150 Buy In

[Disney Kim]

I was just wondering, why Disney only sells 150 (0r 160 now) points, no less?
What if someone wants to buy only 100, Disney won't sell that many? The only option is re-sale?? Just curious

 

[jgus]

This is correct

 

[bwvBound]

Going only by a hunch -- the minimum entry point is likely influenced by a number of factors:

• Sales Effeciency. Given the work required to close a new customer -- what number leads to the best use of DVC's sales time? If it takes the same amount of time to sell 100pts, 150pts or 160pts to a new customer ... which would you (as DVC) set as the goal?
• Usefulness. Which sale offers the greatest service to a new buyer: 100pts or 150pts? 150pts will secure a studio for a full week across several DVC properties most of the year. A new buyer with only 100pts may be easily disappointed with the choices offered by the smaller contract. (Don't want disappointed new customers!)
• Not too high. Related to the first point of effeciency -- if the entry point is too high it may discourage sales (decrease the efficiency).
• Account Maintenance (as related to mailings, invoicing, etc). Basic services must be supplied to all owners. Which would you prefer to support: 1000 customers with 25pts each ... or 25 customers at 1000pts each?
• Exposure as related to Discounts. Thinking of owner discounts (10-20% off meals, $100-$125 off annual passes, etc.) -- revisit the previous question. Which would you prefer to support: 1000 customers with 25pts each or 25 customers with 1000pts each?

To your second question: Yes -- the only way to purchase a smaller contract is through the resale market.

 

[swilson2000]

The was it was explained to me is Disney sells at min 150 from the start is due to their points and as their points per night/week go up over the years they will increase minimum buyins when needed so that everyone can get atleast 1 full week a year.

 

[jgus]

They raised it this week to 160 point min. Also, we bought 160 even though we could have got 150. Our reason was there is a lot more you can do with 160. That is the II 1B trade amount. And, if you bank and use 2 years points. There are a bunch of situations where you need just over 300 points So that is why we choose 160 over the old min of 150.

 

[bwvBound]

The was it was explained to me is Disney sells at min 150 from the start is due to their points and as their points per night/week go up over the years they will increase minimum buyins when needed so that everyone can get atleast 1 full week a year.

Hmmm. Conflicts between that explanation and my understanding:

• The minimum entry point started much higher than 150 originally. I believe 150 is the lowest it has ever been and that moving to 160 is the first "increase" for the entry point.
• The "points per night/week" don't go up over the years. While point distribution may vary slightly across weeks/seasons -- the total annual points required for any given [resort+unit size] remains the same year to year.
• The historical "points per night/week" haven't always increased when new properties were introduced. While a studio in Adventure season is 80pts at OKW and 104pts at BCV (an increase) -- it drops down to 95pts at SSR.

Hmmm...

 

[bwvBound]

An entirely different possibility ... setting a reasonably high minimum helps discourage future bad sales. If the product were too easily purchased (trivial consideration) -- it might be equally easy to walk away from later down the road. The club would then address a higher rate of bad debt and collections.

Related, owners who can barely afford the minimum entry are the hardest hit when dues are increased or a special assessment is required. Better to raise the bar a bit for everyone's comfort.

 

[JimMIA]

Hmmm. Conflicts between that explanation and my understanding:

• The minimum entry point started much higher than 150 originally. I believe 150 is the lowest it has ever been and that moving to 160 is the first "increase" for the entry point.
• The "points per night/week" don't go up over the years. While point distribution may vary slightly across weeks/seasons -- the total annual points required for any given [resort+unit size] remains the same year to year.
• The historical "points per night/week" haven't always increased when new properties were introduced. While a studio in Adventure season is 80pts at OKW and 104pts at BCV (an increase) -- it drops down to 95pts at SSR.

Hmmm...

I think you are correct on all points. Also, I believe some of the new AKV options may also be lower points costs per night.

And yes, OP -- if you don't want to buy at least 160 points, resale is your only alternative.

 

[pilferk]

I think, in all likely hood, it's a matter of economics for Disney. 150 points (160 now) is, likely, a minimum set by their actuaries to ensure they make money off of DVC members. I'm sure there may be contributing reasons, too...but I'd be relatively secure in the assumption that it's as much about the bottom line as anything else.

 

[vandy]

Isn't 160 points now the minimum to trade into Interval? Disney is then selling the minimum that a member needs to use their points outside of DVC. By sticking to the lowest minimum, more people may be convinced to buy.

 

[mikeandkarla]

160 points is the maximum for a trade in a peak season. 120 pts offpeak, 140 pts regular season.

 

[bwvBound]

160 points is the maximum for a trade in a peak season. 120 pts offpeak, 140 pts regular season.

... for a 1BR unit.

 

[dianeschlicht]

First of all, 150 hasn't been the "minimum buy in from the begining"....That was 230 points when DVC started selling, and didn't change until a couple of years later, when it changed to 210 minimum buy in. It didn't go to 150 minimum buy in until BWV started selling. When we purchased, our guide explained that buying in at fewer than 160 severely limited the flexibility of the program, since a 1 bedroom exchange would need 160 points in high season. That meant that 150 annual points wouldn't quite do it. For that reason, we did the 230 original buy in. I'm quite sure DVC did not expect folks to only use the lowest point days when they first opened. I'm quite sure they expected most folks to use DVC much like other timeshares were used....by the week. That isn't what actually happened, and I suspect when they changed to 150 point minimum, they found those buying in were "skimping" by only using the 5 weeknights and skipping weekends.

I'm glad they are starting to get back to more reasonable minimum buy-in numbers. It seems silly to sell less points than could be used for at least the minimum exchange rate.

 

[goofymax]

Just to let you know that when we bought at BWV in late 2000, there was a minimum of 170 points. We purchased 200 and have added 250 since. It's all good!