser hair removal which is done in the safety of a trusted doctor’s office for over 18 years.
No contracts. Pay as you go. Thats safer and you save money too.