DVC's Offense is Defense?

[alexandone]

DVC is exercising more ROFR; my opinion is that they are gathering/stocking points for the downtime. Downtime being the time between SSR selling out and pre-sale of AKLV or CRV or what ever it may "V"(be)!

 

[Granny]

Or it could be that the resale market is hurting SSR sales.

Hard to say.

 

[dianeschlicht]

Or it could be that the resale market is hurting SSR sales.

Hard to say.

I think that's likely, and for more than just the lower buy in price. I think it is hurting to have members owning fewer than the 150 point minimum contracts. SOme of that problem was hinted at when DVC lowered the buy in from 230 to 150 also.

 

[salmoneous]

As long as we are going with random speculation, I think Disney has a problem with the market price of new sales growing faster than the market price for resales. They have to start ROFRing more to prevent the gap from growing.

 

[mydogdrew]

DVC is exercising more ROFR; my opinion is that they are gathering/stocking points for the downtime. Downtime being the time between SSR selling out and pre-sale of AKLV or CRV or what ever it may "V"(be)!

I disagree. They are buying up the small contracts to push SSR. As much as they would like you to believe that the recent policy enforcement issues are related to curbing commercial renting, the truth is they don't want families getting in for a 50 pt resale and transferring points in as needed. DVC much prefers you trade out of DVC with your extra points where they can make a margin reselling your $6 points for $16.

By limiting transfers and buying up the small contracts they accomplish this.

 

[dianeschlicht]

I disagree. They are buying up the small contracts to push SSR. As much as they would like you to believe that the recent policy enforcement issues are related to curbing commercial renting, the truth is they don't want families getting in for a 50 pt resale and transferring points in as needed. DVC much prefers you trade out of DVC with your extra points where they can make a margin reselling your $6 points for $16.

By limiting transfers and buying up the small contracts they accomplish this.

And why shouldn't they? If the stated minimum conract is 150 points, why shouldn't they enforce that any way they can?

 

[MinnieGirl33]

I think that's likely, and for more than just the lower buy in price. I think it is hurting to have members owning fewer than the 150 point minimum contracts.

I thought about that too.

 

[spiceycat]

DVC is exercising more ROFR; my opinion is that they are gathering/stocking points for the downtime. Downtime being the time between SSR selling out and pre-sale of AKLV or CRV or what ever it may "V"(be)!

oh hope so!!!

remember last time - they almost brought out the entire resale market for a couple of months.

 

[mydogdrew]

And why shouldn't they? If the stated minimum conract is 150 points, why shouldn't they enforce that any way they can?

Never said they shouldn't (but technically the minimum contract is 25, not 150). My point is they are discouraging small contract members (ROFR and Transfer trends) to make margin on trades out of DVC (they are not making money reselling ROFR contracts at $95 that they paid nearly that for).

 

[doubletrouble_vb]

I guess the question is why would you ROFR a contract at any price over $85...or whatever the price differential would be between $92 or $95 and Disney's cost to process the sale?

The small ones there would be in advantage if you could combine them to sell as a single larger contract or to existing members as several smaller ones..eliminates the possibility of having to support two or three new owners versus a single new one obtained through regular channels. However I don't see why this would be an advantage to DVC post-sale. That cost would come out of our maintenance fees. Unless the sheer number of members is pushing MS to the edge on handling them.

The only other reason I can see is that the resale value the market will bear without ROFR is significantly lagging Disney's price. Without ROFR I suspect SSR would be selling at a price slightly higher than OKW.