FALSE RUMOR : Point add-on minimum going up to 100 for all resorts not just BLT!

There is post on a different board, not a DisBoard, this morning saying that the minimum add on at ALL resorts through DVC is going to be raised to 100 points on January 15th. The poster quotes his CM. Has anyone else seen this post? Do you think there is any truth to it? No one has refuted the claim as of now, Sunday 9AM Eastern. :confused3
 
OK..so maybe I need 100 points at GCV, but will I be able to break them into chunks since the plan was to leave points to each of the kids?
And I really don't think many buy 25 to get perks..the perks aren't that great..100 off an AP? Well, I don't go to WDW that much to need an AP and I think many are in that same boat. It seems silly to spend almost 2,500 to get an AP discount and 10% off food some places. This does bug me..they need to realize tha alot of people interested in belonging just don't NEED that many points.
 
Well, at this point the only official word we have from DVD is that the increased minimum applies only to BLT. It seems strange they would send out that official notice and then essentially the next day determine something else that is being communicated only through mention by sales reps.
 

This says to me that BLT is the last DVC resort on the drawing board at WDW for the forseeable future. That is the only way it even remotely makes sense to discourage easy small point add ons (at full price, mind you) from current members.
Possible. Using that logic it could mean the last DVC resort that's not already in the works which would be HI. Other possible factors include that the number of points required is likely to be high enough it won't matter, that the profit overall is expected to be better with larger minimums or that those smaller contracts are causing MS aggravation and they've asked for help. Or they could simply raise the minimum and then offer specials later if they wanted. I'm sure there are other possible issues we could add to the list. Personally I wouldn't read too much into it other than DVD has decided it's better for them to sell raise the minimum at this time. Truthfully the 25 points contracts never made sense for MOST people, even 50 likely doesn't for BLT and ? HI.
 
Well I dont come on the DVC boards for a few days and look what I miss;) I can understand the rationale behind this from a cost saving standpoint. Disney has just as much overhead in a 25 point contract as they do a 200 point contract, therefore the smaller contracts are a drag on margin. In slow economies, its very easy for companies to allow their margins to fall in exchange for maintaining sales volume. The problem is when things turn around, its much harder to get margins back to the way they were.

This is somewhat a bummer for me because I was also going to do a BLT add on later next year. But its all good, I'm sure I'll find another use for those funds:thumbsup2
 
Disney has just as much overhead in a 25 point contract as they do a 200 point contract

If the member sells that contract and a new member comes into the system at 25 points, okay. But for an add-on to an existing member contract? No way.

My parents owned 150 points at BWV. They wanted to add 25 points, so they called their guide, he had the points available and he charged them to their credit card instantly. That has to be the easiest money in the world, which DVC has decided to give up.
 
If the member sells that contract and a new member comes into the system at 25 points, okay. But for an add-on to an existing member contract? No way.

My parents owned 150 points at BWV. They wanted to add 25 points, so they called their guide, he had the points available and he charged them to their credit card instantly. That has to be the easiest money in the world, which DVC has decided to give up.

Yes, but that is only the beginning. That contract then has to be processed etc. the exact same way as a 200 point contract which carries a cost. When a person with a 25 point contract then goes to make a reservation, they take up just as much time with MS booking 2 nights as they do the person calling to book a week with 200 points.

If Disney can sell 1 (100) point contract versus 4 (25) point contracts, they will choose the former every single time because its better for the bottom line. Either way, I'm not a fan of the idea, but it is what it is....
 
Until I see an official announcement or hear it from my CM, (I sent an email to my CM today) I refuse to believe that DVC has made this dramatic change in such a short time and with so little warning during the Holiday season. IMHO if this is true it is a game changer for po' folks like me! :eek:
 
If the member sells that contract and a new member comes into the system at 25 points, okay. But for an add-on to an existing member contract? No way.

My parents owned 150 points at BWV. They wanted to add 25 points, so they called their guide, he had the points available and he charged them to their credit card instantly. That has to be the easiest money in the world, which DVC has decided to give up.
Still there are increased sales costs to DVD per point for smaller contract and it's DVD, not DVC, that's doing this. It is still more costly for DVC to manage smaller contracts than larger ones on a per point basis overall no matter how many total points you have it's just that the admin costs of a single 25 pt (or whatever #) emphasis the admin cost to the extreme. However for a member who owns a single 25 points contract, they are likely far less needy overall than most members even if you include the inherent cost of carrying a member as a constant. They are usually very well informed members who know what they want have everything worked out well ahead of time. So the same admin cost for having a single contract as someone who has 500 points in a single contract but likely less MS time and attention. OTOH, those that are smaller contract owners (75-150) may be younger or trying to stretch the dollar and I would agree that are likely (I have no data) to be more costly on a per points basis. And I would say that anyone under 200-250 points is actually a small point owner in many ways. I don't know the average but anyone who owns under the average is likely being subsidized by the rest of the owners. ONE way around this is to change the fee structure to a set amount plus a per point charge, something like $250 plus $4 a point rather than the strict per point cost.
 
Still there are increased sales costs to DVD per point for smaller contract and it's DVD, not DVC, that's doing this. It is still more costly for DVC to manage smaller contracts than larger ones on a per point basis overall no matter how many total points you have it's just that the admin costs of a single 25 pt (or whatever #) emphasis the admin cost to the extreme. However for a member who owns a single 25 points contract, they are likely far less needy overall than most members even if you include the inherent cost of carrying a member as a constant. They are usually very well informed members who know what they want have everything worked out well ahead of time. So the same admin cost for having a single contract as someone who has 500 points in a single contract but likely less MS time and attention. OTOH, those that are smaller contract owners (75-150) may be younger or trying to stretch the dollar and I would agree that are likely (I have no data) to be more costly on a per points basis. And I would say that anyone under 200-250 points is actually a small point owner in many ways. I don't know the average but anyone who owns under the average is likely being subsidized by the rest of the owners. ONE way around this is to change the fee structure to a set amount plus a per point charge, something like $250 plus $4 a point rather than the strict per point cost.
A question for Dean.......is there any other benefit derived from this move other than administrative cost savings? Does it do anything to enhance the ownership of DVC?
 
This is bad news for me. I just purchased a 50 point BWV contract and was planning to slowly add on in small increments. I'm a single public school teacher, so I just don't see myself having an extra $10,000 lying around anytime soon to meet the new minimum. Oh well, back to the drawing board...


Melissa
 
Well the 'reason' we were told about in increases in the min buy in was they wanted to make it so that if you wanted to use the 'outside' disney places (II soon to be RCI) that you would be able to have a week at where ever you wanted to go.. How true that is, or if it was just another CM story that gets told who knows..
 
I love this theory that because the economy is currently bad Disney should not change.

NO! Disney should think long term. So the economy is bad. It won't stay that way forever. But once they sell something at less then they think it's worth they have LOST that opportunty. It's kind of like why I am not selling my home right now. I don't need the money and I don't want to take the loss!

Look at it this way. If you already own some 25 and 50 point deals... think how much more they will be worth LOL!

I was thinking the same thing, Carol. My 50 point OKW contract is going to worth a lot more if this all takes place.
 
DVC has and will continue to change minimum buy in requirements. We would like an additional 50 points but are not able to afford it right now. We'll wait and see what happens.

Dennis-
 
We bought a 25 resale and added 35 thru disney. That was what we could get and have it paid for. Late next year we wanted to add 60 more points, possibly 30 at a time, each time, so it would be paid for at time of purchase. We really do not want 100 more points. We wanted enough points for one bedroom 5 nites, every other year. And then the opposite year a studio with our other contract.
 
This is bad news for me. I just purchased a 50 point BWV contract and was planning to slowly add on in small increments. I'm a single public school teacher, so I just don't see myself having an extra $10,000 lying around anytime soon to meet the new minimum. Oh well, back to the drawing board...


Melissa

If you take the same money you would have paid for the smaller contracts, put it in a separate account preferably balanced mutal fund and let it accumulate, you will ultimately have enough to get the 100 points and overall you will come out ahead.

In the meantime, you can bank/borrow and every year or two you'll have 150 points to use and if you need you could rent a few extra her and there.
 
Well the 'reason' we were told about in increases in the min buy in was they wanted to make it so that if you wanted to use the 'outside' disney places (II soon to be RCI) that you would be able to have a week at where ever you wanted to go.. How true that is, or if it was just another CM story that gets told who knows..

Wouldn't there be some benefit to the guides if suddenly people thought they would have to purchase a small contract soon or forfeit the chance? Seems it might create a flurry of small purchases at a time when sales might otherwise be down.

If DVC is actually going to increase the minimum for all resorts, it seems they would have a good reason that outweighs perceived negatives. Maybe they benefit most from larger contracts and are willing to forgo the smaller sales at this time to save points for larger sales in the future.
 
I Work in Retail and have always lived by the philosophy that I would rather "get a fast nickle then a slow dime". Turn your inventory! Unless Disney is outgrowing its operation, which I highly doubt, I don't get the logic in limiting sales.
 
it's DVD, not DVC, that's doing this.
Right I know that. Sloppy shorthand.

It is still more costly for DVC to manage smaller contracts than larger ones on a per point basis overall no matter how many total points you have

Of course but given that DVD is making points available for sale, hitching up a caboose to a current member's train should be one of the most efficient ways to sell and service those points.

Further, someone said this is a good move because DVD should not undersell its product just because the economy is bad. That makes no sense to me - the 25- and 50-point add ons are full-price, no-incentive, no-developer-point income.

I read elsewhere a theory that this is tied into the renewed relationship with RCI.
 

















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