Disney Direct Tricks?

[dwight16]

So I was down last weekend for the marathon and I was sitting next to people on the backlot tour and they just bought into the DVC I told them I was an owner also they told me why they bought I mentioned I bought resale and they should look into it. They stopped me there and said that's going to end real soon. I said what?!? They said Disney told us they will be buying everything up on the resale market. So they had to buy direct. I did not want to argue with them bc they probably just spent 15k earlier that morning. Just made me feel bad for them.

 

[montrealdisneylovers]

So I was down last weekend for the marathon and I was sitting next to people on the backlot tour and they just bought into the DVC I told them I was an owner also they told me why they bought I mentioned I bought resale and they should look into it. They stopped me there and said that's going to end real soon. I said what?!? They said Disney told us they will be buying everything up on the resale market. So they had to buy direct. I did not want to argue with them bc they probably just spent 15k earlier that morning. Just made me feel bad for them.

I certainly hope this is true though I highly doubt it.

I think it would help their direct sales. If resale prices are stable and reasonable, Disney can use that as a selling feature for diect. I guess time will tell.

 

[DisK]

I have also heard this rumor. It makes sense though, if Disney buys all the resale contracts via ROFR, and then sells them higher....they make a nice profit. People will always want DVC.

 

[lodge]

That'd be a lot of money and time expenditure for not a large profit margin.

 

[chalee94]

umm, no.

this is just one of the classic timeshare salesperson lies. it suckers some people into paying extra to buy direct...that's all it's supposed to do.

 

[DizBub]

Our guide told us in September that they were ROFRing everything (he said this with a straight face). We all know this is not true. We really like our guide and realize he's just trying to earn a paycheck so we said nothing.

I just wish they would stop with the scare tactics, it makes them look ridiculous.

 

[crisi]

That'd be a lot of money and time expenditure for not a large profit margin.

Plus handing out a very nice liquid asset - cash - in exchange for timeshare leases they need to sell.

ROFR will continue to get exercised at the point at which they can protect their active sales and make money reselling those points as long as they don't need to tie up significant cash doing it.

A lot of big companies got burned big on not enough cash in 2008 - including Disney. Until the executives turn over, they won't forget those lost bonuses.

 

[wiigirl]

That'd be a lot of money and time expenditure for not a large profit margin.

 

[LisaS]

Our guide told us in September that they were ROFRing everything (he said this with a straight face). We all know this is not true. We really like our guide and realize he's just trying to earn a paycheck so we said nothing.

I just wish they would stop with the scare tactics, it makes them look ridiculous.

I was told the same thing when we first talked to a guide several years ago. I had been reading the DVC boards for a while by that point so I knew it wasn't true.

It wasn't true then, it isn't true now and, as you said, it just makes them look ridiculous, not to mention dishonest.

 

[Nabas]

this is just one of the classic timeshare salesperson lies. it suckers some people into paying extra to buy direct...that's all it's supposed to do.

I agree.

This is one of the lies that have been told since the 1990s. Before I owned, I was considering buying direct and must have heard this at least 5 times from different guides.

 

[Nabas]

That'd be a lot of money and time expenditure for not a large profit margin.

I agree. Margins are greater with new construction, while marketing costs are lower.

BLT cost somewhere around $25-$30/point to construct.

Buying BLT resale (especially if Disney was buying "everything") would easily cost Disney over $100/point.

In addition, new construction provides millions of points to sell. Buying points on the resale market piecemeal adds a lot of overhead for Disney.

Business is all about quantity and margins.

Disney will dabble in the resale market to keep some buyers happy (e.g. someone who only wants a "sold out" DVC) but volume and margins are too small on the resale market to feed Disney's enormous DVC machine.

 

[Breyean]

I agree. Margins are greater with new construction, while marketing costs are lower.

BLT cost somewhere around $25-$30/point to construct.

Buying BLT resale (especially if Disney was buying "everything") would easily cost Disney over $100/point.

In addition, new construction provides millions of points to sell. Buying points on the resale market piecemeal adds a lot of overhead for Disney.

Business is all about quantity and margins.

Disney will dabble in the resale market to keep some buyers happy (e.g. someone who only wants a "sold out" DVC) but volume and margins are too small on the resale market to feed Disney's enormous DVC machine.

Well put.

And don't forget they also acquire some points via bankruptcy to satisfy those on the direct purchase wait lists. Just costs them the overhead in those cases, I would think.

 

[Silver19]

Our guide told me the same thing when we purchased our first 50 points last January, and then again last April when we decided to make an offer on a resale contract.

I felt great when I left him a message telling him I closed on the resale and was removing my name from the add-on waitlist.

 

[Minniesgal]

This old chestnut

 

[dwight16]

It also was funny to see them claim you will make your investment back in 5-11 vacations if you pay rack rate at a dvc resort. I was like wow that's a big spread.

 

[sndral]

So I was down last weekend for the marathon and I was sitting next to people on the backlot tour and they just bought into the DVC I told them I was an owner also they told me why they bought I mentioned I bought resale and they should look into it. They stopped me there and said that's going to end real soon. I said what?!? They said Disney told us they will be buying everything up on the resale market. So they had to buy direct. I did not want to argue with them bc they probably just spent 15k earlier that morning. Just made me feel bad for them.

Right now I believe Disney is only offering AKV and VGF via their direct sales presentations. If they bought VGF it's a moot point as there are no resale listings - yet. If they bought AKV, then they wasted a lot of money, IMO.
I am always amazed at how people hear what they want to hear. The guide might have said "Disney could use ROFR on all resales, which is technically true, but very different than saying Disney will exercise ROFR on all resales.
There's a lot of info. thrown at people at a sales presentation, I assume, and signing on the dotted line for $20-30,000, has to be overwhelming, and people try to justify their choice.
The again the guide could have flat out lied.

 

[dundey]

All t/s salespeople lie. Disney is no exception.

 

[boxer]

We just bought direct last week, and our guide did not say anything about Disney buying back 'all' the ROFR contracts. He said this was an option for the lower-priced contracts, but never said they would all be bought.

His selling point on not buying off the resale market was those contracts do not come with all the 'perks' that buying from Disney does. Basically said you cannot access Aluani (which is one of our targets in a few years), and those other resorts that are offered. In essence, you would be tied to the Disney World Resort with those points, and couldn't even access Disneyland. My research showed this to be possibly true---but even if it wasn't, we wanted in at the VGF, so we almost had to buy right now--rather than wait a year or so on the resale market.

 

[Minniesgal]

We just bought direct last week, and our guide did not say anything about Disney buying back 'all' the ROFR contracts. He said this was an option for the lower-priced contracts, but never said they would all be bought.

His selling point on not buying off the resale market was those contracts do not come with all the 'perks' that buying from Disney does. Basically said you cannot access Aluani (which is one of our targets in a few years), and those other resorts that are offered. In essence, you would be tied to the Disney World Resort with those points, and couldn't even access Disneyland. My research showed this to be possibly true---but even if it wasn't, we wanted in at the VGF, so we almost had to buy right now--rather than wait a year or so on the resale market.

You can go to Aulani and the villas at the grand Californian with resale points

 

[keaster]

We just bought direct last week, and our guide did not say anything about Disney buying back 'all' the ROFR contracts. He said this was an option for the lower-priced contracts, but never said they would all be bought.

His selling point on not buying off the resale market was those contracts do not come with all the 'perks' that buying from Disney does. Basically said you cannot access Aluani (which is one of our targets in a few years), and those other resorts that are offered. In essence, you would be tied to the Disney World Resort with those points, and couldn't even access Disneyland. My research showed this to be possibly true---but even if it wasn't, we wanted in at the VGF, so we almost had to buy right now--rather than wait a year or so on the resale market.

Bolding is mine!

I am a direct buyer as well, but the bolded statement is an outright lie...resale buyers can use their points at Aulani and every other DVC resort (including Hilton Head, Vero Beach, and Grand Californian). The only Disney related properties resale buyers cannot access are Disney hotels under the Disney collection, Adventures by Disney, and DCL.

Now can they take away the DVC resorts (other then the home resort) from resale buyers? I have no idea if that is possible or if DVC would want to do it.