Any idea why Disney's minimum buy-in is 160 points?

[Dman67]

Hi gang! I'm just wondering why Disney has selected 160 points at the minimum buy-in for new DVC contracts. Anyone care to speculate or if you know the real reason do tell.

 

[DVCLiz]

I don't know if it's the only reason, but it takes 160 points to trade into Interval International for a 1BR in low season. Maybe they decided to sell all new contracts so that the trading option would be there, instead of having people come up 10 points short when they wanted to trade.

I haven't ever traded out with my points, so I don't know if a lot of people do it, but that could certainly be one reason.

 

[chalee94]

DVCLiz's reason sounds good.

more speculation:

it costs more to administrate 40,000 50 pt contracts than 10,000 200 pt contracts. therefore, you want to set the bar reasonably high to keep administration costs down.

also, 160 pts barely gets you 7 nights in a 1-BR in the cheapest seasons...and won't even get you that at many of the resorts. so from a practical standpoint, most users will need at least that many points to benefit.

edited to add: i think disney has set the minimum at 200pts and 150pts in the past, so they have experience that may suggest that those points were too high or too low.

 

[Chuck S]

I'm really not sure why they set the minimums they do. Certainly the II trade is as good a reason as any. Or perhaps that is what the average new purchaser was buying anyway. Remember the original minimum to buy OKW was 230 points.

 

[dianeschlicht]

Just remember that originally, the buy in level was 230!

 

[Dman67]

Just remember that originally, the buy in level was 230!

Thank goodness for resales!

 

[MrsNick]

I don't know if it's the only reason, but it takes 160 points to trade into Interval International for a 1BR in low season. Maybe they decided to sell all new contracts so that the trading option would be there, instead of having people come up 10 points short when they wanted to trade.

I haven't ever traded out with my points, so I don't know if a lot of people do it, but that could certainly be one reason.

Not splitting hairs...A 1 BR in high season is 160 points. FWIW it is 124 points in low season and 144 points in mid season.

 

[DVCLiz]

Not splitting hairs...A 1 BR in high season is 160 points. FWIW it is 124 points in low season and 144 points in mid season.

Oh, thanks! I was doing that from memory, and I just remembered 160 and 270 were the 1 and 2 BR numbers. Must have been daydreaming about a high season trip when I memorized those!!!

 

[Dean]

The sales minimums have nothing to do with II, it has everything to do with DVD's balance of sales and profits. The initial buy in was 230 and then it was reduced 3 times down to 150 to spur sales to those that couldn't afford the larger amounts but could swing the lessor ones. The increase is certainly a move to simply sell more points to fewer people to equal more profit. It is not more complicated than that. The increase in the minimum buy in has been a long time coming and I suspect we'll see another or possibly two in the next 2-3 years. Most timeshares that sell by points do so by what it takes to reserve a full week.