DVC RESALES
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Old 11-12-2012, 01:42 PM   #11
bighoo93
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Join Date: Dec 2011
Posts: 367

Quote:
Originally Posted by Cruznmore View Post
But they are already doing the marketing for Aulani, AKV, and BLT. There is no marketing around any other resort (GFV soon) in any of the docs I have received. We did get 1 piece of info on SSR in our packet because I specifically asked for it.

Unless someone else has seen something, there is no additional $$s spent on marketing any resorts other than the new ones.
I pretty much agree with this. The larger point that must be understood is that DVC is marketing DVC. The resorts are a component of marketing DVC. For financial reporting and analysis, it makes sense to subtract your total marketing costs from your gross revenue or look at it as a percentage. But I think that is leading people to conclude that marketing "old" resorts have a specific cost associated with them.

Having inventory of "old" resort points on hand just allows them to capture sales to people who are priced out of the new resorts or want to add to their existing points at their home resort, or whatever other reason. These are sales that would otherwise be lost (either to resale or just never made). But DVC was already spending on this marketing. They do not incur marginal marketing costs in order to make that sale. That cost is already sunk, and if the customer is willing to spend $100 for an OKW point but not $150 for a new resort point, then that amounts to "lost" revenue if they don't have those points available for sale. The marketing cost is still spent (I'm not going to factor in cost of ice cream...).
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