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

[ClarabelleCowFan]

Did a quick search and didn't see a thread about this yet.

We met with our guide yesterday and she told us that as of January 15th that the minimum add-on amount for ALL resorts (not just BLT as our postcard stated) will go up to 100 points. Also the minimum buy-in for new members will go up to 200 points.

Isn't DVC shooting themselves in the foot right now with the current state of the economy by doing this???

We wanted to add on 40 points and our guide told us that if we wanted to do that we needed to act quickly or we wouldn't be able to do that thru Disney.

Is this going to affect anyone out there that is planning on adding a smaller points contract?

 

[BWV Dreamin]

OMG...this is incredible news! This is really going to change the purchase dynamics of DVC! Wow.......

 

[rwcmath]

Wow, not good news.

rwc

 

[gingermouse17]

wow- glad I just finished my recent add on which was less than 100. This new rule will limit any new add ons I may consider. It's easier to justify a 50 pt add on then a 100 pt add on.

 

[CarolA]

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!

 

[blossomz]

My guide told me that when I got my add on the other day....

 

[ClarabelleCowFan]

Our guide seemed to think this was really going to hurt sales overall - at least until the economy is on the upswing (and who knows how long that will be). My in-laws have been on the fence about buying in but definitely won't want a 200 point contract. 160 points was pushing it for them. They will most likely go the resale route to get a smaller contract or just give us the money to add on 100 points to our contract and just use those points to book their stays.

With the point per nite structure at BLT being so high though, I guess it does make sense to require a buy-in amount that allows a member to actually utilize their points at their home resort.

 

[CarolAnnC]

Well as an existing owner, it just validates my decisions to make my purchases when I did. Tis better to see increases as an owner, rather than decreases. That would not make our ownership more valuable for us if they were selling at fire sale deals.

Wondering if Disney is trying to limit the small contract owners who buy in just for perks, too? I know that has been controversial in the past..

Interesting to see how DVC is evolving!

 

[tjkraz]

Wondering if Disney is trying to limit the small contract owners who buy in just for perks, too? I know that has been controversial in the past..

Could be but it's kinda like closing the barn door after the horses are out, eh? There have to be thousands of small contracts out there already.

I'm not sure I buy the "economy is in the crapper" logic myself. However, with Disney looking to reduce it's workforce, this could be one way of accomplishing that goal (or at least achieving a hiring freeze for DVC.)

If they reduce their sales overhead (namely salaries) they could actually move fewer points and still be just as profitable.

 

[CarolAnnC]

Could be but it's kinda like closing the barn door after the horses are out, eh? There have to be thousands of small contracts out there already.

That is easily remedied at any time though by acting on ROFR when they go up for sale. If they want, they can pretty much stop the market on small resales by just buying them all back. Will be interesting to see how this develops with the new higher point minimums.

 

[ClarabelleCowFan]

That is easily remedied at any time though by acting on ROFR when they go up for sale. If they want, they can pretty much stop the market on small resales by just buying them all back. Will be interesting to see how this develops with the new higher point minimums.

I expect the smaller point contracts on resale to increase in price as soon as this change takes place.

I agree - should be interesting to see how this all pans out.

 

[tjkraz]

That is easily remedied at any time though by acting on ROFR when they go up for sale. If they want, they can pretty much stop the market on small resales by just buying them all back. Will be interesting to see how this develops with the new higher point minimums.

They could also figure out a way to limit perks to just those with a certain ownership minimum (150-160 points.) In the end, that may cost a lot less than exercising ROFR on a lot of inflated small resale contracts.

 

[Kmango]

It seems that DVC has decided to go for margin instead of volume here. The rational may be something to the effect of "If you can afford a $17k purchase at this time, you can probably afford a $20k purchase, and we want that $3k." Sure, you'll lose some folks that way, but I assume they're betting that it won't be that many. Whether or not that's a smart bet remains to be seen.

 

[permavac]

This seems a little short-sighted to me. In my limited experience, I have seen so many posts from owners who talk about addonitis and the small add-on they just purchased. I would think those small add-ons provide a pretty steady revenue stream. Then again, administration costs on those small point contracts may be a drag. Anyway, this is bad news for me - I was hoping to add on 50 points at the end of next year and another 50 two years from then. Now we will have to wait to buy them all at once Bummer. Oh well - silver lining is I got my initial small point contract before the prices shot up!

Terri

 

[podsnel]

This makes me so sad. My plan was to pick up small BCV contracts over several years, as Birthday/Christmas/anniversary gifts- oh well... Hopefully it won't do well for them and they'll change it back.

 

[snowbunny]

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.

 

[TLSnell1981]

I guess, I could see Disney going to a 50 point minimum add on....but, 100? There are probably more than a few folks that don't need that many additional points. It's not just about the "extra" expense. Why buy what you don't need?

 

[zulaya]

I've added on twice. Each time has been 100 points and 120 points. Maybe I'm out of the ordinary, or I just didn't put as much value on selling as others do.

I think Disney is probably marketing more to existing owners with this 100 point add on. We'll stay longer on property and they're hoping we spend more money with this longer stay.

I think the perks thing is probably valid as well. I've seen many posts just here on the DIS of people bragging about how they bought a 25 point contract just to get the AP discount and other perks of membership. Now that's the system that's in place now, but maybe this is the first step in making the cost of membership higher so those perks mean a little more to those who receive them.

I don't know. But I'll be curious to see how it all works out.

 

[5forDiz]

It makes me wonder too about a possible tie to perks or other offers....I've read here couple days ago of some members receiving a survey regarding perks &/or access to things based upon number of points owned.....

 

[WilsonFlyer]

This is really odd but my guide told us (we met with him Thurs to see the BLT models) specifically (I asked) that the 100 minimum only applied to BLT. Maybe he hasn't gotten the word yet.