Adding direct- any bonuses running right now?

[Raenstoirm]

The members website only talks about poly. Anything going on for wilderness? Also what are the prices right now? I don't want to call my guide. lol

 

[_auroraborealis_]

$170-something. The incentives kick in at 150 points or more.

 

[Gizmo74]

We bought 200 direct Poly last week for $160. This includes the incentive. I think the regular rate was $175. 200 points was the start of the betters savings. I think at 150 points some savings come into account but not much.

The more you buy the better incentive.

 

[Gizmo74]

Almost forgot, there was another deal with less $ incentive but you got 100 SSR points for a one time use. We opted for the more money off since we are not planning going back to Disney this year and would not have been able to use the 100 SSR points

 

[KAT4DISNEY]

DVCNews usually keeps an update of pricing and promotions

http://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

 

[kboo]

Crazy, adding on at VGC, VGF and BLT are $185pp! More than buying at Poly!

 

[_auroraborealis_]

Crazy, adding on at VGC, VGF and BLT are $185pp! More than buying at Poly!

Keep in mind they get most of these via ROFR, so there are the repurchase costs and admin costs involved. So they jack up the direct price. When selling "new" points at CCV and Poly, they don't have those additional costs.

 

[Raenstoirm]

DVCNews usually keeps an update of pricing and promotions

http://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

I didn't realize that existed. Thanks!

 

[Wakey]

Keep in mind they get most of these via ROFR, so there are the repurchase costs and admin costs involved. So they jack up the direct price. When selling "new" points at CCV and Poly, they don't have those additional costs.

Yes but all it is, is a quick flip of something they have ALREADY made their profit on when sold the first time. The margins on a flip are huge. When they first sell they have all the costs of the build etc. A quick flip is even more profitable I'd suggest as all it is is closing (unless seller paying- even better) and admin costs. Often for $10000+ . Literally counjouring money out of thin air. I wish I had a piece of the action with this business model....

 

[mustinjourney]

Yes but all it is, is a quick flip of something they have ALREADY made their profit on when sold the first time. The margins on a flip are huge. When they first sell they have all the costs of the build etc. A quick flip is even more profitable I'd suggest as all it is is closing (unless seller paying- even better) and admin costs. Often for $10000+ . Literally counjouring money out of thin air. I wish I had a piece of the action with this business model....

yes -- it's a quick profit...but if the direct purchaser they sell to would have bought CCV or Poly otherwise, then the $40 per point profit they get on VGF is significantly lower than the profit they'd make on the new build. Don't forget, even if they buy BLT for $115 a point and sell for $185, their profit isn't $70 a point. There are a lot of built in costs associated with the transaction (they have to pay the closing costs and MFs on those ROFR contracts if that is what the original buyer agreed to), so their real cost is closer to $125 a point. Then there are the costs of sales people and doing additional paperwork.

If the direct buyer is only interested in a sold out resort -- then yes, it is better than nothing. But if the sales guides are 100% busy selling the new resorts, you don't want to take them away from selling a larger profit item. It's similar to companies requiring a certain IRR before a project gets the green light. Yeah -- some projects would have been profitable, but if they aren't as profitable as another option, then you don't tie up the resources.

Not to mention, if you have a million points* to sell on CCV, it's best to sell those as quickly as possible so that you're not paying all of the maintenance costs yourself.

*I have no idea how many points are available -- I just pulled this number out of the air.

 

[Wakey]

yes -- it's a quick profit...but if the direct purchaser they sell to would have bought CCV or Poly otherwise, then the $40 per point profit they get on VGF is significantly lower than the profit they'd make on the new build. Don't forget, even if they buy BLT for $115 a point and sell for $185, their profit isn't $70 a point. There are a lot of built in costs associated with the transaction (they have to pay the closing costs and MFs on those ROFR contracts if that is what the original buyer agreed to), so their real cost is closer to $125 a point. Then there are the costs of sales people and doing additional paperwork.

If the direct buyer is only interested in a sold out resort -- then yes, it is better than nothing. But if the sales guides are 100% busy selling the new resorts, you don't want to take them away from selling a larger profit item. It's similar to companies requiring a certain IRR before a project gets the green light. Yeah -- some projects would have been profitable, but if they aren't as profitable as another option, then you don't tie up the resources.

Not to mention, if you have a million points* to sell on CCV, it's best to sell those as quickly as possible so that you're not paying all of the maintenance costs yourself.

*I have no idea how many points are available -- I just pulled this number out of the air.

Not sure what profit Disney make per point on the initial sale. Big builders will typically make well under 10% net profit on a new build. Suspect Disney make a lot more than that, but don't know figures. However build costs and costs for aquiring property into DVD will be high I'd have thought. If they flip a BLT contract, they make circa 70% gross margin after closing costs. Flip a saratoga it's more like 80%. I'd be surprised if they are making bigger margins on the initial sale, compared to a direct resale.

 

[mustinjourney]

Not sure what profit Disney make per point on the initial sale. Big builders will typically make well under 10% net profit on a new build. Suspect Disney make a lot more than that, but don't know figures. However build costs and costs for aquiring property into DVD will be high I'd have thought. If they flip a BLT contract, they make circa 70% gross margin after closing costs. Flip a saratoga it's more like 80%. I'd be surprised if they are making bigger margins on the initial sale, compared to a direct resale.

They have full waitlists at VGF and VGC -- they could easily ROFR every single resale contract and service their waitlists for instant profit...however, they don't do it. So there HAS to be a reason. The mouse doesn't pass up money because it's lazy.

it's likely because it doesn't want to trip over itself to pick up quarters when there are $10 bills lying around.

 

[KAT4DISNEY]

Not sure what profit Disney make per point on the initial sale. Big builders will typically make well under 10% net profit on a new build. Suspect Disney make a lot more than that, but don't know figures. However build costs and costs for aquiring property into DVD will be high I'd have thought. If they flip a BLT contract, they make circa 70% gross margin after closing costs. Flip a saratoga it's more like 80%. I'd be surprised if they are making bigger margins on the initial sale, compared to a direct resale.

I recall with one of the builds not which one - might have been BLT - and some numbers were making the rounds that if I am remembering correctly placed the build costs somewhere in the mid 30's/pt. Disney already owns the land where they're concentrating on building thanks to Walt so no more acquisition costs for that. I don't know if Disney does any charges for the land lease but either way that's simply an internal shift. And the recent PVB and CCV where they are converting? Gotta be gold.

 

[LAX]

As already mentioned by few prior posts, it's likely that selling new resorts are much more profitable for DVD than flipping resales. If flipping is anywhere near as lucrative as selling new builds, I think DVD would likely hire more people to run a "resale arm."

LAX

 

[Wakey]

They'll have to pay a lease I imagine, but know what you mean about it all being under an umbrella company. Even if they are making such huge sums on timeshares in the first place, the flip is minimal work and effort, still for profit margins that would make 99% of businesses weep. Not only do they load the contract with (mostly) 30-100% mark up, but they also often sell it (see comptroller website) with a loan with 10% interest, with zero risk of default and recovering the assets. It MUST be highly profitable, even if they are earning extraordinarily margins on the first sale, which does make it curious if they have a long waiting list they don't buy up every contract, albeit those with the long waiting list are the ones with less difference in resale V direct prices.

 

[mustinjourney]

They'll have to pay a lease I imagine, but know what you mean about it all being under an umbrella company. Even if they are making such huge sums on timeshares in the first place, the flip is minimal work and effort, still for profit margins that would make 99% of businesses weep. Not only do they load the contract with (mostly) 30-100% mark up, but they also often sell it (see comptroller website) with a loan with 10% interest, with zero risk of default and recovering the assets. It MUST be highly profitable, even if they are earning extraordinarily margins on the first sale, which does make it curious if they have a long waiting list they don't buy up every contract, albeit those with the long waiting list are the ones with less difference in resale V direct prices.

My guess is their sales team is operating at close to 100% capacity.

They are probably told to sell the new stuff and only sell sold out resorts when they have nothing else to do.

There's also the chance that the CMs have incentives that are better for new sales rather than flips.