NEWS: DVC cuts sales associates' base pay

Although the government is telling us that inflation is in the negative, I can only think of one thing in life who's price has dropped from last year: Gasoline, and that's just because it was horrendously over inflated to start with. Every other thing in life has increased in cost. I believe the only ones seeing this "deflation" are the corporations themselves

Not to get to far on a tangent, but...

I'm out in California, so "your millage may vary", but we've seen price reductions in food (supermarkets have big banners declaring "price wars"), cars (cash for klunkers temporarily reversed this), toys (atvs, pwcs), houses, services, and restaurants. "Deflation" in the popular sense seems to be ongoing, except where the government has shoveled out money to prop up an industry (again, see cash for klunkers and the housing tax credit).
 
Reduing pay and increasing performance incentives is a very good and powerful tool to weed out low performers, give all employees a chance to step up their game and to give high performers a chance to excel and reap the financial benefits of their abilities. This move isn't likely about saving money as much as it is getting more performance for around the same money. In the timeshare industry these type positions are called OPC's (Off Premises Contacts). The difference for DVC is they are actually employees rather than contract or independent as they are for most timeshares.

Possibly, but in my experience when compensation programs are redesigned they are done so to do two things 1) reduce costs 2) align pay with profit drivers.

Looks like Mr. Lewis is moving DVC closer to the timeshare norms. Wonder if his colleagues in ARDA are all over him to conform. So I guess high pressure and disreputable sales tactics are headed to Disney. That sure is a heck of a conflict with the traditional Disney brand.

That action is also consistent with a broader reduction in worker pay across the country.

U.S. pay cuts are most frequent since the Great Depression

"U.S. workers are being given pay cuts more frequently than at any time since the 1930s, based upon Bureau of Labor Statistics data. The agency doesn't directly measure pay cuts, but it said that an unprecedented drop in weekly pay shows that people who still have jobs are getting pay cuts. Pay for production workers has been declining for nine months in a row, the longest period since the agency started collecting the data. "What this means is that the amount of money people are paid has taken a big hit; not just those who have lost their jobs, but those who are still employed," said Thomas Nardone, an assistant commissioner with the agency." The New York Times (10/13)
 
So if someone is single and they decide to tour, does the sales rep only get credit for a solo?

They are going to become like those annoying credit card people in the airport, trying to hunt you down.
 

It seems there is some confusion about the article in the Orlando Sentinel on the pay reduction at DVC. The reduction is for the Advanced Sales Associate (ASA), not the Vacation Club Guide. An ASA are those cast members who work at the DVC kiosks in the theme parks and resort lobbies asking interested parties if they wish to take a tour and meet with a Vacation Club Guide and learn more about a Disney Vacation Club membership.

ASA's do not sell, they only book tours for the sales presentation at the Saratoga Springs Preview Center.

Robert
 
I respectfully disagree...while i handle mostly referrals now; i (and most of my independent operator co-workers) was able to reach both my professional and personal goals while working exlusively on sales commisions as a Realtor (some commerical, mostly residential). The system is unique in that many discover after a year or two that the job isn't for them and move onto their life's work.

Perhaps this more competitive situation will inspire a system increasingly geared to referrals/bigger incentives to members who make the initial contact? Referrals are the bulk of most real estate activity. While i realize the TS market is different than traditional type, a sale is a sale.

My point is that while many of their current staff may jump ship, the new hires could easily be seasoned, semi-retired real estate professionals looking to supplement their retirement incomes who aren't looking for benefits.;)

It may depend on the industry. As a former car salesperson, I can tell you with 100% certainity. The more our pay depended on sales quotas the more ruthless and creative we became. In this day with jobs hard to come by, I doubt HIGHLY if any one would "willingly" jump ship even if aboard the titanic. And when was the last time the words "new hire and Disney" could be used in the same sentence.
If they lose sales people I doubt they will be replaced, putting more burden on the remaining staff because depending on the operation, (and once again this is simply from experience in the auto market)they do not lower sales volume quotas because you lose personal. So if Disney wants 20 units sold per month, whether you have 10 or 1 persons, Disney still wants it's 20 units. I have no way of knowing in fact if this is how things work at dvc so all of this is speculation.
 
Not to get to far on a tangent, but...

I'm out in California, so "your millage may vary", but we've seen price reductions in food (supermarkets have big banners declaring "price wars"), cars (cash for klunkers temporarily reversed this), toys (atvs, pwcs), houses, services, and restaurants. "Deflation" in the popular sense seems to be ongoing, except where the government has shoveled out money to prop up an industry (again, see cash for klunkers and the housing tax credit).

Yes, I have noted decreases in food staples, housing, gas etc. There has been lots of reductions from a year ago when many items were getting super inflated.
 
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Not to get to far on a tangent, but...

I'm out in California, so "your millage may vary", but we've seen price reductions in food (supermarkets have big banners declaring "price wars"), cars (cash for klunkers temporarily reversed this), toys (atvs, pwcs), houses, services, and restaurants. "Deflation" in the popular sense seems to be ongoing, except where the government has shoveled out money to prop up an industry (again, see cash for klunkers and the housing tax credit).

I agree with that. Look no further than Disney vacation package prices. Throughout most of 2008 there were no "buy 4, get 7" incentives. "Free dining" was mostly limited to the typical 4-5 week period in the fall. 2009 has been very different.

Prices for most consumer electronics are cheaper (flat panel TVs, game consoles, etc.) Airfare rates are down to more reasonable levels. Even grocery store prices have noticeably declined compared to the period when prices spiked due to high gas (transportation) prices.

As for the DVC issue, like Jason said it's just the booth squawkers who are impacted...not DVC guides. (Although that's not to say that Guides haven't seen changes as well and we just haven't heard about it.)

I don't pay a whole lot of attention to these DVC booths. Many times either me or my wife is probably wearing something that says DVC. She often has her member ID card in a plastic lanyard pouch. So they mostly leave us alone--or give us a "Welcome Home." That said, I've seen people at the booths who were actually trying to engage guests, and I've seen people who looked like they were just trying to do some busy work until the end of their shift.

I hope it doesn't result in more aggressive marketing from these folks. Not that it would impact me directly but that sort of thing is a little embarrassing to witness. 10% is a pretty small reduction. Not to say that people will be happy with it, but it won't lead to a "where is my next meal coming from" level of desperation. Perhaps it will just lead to people being more engaging rather than just trying to coast through the day. :confused3
 
I agree, however, I think it also means DVC sales personell are going to be much more "high pressure" than we are used to.
I hope so, they should be.

My concern Dean is now this will force DVC sales associates to turn to those othe sleezy high pressure sales tatics. How could it not? When you are forced to reach excessively high sales goals in order to get a bonus or now, in order to make a decent salary, you do and say what you have to in order to get the customer to sign.

No different than bankers who made all those "alternative" mortgages to people or a used car salesman. Very sad, because one thing I loved about it was that when we took the tour it was about as low keyed as you can get. I forsee that changing.
I think I've been clear in my position that Disney needs to get in the game. It is very possible to turn up the heat and still be professional. However, even if they stoop to Westgate levels, it doesn't really matter as long as the membership side functions appropriately. IMO, the sales and usage system are totally separate. Any and every system needs to sales side to cont to have good and up to date options. Even at it's worst, it's still a necessary evil. Also don't assume that the current system is that good, actually it's not from a member standpoint if you look past the fluff. It may feel good when you tour or talk to your guide or do the tour but given that the failure of VB and HH has cost us AT LEAST 3 nice off property options and likely more, that's a pretty steep price to pay for the emotional feeling of thinking DVC were different due to being no pressure.

I would agree that unreachable goals are not appropriate, they also don't serve the desired purpose. A goal that is unreachable actually serves as a detriment to everyone. OTOH, if it's unreachable for a given person, but reachable for many others, that often means they're a low performer and the system would be better off without them. Low performers actually drag the system down in general. IF you weed out the low performers, you often see that many of the middle performers move to more in the high performance range. As a rule "projects" who are low performers never improve enough to justify the time, money and energy investment in them. Most every system have those people that have been around a long time but are low performers. No one wants to fire them because they're likable and have bee around a while. But everyone knows who they are and that they are a marginal employee.

Possibly, but in my experience when compensation programs are redesigned they are done so to do two things 1) reduce costs 2) align pay with profit drivers.
The latter is exactly what I'd expect and what I've said. You do better, you make as much or more, you do worse, you make less and below a certain level, you look for another job. Within reason it is a very effective tool. Obviously it requires a balance and appropriate goals. On a side note, you often change those goals over time because once everyone is doing certain things well, you want to stop rewarding that item and start rewarding things that could be done better. Obviously some type of sales incentive should be core with a timeshare sales business.

I've often wondered why they have so many OPC's anyway if they're not really going to use them. If they just sit there and then they chat a little and offer a tour when you show interest, may as well have a phone at the booth and no person and maybe a little video presentation. They NEED to do more solicitation to be effective.

I hope it won't be like walking down the Strip in Vegas?
Not unless they legalize prostitution at WDW. Actually I found the OPC situation at LV to be pretty tame compared to other places including HI, Aruba, Charleston, PV (MX) to name a few.
 
We all need to do our part and help by sharing the magic with others. I think this is horrible. I am expecting to get back the 10% that I had taken away last year just this month (I'm keeping my fingers crossed). It has been horrible. I don't have a sales job and we didn't have incentives to earn anything additional. It was just a 10% cut across the board. Anyway, these guys have got to be stressed and that is not fun. They most likely do what they do because they love Disney. Hopefully, they can keep that spirit.
 
Too bad management didn't make cuts in other areas...like the "Deevy See" video series. I'd prefer that over turning the ASA's into Carnies!
 
Too bad management didn't make cuts in other areas...like the "Deevy See" video series. I'd prefer that over turning the ASA's into Carnies!
They may have but I'd agree that Deevy and the Welcome home are worse than a waste of time.
 
Too bad management didn't make cuts in other areas...like the "Deevy See" video series. I'd prefer that over turning the ASA's into Carnies!

Wise words. I wonder if Jim Lewis is going to take a bullet for the team and give up a percentage of his salary.

Likewise, does Sheila, Nikki and Vilma get a bigger bonus for a greater number of members that they PO with their sticking to the script when responding to member complaints?
 
...doubt HIGHLY if any one would "willingly" jump ship even if aboard the titanic.

...And when was the last time the words "new hire and Disney" could be used in the same sentence.

...I have no way of knowing in fact if this is how things work at dvc so all of this is speculation.

i can't say i know the details of how the TS market operates either in FL,:confused3other than knowing their salespeople must have a license

fyi, while there are some large corporations and rental agencies that hire on a traditional basis; most real estate agents working under a broker aren't 'employees'. We are independent contractors, self-employed to extent we r responsible for paying own federal withholding

we tend to jump ship @ will;)...whichever way the better commision structure/percs (site agents for new construction, etc.) are blowing:thumbsup2

jmho, disney has outsourced buses, valet & probably many more depts...why not DVC or the call centers? While i hate to see this happen, may just be the new business model
 
This seems to me it's about having the DVC sales team be more pushy to get more tours so they can get better pay. So much for low pressure sales..
 
Do the kiosk folk get credit for talking existing members into taking a tour of the newest villas? Seems like they wouldn't as we already have guides.
 
Reduing pay and increasing performance incentives is a very good and powerful tool to weed out low performers, give all employees a chance to step up their game and to give high performers a chance to excel and reap the financial benefits of their abilities. This move isn't likely about saving money as much as it is getting more performance for around the same money. In the timeshare industry these type positions are called OPC's (Off Premises Contacts). The difference for DVC is they are actually employees rather than contract or independent as they are for most timeshares.
I agree. I am in sales and I like that incentives are given to high performers and not just to our team. There are plenty of slakers when it comes to sales if they feel they are making enough without the incentives. In four years when we retire and move to Orlando I will be looking to get into one of these jobs. So I pay attention to these employees and some make a great effort while others just set back and read a book. I wish them all and DVC the best of luck in these hard times.
 
I certainly hope your $1 per point is a typo. Originally the OKW extension offer was $25 per point with a $10 per point incentive from DVC leaving a net of $15 per point

Oops...yes it was a typo. We paid $15 per point to extend for 15 years. I have fixed it in my original post. Thanks for the catch!
 
There are only 2 recission proof and highly paid jobs at DVC... Jim Lewis and DVC_Mikes guide!! :rotfl2:
 



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