DVC price per point

[megrod74]

I'm just curious if someone knows how Disney justifies the raising of prices for DVC each year when the years of ownership decrease. Is it inflation?
Thanks.

 

[KNWVIKING]

With BCV selling as fast as it is,they can raise prices till sales drop off. They may even be trying to slow sales somewhat so they will still have something to sell until SS is ready.

 

[megrod74]

you're probably right, KNWVIKING.

BTW, it is so funny that you are in Vineland, that's where DH is from; lived there all his life.

 

[KNWVIKING]

Does his name end in a vowel ? What part of Vineland ?

 

[EROS]

SUPPLY & DEMAND!!!

 

[DVCDAVE]

Ditto....."""

Supply and Demand.

Some of us conservatives, call it 'CAPITALISM' !! Notice that it doesn't have four letters.

 

[ralphd]

Originally posted by EROS
SUPPLY & DEMAND!!!

Economics 101.

ralphd

 

[Stinson]

micro-economics

 

[ralphd]

Yep!

ralphd

 

[erikthewise]

They justify it by continuing to sell at increased prices; "the market never lies". If a sufficient number of people buy at $84 a point, then it is by definition worth at least that much.

Another factor may be that price increases stimulate buying, in that people who are considering an addon may rush to do so before the price goes up. Or as in my case, some people may actually decide to join in time to beat a price increase! These effects may actually more than compensate for a slowdown in buying after the increase.

 

[POLLY ANN]

I'm just glad we got in when we did! I can't imagine having to pay $84 a point. Ouch!!!

 

[joepoe]

http://www.disboards.com/showthread.php?s=&threadid=278960&highlight=present+value

There was a detailed discussion on this in the above thread- hope the link works

 

[megrod74]

Thanks for the thread (and the financial homework), joepoe.

erikthewise, I think you are right.

 

[DeeP]

Does his name end in a vowel ? What part of Vineland ?

LOL! I guess you have to be from the area to get this but it had me laughing out loud!! I would say there are probably even more families in Hammonton with last names ending with a vowel!

 

[megrod74]

DeeP - You are correct; we know plenty of people there too! In fact, DH's great-grandmother happily lived there with a vowel at the end of her name
Down here in TX we are an something of an oddity

 

[LUVMICKEY]

In reply to the last name ending in a vowel, I am LOL. We live in Millville which is right next door to Vineland, But I was born and raised part of my life in Vineland and my last name did end in a vowel.

Michele