New DVC . . . .saw this today . . . . .

[tor]

First of all I believe I said "At some point you cannibalize your own market"--so the answer to your questions is that the point may not have been reached.

While you may attract new guests, "At some point you cannibalize your own market"--there has to be som element of this..

As to your calculation...the point is not how much over market the place sells as Disney was never going to sell anything...it is how much money do you have to lay out NOW to get money back...return on investment...It costs money to build DVC--it brings money in--but how much? how fast? and from where? Is it all new revenue streams? Definitely not....the vast majority of DVC buyers are almost certainly people who were already staying at Disney hotels before DVC --so there is no question that that portion of the money you get is offset from the revenue lost from the resort stays....it is NOT a simple just-keep-building-DVC's-and-you-will-keep-making-money deal.

Yes you did say at some point but that does not make it correct if there is no point at wich this will happen an example is statistically .119 % of all 30 year olds will buy a time share and .49% of all 35 year olds will buy a time share if DVC wasn't there they would buy from another supplier such as Marriott so these time share buyers are new money that wouldnt be going to Disney every year and paying for a room. The beauty of this system is that there is a whole new batch of 30 year olds and so on every year so the supply of buyers is never ending.

Second the point is exactly how much over market the place sells for builders do not sell condos for $80,000 dollars if it cost them $90,000 to build it. They sell the unit for a profit or more than it cost to build probably cost them less then $50,000 to build sell it for $80,000 and they walk with $30,000 profit in Disney's case they build it for $50,000 sell it for $390,000 and walk away with $340,000 in profit. Then any future expenses get paid by dues and in 50 years they refurbish or tear down and start again

Third the money spent on park admission meals and other stuff while staying at DVC is icing on the cake

 

[WDWCPAlumni]

Honestly, if they are offering discounts to buy in, my advice is to grab it!!!! Being a DVC member I would say it really doesnt matter where you buy into, you can use any of the resorts!!!! So get it cheaper and use the benefits where you want. Why wouldnt you????

 

[PKS44]

Yes you did say at some point but that does not make it correct if there is no point at wich this will happen an example is statistically .119 % of all 30 year olds will buy a time share and .49% of all 35 year olds will buy a time share if DVC wasn't there they would buy from another supplier such as Marriott so these time share buyers are new money that wouldnt be going to Disney every year and paying for a room. The beauty of this system is that there is a whole new batch of 30 year olds and so on every year so the supply of buyers is never ending.

Never ending supply of people who are NOT planning to stay at Disney resorts and yet do want to buy a committment to DVC? In other words you assume that those buying DVC have no negative impact on Disney resort reservations....

Hmmm--let's just say we agree to disagree on that ...I think that as a Disney stockholder this is a notion I am very uncomfortable with-- if that is what Disney thinks--I would not trust anyone with my money who seriouisly thought this way...fortunately all evidence is that Disney has a little more sense than that as they are not just building DVC anywhere and everywhere....yet.

Second the point is exactly how much over market the place sells for builders do not sell condos for $80,000 dollars if it cost them $90,000 to build it. They sell the unit for a profit or more than it cost to build probably cost them less then $50,000 to build sell it for $80,000 and they walk with $30,000 profit in Disney's case they build it for $50,000 sell it for $390,000 and walk away with $340,000 in profit. Then any future expenses get paid by dues and in 50 years they refurbish or tear down and start again

so even though you are saying it is "how much over market the place sells for" note that your profit calculation is how much over cost (ie investment)...in other words exactly what I said...Return on investment...the profit calcualtion has nothing at all to do with "how much over market" it sells for...so I will stand by my original statement on that as well...it is all about how much Disney has to lay out now vs how much they get back minus how much non DVC resort bookings they lose...

so let's just say we agree to agree on this --but for some reeaon you think we are not agreeing.....

 

[tor]

Never ending supply of people who are NOT planning to stay at Disney resorts and yet do want to buy a committment to DVC? In other words you assume that those buying DVC have no negative impact on Disney resort reservations....

Hmmm--let's just say we agree to disagree on that ...I think that as a Disney stockholder this is a notion I am very uncomfortable with-- if that is what Disney thinks--I would not trust anyone with my money who seriouisly thought this way...fortunately all evidence is that Disney has a little more sense than that as they are not just building DVC anywhere and everywhere....yet.



so even though you are saying it is "how much over market the place sells for" note that your profit calculation is how much over cost (ie investment)...in other words exactly what I said...Return on investment...the profit calcualtion has nothing at all to do with "how much over market" it sells for...so I will stand by my original statement on that as well...it is all about how much Disney has to lay out now vs how much they get back minus how much non DVC resort bookings they lose...

so let's just say we agree to agree on this --but for some reeaon you think we are not agreeing.....

I did not say they were not planning on going to Disney I said a supply of people that will buy timeshares and if Disney does not offer they will buy elsewhere such as Bonnett Creek or Marriot right outside the gates to Disney Then they can have the timeshare they want and Disney Vacation with out the Disney Hotel expense surely the timeshare market in Orlando did not start with DVC -- I know as a Disney stock holder I am glad Disney decided to accomodate the customer in DVC rather than give it up to nearby competitors

I am also glad I trusted my money to a company that didn't stop after the first hotel for fear of cannabilizing its customers when it built its next one or worse yet let an outside company build to hotels on property ie Swan and Dolphin

I agree it is return on investment where i disagree is where you imply the cost to build is higher than sale price and lost room revenue does not apply as timeshare buyers would have bought from a competitor and not stayed in a hotel room at Disney or stayed in an offsite hotel

As far as not building them everywhere give them time they are obviously profitable