Have I been under a rock? Price increase postcard.

[Rock'n Robin]

Today we got a postcard from our guide about "beating the price increase". If you buy before 1/15, points are $104, and you can add on as little as 25 points. After 1/15, points are $112 and the minimum addon becomes 100 points.
I'm not that much of a dreamer to expect Disney would ever do anything in our favor financially, but with the economy the way it is, this sure seems to be sticking it to one of their most loyal fan bases--especially the change in the minimum addon points.
We were going to look at the AKV and BLT models in April--but we will NOT pay full price. I guess if we add on anywhere we will wait to do a resale contract.
Robin M.

 

[drusba]

There are a couple running threads on this on the operations page. However, what has been reported there is that minimum add-on purchase is going up from 25 to 100 points only at Bay Lake Towers; it will still be 25 at other resorts. Not sure whether your postcard says something different. Unknown is what the incentives will be come 1/15/09 when they raise AKV to $112.

 

[hellerjw]

There has been a lot of discussion about the possible reasons for them doing this. I tend to agree its intention is to make those already on the fence go ahead and pull the trigger on buying in at one of the new resorts (AKV & BLT). I think they are trying to keep buy-ins to a higher point amount to discourage small purchases at BLT in order to keep their costs down (a lot of small contracts presumably result in more short stays requiring more housekeeping, bookkeeping, etc) and get more money upfront to fund other projects. This may be an experiment on their part to see if it they can not only get away with it but actually reduce their overall costs in the process.

However, I think this strategy may backfire on them during this economic slowdown. If I were in the market to buy now I would be holding out for better incentives not simply purchasing because of a passive-agressive sales tactic they send out via postcard and/or email.

DVC obviously makes Disney a lot of money and having a captive audience of members means they don't have to offer a lot of enticements to get us to use our memberships and spend money on tickets, food, etc. The nature of the beast keeps us coming back and they know it. I wish they would look at the overall value we as members provide to their bottomline and offer us a few more perks or incentives, but I don't expect it. I knew when I bought in that this was primarily for long-term cost-savings on deluxe accomodations.

 

[Anal Annie]

I still think it's absurd to go from 25 to 100! What ever happened to 50!? You would think they would test the waters with an incremental increase for the minimum buy-in at BLT. Going straight to 100 is just twisted. The other thing I can't figure is their timing on this. I mean RIGHT AFTER the holidays when it's a lean year for most of us anyway...and before people get a chance to file their tax returns. I still say a decent tax return could fund a small add-on for some people. I secretly hope the whole thing backfires on them and that it does not produce the results they THINK it will. It also worries me what will happen to the minimum at future resorts like Hawaii.

 

[Mtnman44]

Personally, I hope the Walt Disney Company and DVC continue to be successful and profitable. If larger contracts and higher prices help that goal, great. If not, I'm sure they'll change to something that does. Either way, I have a good hunch that in the long run they know what they are doing.

 

[jlewisinsyr]

I still think it's absurd to go from 25 to 100! What ever happened to 50!? You would think they would test the waters with an incremental increase for the minimum buy-in at BLT. Going straight to 100 is just twisted. The other thing I can't figure is their timing on this. I mean RIGHT AFTER the holidays when it's a lean year for most of us anyway...and before people get a chance to file their tax returns. I still say a decent tax return could fund a small add-on for some people. I secretly hope the whole thing backfires on them and that it does not produce the results they THINK it will. It also worries me what will happen to the minimum at future resorts like Hawaii.

Tax returns, who gets these? If you're properly taxes through out the year and not giving a free loan to the IRS, you should balance close to $0.00.

 

[Anal Annie]

Tax returns, who gets these? If you're properly taxes through out the year and not giving a free loan to the IRS, you should balance close to $0.00.

We get typically get them. The amount varies from year to year depending on our Schedule A for the year...but I typically use whatever they amount to for vacations. Our Schedule A bounces around a good bit (we have an adjustable interest rate on our Home Equity Line and THAT my friend has gone from reasonable to sky high and recently back down to reasonable - you might be surprised how much that interest fluctuates). Since I truely cannot estimate my Schedule A I'd rather be safe than sorry than have to pay good 'ole Uncle Sam when we do our taxes. We have a deal - he can hold my money for me so I don't squander it at Target or Walmart as long as I know I still get it all back. I can do more with it in one big lump sum than in dribs & drabs.

 

[hakepb]

I think that changing the minimum points requirements are both odd and practical.
Odd because why turn away money in this economy?
Practical because I think many larger contract owners are happier than minimum contract owners (yes, I know it works quite well for some), but BLT requires a bunch of points for most standard stays.

Of course, just because they set a higher than current minimum does not mean they will never offer contracts for less than that minimum (i.e this summer's 100pt AKV contracts to new owners)

 

[Anal Annie]

Tax returns, who gets these? If you're properly taxes through out the year and not giving a free loan to the IRS, you should balance close to $0.00.

We get typically get them. The amount varies from year to year depending on our Schedule A for the year...but I typically use whatever they amount to for vacations (AP's, flights etc.). Our Schedule A bounces around a good bit (we have an adjustable interest rate on our Home Equity Line and THAT my friend has gone from reasonable to sky high and recently back down to reasonable - you might be surprised how much that interest fluctuates). Since I truely cannot estimate my Schedule A I'd rather be safe than sorry than have to pay good 'ole Uncle Sam when we do our taxes. We have a deal - he can hold my money for me so I don't squander it at Target or Walmart as long as I know I still get it all back. I can do more with it in one big lump sum than in dribs & drabs.


(Oh, and in my previous post I didn't mean to sound like I hope DVC fails in general...I meant that I hope this nonsense of 100 pt. min. add-ons at BLT - I hope that doesn't fly with most owners. I think they went overboard with that one. They should've started with an increase to like 50 or something.)

 

[DisDaydreamer]

Tax returns, who gets these? If you're properly taxes through out the year and not giving a free loan to the IRS, you should balance close to $0.00.

I think the vast majority of people get returns because it is easier to overpay and get a return than to under pay and owe. Not many people end up near $0.00 JMHO.

 

[rutgers1]

My wife and I had a good laugh when we read that postcard. Talk about bad timing. There is zero way that they would scare me into buying, especially in this economy. This is the time to entice people at CURRENT rates by upping the perks and related benefits, NOT saying "Get in now because you will be screwed otherwise."

Someone posted earlier in the thread that he/she thinks they know what they are doing in the end. I totally don't agree. If you've read Disney War or Reality Land, it is clear that - just like anywhere else - ideas fail all the time. Disney has made some major blunders over the years, and I think someone will lose their job over this one, just in time for the holiday season.

 

[WilsonFlyer]

Disney has made some major blunders over the years, and I think someone will lose their job over this one, just in time for the holiday season.

I hope you're right. Someone deserves to get fired over this one. We bought 160 the second day with intentions of refining it 25 at a time until we got it to a level that we liked. Now I don't know what we're going to do. I refuse to be bullied into 100 at a time. That is NOT what I signed up for.

Somebody screwed us major league on this one.

 

[fishermouse]

I guess I look at things differently I thought Great they're giving us advanced notice of an increase. If I were waiting untill early next year for whatever reason I now know to buy before Jan 15th. Even if you have to take a loan to carry you until then the interest is going to be less than the extra $8.00 a point. As far as BLT anything less than 100 points won't allow you much since the points are so high for the rooms. That's what turned us off to it. Think if I want to stay there once in a while I'll just take my chances at 7 months. The times I travel I've never had trouble getting any other property. We usually stay at our home resort anyway, DD and SIL wanted to stay at BWV this Jan so we booked there but that's only the second time we stayed at WDW outside one of our home resorts. I do like going to VB and HH.

 

[WilsonFlyer]

As far as BLT anything less than 100 points won't allow you much since the points are so high for the rooms.

Familiar with the concept of banking and borrowing? 50-75 points properly allocated could be used in a number of different ways.

Did you read my post above? How would you like to have bought in at 160 only to be told NOW that you have to add on in multiples of one freakin' hundred?

 

[Anal Annie]

Familiar with the concept of banking and borrowing? 50-75 points properly allocated could be used in a number of different ways.

BINGO! According to my (latest) spreadsheet, if we could purchase 57 pts at BLT we could do an LV studio every other year for 6 n. in the "Dream" season...or we could do an LV studio for a full week in the "Magic" season every 3 years or we could do a 3 n weekend once a year in the "Adventure" season. That would also be enough to do a 1 bedroom for 5 n every 3 years in the "dream" season.

Did you read my post above? How would you like to have bought in at 160 only to be told NOW that you have to add on in multiples of one freakin' hundred?

That bites WilsonFlyer. We can't even do 25 pts right now...but 25 is not what I want. I would actually LOVE to be able to do 50something at both AKV and BLT. But it ain't happening right now unless the heavens open and winning lottery tickets rain down on me.

 

[MommaX03]

But it ain't happening right now unless the heavens open and winning lottery tickets rain down on me.

I totally agree Annie! I would love to do an add-on to a DVC resort, but your quote basically sums up the prerequisite!

 

[TheDISneyFamily]

That bites WilsonFlyer. We can't even do 25 pts right now...but 25 is not what I want. I would actually LOVE to be able to do 50something at both AKV and BLT. But it ain't happening right now unless the heavens open and winning lottery tickets rain down on me.

You guys aren't alone. We're not too happy about this new 100 point BLT minimum either. We were going to do a 50 point add-on at a time over the next few years. Now we have to rethink that, and to be honest, I don't know if I'm even interested anymore.

 

[dcfromva]

What an odd coincidence that the announcement for BLT was made on the day the stock market started headed downwards.
I'm wondering if this 100 point minimum for BLT marketing strategy might have been created prior to the stock market heading south? DVC can change their policy at any time based on market conditions. So, if the 100 point minimum isn't working, they can always change it. (I hope )

 

[Tozzie]

I am actually wondering if this has anything to do with the Villas at the Grand Californian. When I added on in September I asked my guide about when the points for VGC would go on sale and he said prolly not until the new year. Since there aren't going to be a huge amount of points available there and it will be the only on DVC in California that is on property ( not much room to expand there ) they may be starting a trend for those of want to add on there. Just a theory.

 

[Just People]

Argh! I got the post card today. Is DVD aware of the financial situation in this country??!! 100 point minimum is just way too much! I would think 50 would be pushing it a little, but 100?! DVD pretty much sealed the deal that if I ever do an add on , it will be resale. Also, with the economy and real estate the state it is in right now, a price increase is just uncalled for.