Charging for points

[Raysplus1]

We are planning a trip to WDW next Aug. We have reserved a 2br for ourselves and a studio for my sisters family. My sisters family is also having friends of theirs going down at the same time. I thought about offering to reserve a studio for them so we are all at the same resort. But I would have them pay me of course. It is 88pts. What would you recommend charging them for this. I know some charge $8 - $10 per point when selling is this a good number to go by? Thanks for any help.

 

[logan115]

I think $8-$10 is a very fair price, that's probably comparable to what they would end up paying to stay at a value, and they get the benefit of staying at DVC.

Chris

 

[DisneyWalker44]

Personally, I've found no good ever comes from entereting into business relationships with family. Either treat them - or if you aren't able to do that - let them arrange their own room.

If you do want to go down this road, you cost (maintenance fees, depreaciation and "cost of capital") is probably between $9 and $13. $10 is always a nice round number.

 

[robinb]

This is for your sister's friend's family, right? Not the sister?

Rack rate is $380 ($340 plus tax) per night or $2620 for the week. A preferred view studio is 123 points for the week Aug 16-Aug 31 (Dream Season) and 132 per week for Aug 1-Aug 15 (Magic Season). If you charge them $10 per point they would pay $1230 for Dream Season or 53% off rack rate. Magic season would be $1320 or 50% off. That's how I would approach it ... how much you are saving them off of rack rate ... they don't need to know any per point stuff and if they want to stay at Boardwalk Villas they would not be able to get a better deal than 50-53% off rack rate.

You should also make sure that you get your money from them well in advance especially if you end up having to borrow points to book them a room or if 31 days before their vacation puts you outside your banking deadline.

 

[Sandisw]

I think the $10.00 per point is fair. However, before you entire into it with these people, be sure they understand the risks of going DVC vs. hotel room.

The lack of mousekeeping, less flexibility of cancelling out, etc. might not be something they are comfortable with at this point.

Since the idea may be coming from you (and not them), you want to be sure they understand how DVC differs from what they are already planning before they decide.

Good luck!

 

[logan115]

I think the $10.00 per point is fair. However, before you entire into it with these people, be sure they understand the risks of going DVC vs. hotel room.

The lack of mousekeeping, less flexibility of cancelling out, etc. might not be something they are comfortable with at this point.

Since the idea may be coming from you (and not them), you want to be sure they understand how DVC differs from what they are already planning before they decide.

Good luck!

I think the biggest thing is to mention that yes, you can save you some money on your room by doing this, but whatever price you agree with them on is a sunk cost for them whether they go on the trip or not (ie no refunds if they cancel inside of 30 days OR after it's too late for you to bank or rent the points).

Chris

 

[DisneyWalker44]

That's how I would approach it ... how much you are saving them off of rack rate ...

I'd be very careful with that approach. You tell somebody you are getting them a screaming good deal. They commit. Then then find out that can get it for essentially the same price via AAA or a Disney deal... or they could pay a bit more and get free dining. Suddenly, your screaming deal looks like a dud, and they don't evn get cancellation or daily housekeeping. (Even if they can't actually get a great deal, they'll read on the internet they can.)

Suddenly, you look like a used-car-salesman ripping off family.

 

[robinb]

I'd be very careful with that approach. You tell somebody you are getting them a screaming good deal. They commit. Then then find out that can get it for essentially the same price via AAA or a Disney deal... or they could pay a bit more and get free dining. Suddenly, your screaming deal looks like a dud, and they don't evn get cancellation or daily housekeeping. (Even if they can't actually get a great deal, they'll read on the internet they can.)

Suddenly, you look like a used-car-salesman ripping off family.

Show me one deal that is better than 50% off rack rate at Boardwalk Villas? Just ONE and maybe I'd agree with you.

 

[shortypots]

I think 8-10 is agreeable too since that is what you could get on the rental market, and I would think you would both want to have a contract in place to cover you both. Again, mention to them the benefits of DVC, and the drawbacks. I personally have no issue whatsoever with not having housekeeping in my room. I actually prefer the privacy! But some people when they go on vacation, want that. However, the larger room might help with that distinction! Especially if they were going to go value, those rooms are tiny!

 

[DisneyFreaks]

I'd be very careful with that approach. You tell somebody you are getting them a screaming good deal. They commit. Then then find out that can get it for essentially the same price via AAA or a Disney deal... or they could pay a bit more and get free dining. Suddenly, your screaming deal looks like a dud, and they don't evn get cancellation or daily housekeeping. (Even if they can't actually get a great deal, they'll read on the internet they can.)
Suddenly, you look like a used-car-salesman ripping off family.

Even though I totally agree with robinb on the terrific deal they would be getting I have to say this is so true as well. When our DSIL's brother and family wanted to accompany us and stay DVC we didn't have enough points to rent them a room so we booked a cash one bedroom (SSR) through MS and gave them the 25% member discount that was available. Then when my DS couldn't make the trip we let them have the two bedroom unit we had booked for ourselves for the same price. A few years later their neighbors couldn't make their already booked trip so sold it to them for $800 (an entire week at BCV) Suddenly what we did wasn't as generous anymore. They actually said they felt we ripped them off! From now on only our kids, grandkids and immediate family get treated. Everyone else is on their own to book wherever and however they want. Good luck with your situation.

 

[rentayenta]

I would offer but would also suggest they research other options before accepting.

 

[CMOORE185]

We are planning a trip to WDW next Aug. We have reserved a 2br for ourselves and a studio for my sisters family. My sisters family is also having friends of theirs going down at the same time. I thought about offering to reserve a studio for them so we are all at the same resort. But I would have them pay me of course. It is 88pts. What would you recommend charging them for this. I know some charge $8 - $10 per point when selling is this a good number to go by? Thanks for any help.

Unrelated to thread, GO HAWKS! The worst 9-0 team ever but I love it.

 

[2binak]

I agree with the others who say make sure these people understand DVC and how the points work. We've rented a few times, to very good friends and once to extended family members, who have asked to use our points. We make sure that they know upfront (in an e-mail so that it's in writing) that they cannot cancel beyond a certain date, usually 45 days out, so that we can bank the points and not lose them and that we need the full payment by X date. Once they agree on the payment price, payment due date & cancellation date via e-mail, we book the room for them.

Even with friends and family, whenever you deal with money, you really should have some sort of contract. I would say $10 would be a fair price to ask for.

 

[goofy4tink]

About three years ago, another mom and I decided to take our two soon to be 13 y/o dd's to WDW to celebrate turning 13. I booked a two bedroom villa at BWV. My friend told me there was no way she was going if she didn't pay for her room....gave her the studio. I argued with her, she refused to budge. So, I figured how many points that studio was costing me and charged her $10 per point. I also mentioned how much the studio was going for, rack rate. But I did forget to mention the lack of daily housekeeping!! My friend was horrified to find she wasn't getting clean facecloths every day!! Had to give her all the extras we had in the master area!!
I think that as long as you are honest about what the deal is...what they can expect from the room, housekeeping and any possible changes/cancellations, then you should be fine.

 

[james'mommy]

We are going next year with my parents and my sister's family. Each family is getting a studio. I think it's 65 points per studio. I told my parents that their room is a gift but my dad insists on paying for it. My sister know she has been paying for the points all along. I'm charging her $650 for the points. We are getting savannah view rooms at AKV so she knows she's getting a great deal.