BLT $140 - no more incentives

[CMOORE185]

But the question is are people buying the same sizes of contracts we did at the cheaper price and if most of them are getting smaller contracts will they enjoy it as much? We almost always have enough for small impromptu trips and we generally take friends or family with us every other year. If I only had enough for us and a single trip it would suck some of the joy out of ownership.

I agree with this point, alot of the enjoyment is sharing it with others.

 

[dizfan]

Folks, you have to remember that we're only talking about the last few points at BLT. There are some people who *have to own there* (or think they do). There are some people who don't know about (or don't want to deal with) the resale market. Disney is simply positioning themselves to get the most they can out of people who are in both camps. So, assuming the original report is true---and I have no reason to doubt it---this is just a way to squeeze a few more dollars out of the last few BLT points. It doesn't matter if you or I would not buy at that price. It doesn't even matter if *most* people would not buy at that price, as long as *someone* will.

Well put Brian.

With BLT at $140, I suspect (no evidence) that guides may explain that you could buy at SSR or AKV and save considerable money. Guides may also mention that a person can book other locations at 7 months.

As Brian points out, it's about profit. Disney is happy if someone buys BLT at $140. They are also happy if their inventory at the other resorts is bought without having to increase the incentives.

 

[BWV Dreamin]

Financing is available through some, if not all brokers. I just checked some websites.

That must be relatively new. I know in 2007 Timeshare store didn't finance, but do now. I still don't think Jaki & **** do but they may also have changed. I hope so because at these prices few people will look to use a home equity loan in this current housing environment.

 

[htmlkid]

Folks, you have to remember that we're only talking about the last few points at BLT. There are some people who *have to own there* (or think they do). There are some people who don't know about (or don't want to deal with) the resale market. Disney is simply positioning themselves to get the most they can out of people who are in both camps. So, assuming the original report is true---and I have no reason to doubt it---this is just a way to squeeze a few more dollars out of the last few BLT points. It doesn't matter if you or I would not buy at that price. It doesn't even matter if *most* people would not buy at that price, as long as *someone* will.

Its not really the last few points. My understanding is that out of 5.7 million points being sold on BLT there is almost 796,960 points still unsold. Thats still alot of points. Also sales at BLT dropped 15% forthe month of May, and they are raising the prices.....Mickey has some pair!!!!!

BTW not a bad profit. They paid like $87million for the building to be built at an average of $100 a point sold its $573 million gross and a net profit of $486 million. Not to mention ongoing rental profit and guaranteed customers for the parks.

Mickey is an amazing businessmouse in that respect!!!!

 

[Granny]

BTW not a bad profit. They paid like $87million for the building to be built at an average of $100 a point sold its $573 million gross and a net profit of $486 million. Not to mention ongoing rental profit and guaranteed customers for the parks.

Mickey is an amazing businessmouse in that respect!!!!

Actually, it's even better than that. In addition to the profits above, they've also made Contemporary Resort more profitable by charging BLT some of the operating costs there.

Whoever thought of DVC should be getting paid some major big bucks by Disney.

 

[tjkraz]

Its not really the last few points. My understanding is that out of 5.7 million points being sold on BLT there is almost 796,960 points still unsold. Thats still alot of points. Also sales at BLT dropped 15% forthe month of May, and they are raising the prices.....Mickey has some pair!!!!!

Relatively speaking, the 800k remaining isn't terribly large.

Also that figure wouldn't include any sales coming out of the 2 waves of webcasts in May and June. None of those contracts would have been recorded by the end of May.

The deeds posted in May did represent a down month but June and July will be better. Wouldn't surprise me to see them record another 300,000 points in those two months combined.

BTW not a bad profit. They paid like $87million for the building to be built at an average of $100 a point sold its $573 million gross and a net profit of $486 million.

It's commonly held that sales and marketing costs represent about half of developer overhead in the timeshare industry. However, DVC also gains interest income from buyers who finance the purchase.

The final "profit" calculation is pretty complex, but still a very nice chunk of change.

 

[dizfan]

Its not really the last few points. My understanding is that out of 5.7 million points being sold on BLT there is almost 796,960 points still unsold. Thats still alot of points.

DVD can only sell a maximum of 98% of the points, so that total is too high.
wdrl's article on DVCNews.com shows 680,759 points left.

Depending on the interpretation, if DVD keeps the sales units on the first floor, the total also drops about 59,000.

Also, as Tim points out the sales don't include the webcast. In the past, many people get off the fence and buy/add-on during the last couple days of a sale or before a price increase. Look for the webcast sales to be in the July and August numbers. In the August update (early September), we'll have a better picture of the results of the webcast.

Also sales at BLT dropped 15% forthe month of May, and they are raising the prices.....Mickey has some pair!!!!!

Keep in mind SSR has been priced at $99/pt. Over the past couple years, any WDW property priced below $100/pt sees stronger sales and the others tend to see a slowdown. For example, AKV sales have slowed since SSR was priced significantly lower. They periodically change the sales to move different inventory.

 

[csharpwv]

Everyone is getting all excited about DVC Villas at the Grand Floridian.
I'm all for getting excited, until you look at the facts.

The facts are as follows -
- BLT is now at $140 Per Point ($22,400 for 160 points)
- The point allocation at BLT is higher than any other on site resort
- The location of BLT is a premium location, and the only one within reasonable walking distance.
- BLT is on the monorail line.
- BLT is a completely different DVC resort, from its exclusive feel, to the decor, to the location, to the architecture, to Disney's return to a DVC paired with an established resort.

Now, you might ask - what does that have to do with the Grand Floridian?

OK - where to start?

-If you think $140 per point is high, wait until the sales price comes out for a possible GF-DVC.
-If you think the point allocation for BLT is high, wait till you see the point allocation for the Grand Floridian!
- The GF is Disney's Flagship resort - the best of the best - the finest of the fine. What do you think a Grand Villa over Christmas week will go for? Yeah, that's what I thought!
- Do you think it's a coincidence that DVC has just given their logo a 'high end' make over?
- the GF is on the Monorail line - and the only resort with more restaurants than any other resort on property. Have you counted the number of restaurants at the GF?
- The Grand Floridian doesn't have an outstanding theme, the GF is perceived by most as stuffy, ritzy, and not a place a lot of folks feel comfortable going dressed in park attire.

Do you think all of that is going to add up to a horse of a different color?

I do - I think once DVC announces Villas at the Grand Floridian - DVC is going to change - the marketing is going to change - and the price is going to change.

I think DVC realized a lot when it built Saratoga Springs - and it realized even more when it built BLT. It realized what it had forgotten..... the basic rule of real estate - LOCATION - LOCATION - LOCATION!

It's not a secret as to why VWL, BCV, and BLT are very popular and very sought after. Some may ask why I include VWL in there - and that reason is LOCATION - LOCATION - LOCATION - it was the only DVC resort CLOSE to the Magic Kingdom before BLT moved into the neighborhood.

As far as the price per point, $140 isn't so bad when you consider how low the maintenance fees are! But, yes - there is a bit of sticker shock at $140 - when it was below $100 back in 2008 when we bought.

Did we spend a lot of money? YES, we did - but are we going to use that purchase to death? YES - till our death - and the death of the contract! HAHA

In all reality we are considerably younger than most DVC owners - we bought in in 2008 - I was 26 at the time, and my wife was 25.

So we are going to get our value out of the purchase.

BUT, going back to the lack of incentives - sorry for highjacking the thread!

You may not see an incentives again for quite some time - with one exception - and that's Aulani. I have been to the west coast two times this year, and Aulani is a BUZZ word at the Disneyland Resort. Sales are picking up, the buzz is picking up, and the price is picking up. I think there are going to be a good number of incentive offers on Aulani in the next year.

Disney was going to hit the Asian market really hard with Aulani - however, with the earthquake in Japan, part of the market is really struggling.

Disney is always rethinking, refocusing, and remarketing itself in new and creative ways.

Incentives drive sales, and create a sense of urgency.

With points remaining at Saratoga Springs, AKV, and ROFR's cranking at Beach Club - I think Disney has a few cards up its sleeve.

Don't tell everyone I said this.... but I think Disney is going to do something huge with DVC in the next year. The logo change, the anniversary, the newest off-site resort since just a few years after the birth of DVC - I think they are tying up some loose ends and are ready to make some major changes, additions, and announcements.

Among those will be the following:
-More Villas on the West Coast
-Refurbishments of older properties
-Tiered Benefits
-Added Perks for members
-Mores Changes in regard to resale rules
-Different target audience
-More focus on Disney Cruise Line (sales and access via points)
-New locations (Development at National Harbor location)

That's just my list!