Does Disney treat those who buy resale differently?

[bighoo93]

Originally Posted by The King of Timeshares

from DVD's standpoint they are irrelevant other than if DVd can somehow get them to buy and i think you over estimate the size of the group that would not buy if resale were not an option.

It would be pretty unusual for people to be indifferent to paying twice the price for the same thing. If almost everyone who purchased resale DVC would have made the same purchases direct, that would be unexpected and there should be some reason very particular to that situation that makes it stand out from just about anything else.

[bighoo93]

Originally Posted by Caren90

And in some respects, Disney has gained you as a repeat customer ( park tickets, dining, merchandise...).

Exactly. Lodging is a relatively small portion of the total Disney vacation bill in my case, and probably for most people.

[heynowirv]

Originally Posted by Caren90

And in some respects, Disney has gained you as a repeat customer ( park tickets, dining, merchandise...).

I bought resale as well and knew that Disney would still be receiving some of my future dollars (on the items stated above) on a long term basis.

Disney would prefer the whole dollar (direct sale), but they will never refuse a smaller cut of the $$.

Stephen

[Brian Noble]

We truly do not know why DVC placed resale restrictions; unless I have missed something everything posted here has been conjecture as to their motives.

Do we "know" it, as in, we sat in on the meeting at which it was discussed? No.

But, it doesn't take a rocket scientist to figure out that DVD has applied these restrictions to give Guides some way of countering the tour guest who happens to know that resale exists, and has a vague sense of the market. The fact that it solved the monetization problem was just a bonus for DVCMC. The *other* way to solve the monetization problem (and a much easier one) would have been simply to raise the required points for DC, ABD, or DCL bookings.

And in some respects, Disney has gained you as a repeat customer ( park tickets, dining, merchandise...).

It is important to understand how Disney, as a company, works. Each unit, and each division within each unit, has to answer to its own profit/loss goals and performance. In many respects, the company is operated as if it were several different companies. Granted, they have complimentary goals, but still, DVD gets credit only for DVC sales, not in-park spending by DVC Members, etc.

On the broader point: clearly, not everyone who bought resale would have instead bought from the developer if resale did not exist. But, some fraction would. More importantly, some fraction of tour guests are aware of the resale market generally, and may initially balk at the differential. The various restrictions generate just enough FUD (Fear, Uncertainty, and Doubt) that some buyers are pushed over the edge. Not the most informed of them, but some.

A truly informed buyer would never purchase from DVD directly in the current market. The resale restrictions are meaningless economically---the exchange options are almost always cash-flow negative vs. renting out points and using the cash for the hotel, tour, or cruise you desire. The only other advantage is time to close the purchase, but that's an advantage measured in months---not long enough to justify the premium for an RTU with a lifetime still measured in decades.

Finally, there is one system that has effectively completely eliminated resales. Diamond sells "points", but only as part of a trust, backed by an underlying deed. If you sell the interest to someone else, it is removed from the trust, and you only have the rights of the underlying deed---either a single resort, or a small pre-existing resort group, but not the entire Diamond portfolio. Fiendishly clever.

[ELMC]

Originally Posted by bighoo93

It would be pretty unusual for people to be indifferent to paying twice the price for the same thing. If almost everyone who purchased resale DVC would have made the same purchases direct, that would be unexpected and there should be some reason very particular to that situation that makes it stand out from just about anything else.

You keep on referring to people who paid "twice the price" but what you don't realize is that only describes people buying under today's market conditions. Historically, the gap between direct and resale prices has never been as big as it is today. There are many, many people who have bought direct for prices very close to what today's resale prices are. Don't believe me? Check out this link of historical direct prices:

http://www.disboards.com/showthread.php?t=2532406]DVC Post #5


You are also making a misstatement when you refer to resale and direct purchases as the "same thing". They're not. Regardless of what we think about point exchanges for DCL, the Disney Collection and the like, the fact of the matter is that direct purchasers can do them and we as resale buyers cannot. I think you are making broad generalizations based on a very small sample size. Yes, there are some people for whom the choice is "resale or nothing". You seem to be one of those people and quite frankly, so am I. That being said, there is a larger group of people who are asking the question "direct or resale?". If those people choose to buy resale, that is indeed a direct purchase that a salesperson loses.

[Dean]

Originally Posted by JaimeA

I am one in that irrelevant group. We loved DVC but did not feel it was worth 35k for the size contract we wanted. So I bought it resale for half. Disney did not lose my sale because I would never buy direct at those prices.

Sent from my iPad using DISBoards

and that will be true for some but there are a significant portion of members that buy resale who would buy retail under the right circumstances and for many of them, just not having a viable resale option will be enough to send them Disney's way. From a sales standpoint it's simply a numbers game.

Originally Posted by bighoo93

It would be pretty unusual for people to be indifferent to paying twice the price for the same thing. If almost everyone who purchased resale DVC would have made the same purchases direct, that would be unexpected and there should be some reason very particular to that situation that makes it stand out from just about anything else.

Not indifferent, receptive. IMO, there are very few situations where it's advisable to buy retail given the current circumstances but those circumstances can (and likely will) change over time.

[rmcildw2m]

in all my times of calling in to reservations ,I have never been treated rude. Even though i have bought all 3 contracts thru resale .

[heynowirv]

Originally Posted by rmcildw2m

in all my times of calling in to reservations ,I have never been treated rude. Even though i have bought all 3 contracts thru resale .

And wasn't that the question asked by the OP? Boy people can get lost in tangents ,can't they?

[beadel]

We purchased a DVC property resale a couple months ago. We went on a 2 week DCL cruise from December 9 through the 23. As DVC members we were treated very well and the same as other DVC members while on the cruise. We were included in all of the activities and perks offered to DVC members. I am sure they knew we purchased resale but were treated very well by the DVC sales staff.
Today, we toured the DVC center at Saratoga Springs. We were treated by welcome guests and given a great tour. While they looked us up and probably knew we purchased resale, there was no mention of resale.
I am happy we did not have your experience and sorry you were treated that way.
Kitty and Jim

[LindsayO22]

What are the limitations of buying a resale? Are there certain perks or benefits unavailable to resale purchase?

[chalee94]

the only current restrictions:

Disney Vacation Club has announced a policy that limits access to certain Member Getaways exchanges for Ownership Interests purchased on the secondary market (also known as the re-sale market).

Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI exchanges, Club Cordial and Club Intrawest.

The affected collections are special Member benefits programs offered by Disney Vacation Development, Inc., and are not part of Members' Ownership Interests. That said, Members who purchased on the secondary market prior to March 21, 2011, may use those Vacation Points for all Member Getaways.

basically, no trades for cruises or wdw hotels like the poly if you bought resale - those trades are very expensive anyway and are generally considered to be poor value for your money.

resale purchasers can still trade for any DVC resort (subject to availability at the 7 month window) and can trade out through RCI for other timeshares (not generally a great value either, though).

[TJLGB]

I just bought a used dvc and every time I call member services they mention oh you bought a resale.
The way I see it they are lucky I bought something and are paying my dues so they have a job. What if know one bought used member service?!

[disneynutz]

Originally Posted by TJLGB

I just bought a used dvc and every time I call member services they mention oh you bought a resale.
The way I see it they are lucky I bought something and are paying my dues so they have a job. What if know one bought used member service?!

Common misconception, someone will always own the contracts once they are sold by Disney. You stop paying your dues and you forfeit you contract to Disney and they resell the points to the next guy.

That IMO is the biggest problem with the DVC, it's a monopoly for Disney with little incentive to do better.

Bill

[Dean]

Originally Posted by TJLGB

I just bought a used dvc and every time I call member services they mention oh you bought a resale.
The way I see it they are lucky I bought something and are paying my dues so they have a job. What if know one bought used member service?!

I think it's common that individual owners often overestimate their value to the system. Unless enough people stop paying to affects sales and other profits, who owns and pays make no difference to the system.

[TJLGB]

The point I'm trying to make is it that as a customer who pays yearly dues is it shouldn't matter if I bought my dvc new or resale customer service should be equal. I didn't mention stopping dues