Price increases soon?

[joeytdog]

Just a few weeks ago, there was a webcast that offered BLT for as low as $92

Now 2 months later, they are going to raise that price by 30%?

I dont think so

I seriously doubt this is nothing more than rumor

Anyone who pays 30% more is either crazy or completely uninformed

30% increase almost overnight

What product/service does that?

Oh and did I even mention in this economy?

 

[TLSnell1981]

30% increase almost overnight

What product/service does that?

Oh and did I even mention in this economy?

Uh...Disney.

There was speculation they originally wanted the $120 price per point, but the economy affected the initial offering (price). It doesn't surprise me in the least....if this is true.

 

[Crystal_27]

Put another way, I would think that making the base price $120 and giving a $20 per point discount, instead of $112 per point with a $12 discount, works out better in the long run for disney because even if just a few people pay the $120, you're ahead, and the price is not so outrageous that you can't tolerate scaring a few people off with the $120.

YUP - I agree with that. And, just think about how excited those people are to be getting a $20/point price break. They're going to be thinking they've won the lottery.

Just a few weeks ago, there was a webcast that offered BLT for as low as $92

Now 2 months later, they are going to raise that price by 30%?

I dont think so

I seriously doubt this is nothing more than rumor

Anyone who pays 30% more is either crazy or completely uninformed

Well, the webcast was limited to very few, so I don't even consider that a true incentive. BUT, I think that there are people who are still going to be flocking to BLT even at $120/point (less whatever applicable incentives DVC is offering). It wouldn't surprise me if DVC was trying to hold onto BLT points as long as they can, and if they can get people to continue to buy at $120/point, who knows how high the next price point will be. AND, as an aside, these price points definitely aren't boding well for DVC Hawaii being reasonably affordable either.

 

[mac_tlc]

I wholeheartedly agree with this. DVC always tells you that points are points are points, and it's going to make people REALLY convince themselves that home resort isn't really *that* important when they can get AKV or SSR at $85/point versus BLT at $120/point. And, for those who still want BLT, DVC is going to be laughing all the way to the bank (like it doesn't already - LOL).

I think this is exactly the situation. BLT is going strong, AKV not as much (or so it seems). As someone who always wanted an AKV add-on, but now will probably do one at BLT, the situation is easy:

1) I think it wil be easier to get AKV SV at 7 months than BLT MK view at 7 months.

2) With the current $8/pt differential for BLT over AKV for a 100 pt add-on, it only takes about 7 years of lower maintenance fees to cover it. Not a bad deal for a 50 year term. ( I hope my kids and grandkids appreciate this then!)

To change that analysis the spread has to go up.

Sounds like I need to place a call to my guide soon...


mac_tlc

 

[DonDiegoDeLaVega]

We bought at AKL last June @$92/point...this past Fathers Day..in a DVC show in Boston..My wife and kids bought into BLT for me with incentives also @$92/point...i guess if the story becomes true i will be happy as hell they did as i was going to wait and buy in the Xmas time.....I can't help thinking maybe they will be building the other Tower as talked about because of all the demand they presently have for BLT....(look at the October ressies, sold out for the month for the most part)...and at this point its "supply and demand"
so they can charge the increase and people seem to think this is a last chance opportunity....better buy one before its gone!!!!

 

[Sandisw]

YUP - I agree with that. And, just think about how excited those people are to be getting a $20/point price break. They're going to be thinking they've won the lottery.



Well, the webcast was limited to very few, so I don't even consider that a true incentive. BUT, I think that there are people who are still going to be flocking to BLT even at $120/point (less whatever applicable incentives DVC is offering). It wouldn't surprise me if DVC was trying to hold onto BLT points as long as they can, and if they can get people to continue to buy at $120/point, who knows how high the next price point will be. AND, as an aside, these price points definitely aren't boding well for DVC Hawaii being reasonably affordable either.

My guide alluded to that a month ago when I was talking about doing another BLT add on in the winter. He said that one of the reasons that the BLT incentives would be reduced is to slow down the sales there in order to get more people to go for AKV and SSR.

I don't know the history, but it seems like there are always some sort of incentive off the base price. And, there are so many people out there that will buy something that is heavily discounted, simply because it seems like they are getting a bargain, when in fact, the bottom line price may be the exact same as something else.

So, if Disney puts BLT to $120.00 and then sales fall off too far, they simply add a discount. I think that is exactly what they did when it went on sale. First, just the $112.00. Then the added matching developer points. Then they added the $5.00 off discount and the cruise. Then they changed and also offered straight discounts of up to $16.00 off per point (plus the even better ones via the webcast). Then they backed off and reduced them. So, its a number game for Disney and they play it so they can speed up or slow down the sales to meet their own needs.

 

[whitfamily]

As a perspective buyer (I have rented points the last 3 years) who almost took the plunge in the last few months

I would say anything above $100 and I wouldnt even consider DVC and I cant imagine them having the "cahoonies" to try and charge $110-$120 pp

JIMO

That would be completely and utterly outrageous

And this is simple supply and demand economics. Disney seemingly has no new DVC properties being developed at WDW Resort. So, drive up the price once you reach a manageable sales amount and sell your supply at a higher dollar figure.

And if DVC truly thinks BLT is worth $120/pt you'll see the resale market jump up as well on the property.

 

[dizfan]

Maybe for you (and certainly for me). But, if there are still enough people left who would buy at a higher price, then DVD would be negligent to the shareholders not to charge it.

Over 12000 contracts and 2,000,000 points sold in just over 10 months during a horrible economy speaks for itself. Imagine if this was an economy like the 90's

 

[dizfan]

Well, the webcast was limited to very few, so I don't even consider that a true incentive.

Or guide said there were 2000 people in each of the three web casts.
I know, it's a guide talking, but if that's the truth, that's 6000 people who had the chance at those incentives.

 

[mac_tlc]

Called my guide this afternoon and put in motion a 100 point add-on at BLT, as much to hold the current pricing as a need to buy (but, really, who needs an add-on). Was told that the additional $6 per point incentive (for 100+ pts) that was to expire on 8/25 is only good through Saturday. I have an April UY so I get the '09 points at somewhat of a reduced total cost since the dues would be prorated. Decided to do 2 50-point contracts for flexibility and since we have 2 kids (although, some days the split might be different than 50/50!).

Also confirmed the price increase to $120 on 10/4, although the indication was that for add-ons we may have more time before the price goes up. The $120 was going to happen then for newbies.

Seems VGC sales are very slow, and the $500 VISA promo is "stackable" with the current VGC incentives. Hint was that for WDW DVC's it would not be stackable (sounds like it may be coming out next week in place of current incentives).

Have 30 days to send in the final $$$, so we will see what the incentives change to and what may be available in NY since we are about 90 minutes away. Too bad we missed out on this weekends activities, anxiuos to hear the offer for those who are going.

mac_tlc

 

[maburke]

AND, as an aside, these price points definitely aren't boding well for DVC Hawaii being reasonably affordable either.

Except that VGC sales are MUCH slower than expected. Remember when they had us believing that they wouldn't make it past founding members, let alone to the general public?

 

[wdrl]

Over 12000 contracts and 2,000,000 points sold in just over 10 months during a horrible economy speaks for itself. Imagine if this was an economy like the 90's

Another indicator of BLT's dominance in sales is seen when you look at total contract sales for the period October 2008 through July 2009. According to Dvcnews.com (see http://dvcnews.com/index.php/dvc-program/financial/dvc-sales-statistics), the number of direct purchase deeds recorded in the 10-month period ending July 2009 was 20,397. This covered all Disney resorts except Vero Beach. I know dizfan's data for BLT counts deeds through mid-August 2009, but still it is safe to say that BLT accounts for 60% or more of all Disney sales. In addition, when viewing the deeds on the OCC website, you can see the master contract number for each deed. BLT master contracts start with '10'. It appears that Disney has sold over 9,400 master contracts for BLT. Like dizfan, I wonder where BLT sales would be today if the economy was better.

 

[Tiger926]

We love being DVC members, but that price is utterly ridiculous. We would never in a million years pay that price. If people keep paying, Disney is just going to keep raising...

It's a vicious cycle that we refuse to become a part of. We contemplated buying into BLT for a minute when our guide called. We saw the photos and watched the construction and due to our love of the Contemporary, we gave our guide the time when he called us. But now based on the ridiculously high point charts, small studio sizes and other little quirks that are being reported on here, we aren't that upset at all. We own at SSR (we haven't stayed there much in the past couple of years as the location is not that great with kids as Downtown Disney is just too noisy and out of control anymore), and AKV. We absolutely love the Epcot area best, but again, we refuse to pay crazy prices for more points - we are going to make do with our 300 points and be happy that we can vacation to Disney for about 2 weeks each summer in a 1 bedroom villa. We have been having luck getting BCV and BWV both at 7 month marks, so that is working out well for us thus far.

Price is way too steep for us - it will be interesting to see how many others feel the same way we do. We love Disney, but those prices are ridiculous, IMHO. We are proud of ourselves for not falling into the add-on cycle that I see so many DISers become a part of. Our other contracts are paid off, so no add-ons around here!

Tiger

 

[karrit2000]

So, the current incentive for BLT of $13 with a referral for new members buying 200 points is ending this Saturday. Do the event incentives stay the same throughout the event? I am thinking since the Garden City event begins tomorrow and usually has better incentives than the current offers that the price may be in the $96-98 range. Of course this is just speculation but I would appreciate anyone going on Friday to list the incentives so I know what I may be in store for on Sunday. Even though $120 per point seems very high, I believe the proximity and convenience to the MK will continue to drive the demand since the other monorail resorts are so expensive.

See my post for details of the incentives for current members offered at the event on Friday night.
http://www.disboards.com/showthread.php?t=2269888

 

[baylakebisi]

IMO--The point increase gives Disney some financial stability because the down payment is based on the non-discounted point value and therefore the down payment amount to Disney will be greater. Marketing wise, Disney can still offer incentives that will appear to be greater than now, but in reality the deeper incentives, would just bring the price closer to the current price after any incentives.

 

[thelionqueen]

Called my guide this afternoon and put in motion a 100 point add-on at BLT, as much to hold the current pricing as a need to buy (but, really, who needs an add-on). Was told that the additional $6 per point incentive (for 100+ pts) that was to expire on 8/25 is only good through Saturday. I have an April UY so I get the '09 points at somewhat of a reduced total cost since the dues would be prorated. Decided to do 2 50-point contracts for flexibility and since we have 2 kids (although, some days the split might be different than 50/50!).

Also confirmed the price increase to $120 on 10/4, although the indication was that for add-ons we may have more time before the price goes up. The $120 was going to happen then for newbies.

Seems VGC sales are very slow, and the $500 VISA promo is "stackable" with the current VGC incentives. Hint was that for WDW DVC's it would not be stackable (sounds like it may be coming out next week in place of current incentives).

Have 30 days to send in the final $$$, so we will see what the incentives change to and what may be available in NY since we are about 90 minutes away. Too bad we missed out on this weekends activities, anxiuos to hear the offer for those who are going.

mac_tlc

OK so I must've missed it, what is the $500 Visa promo w/GCV?

Also I agree that BLT will continue to sell, even for $120 a point. It seems to me that BLT is the driving force to get prospective buyers on tour and to purchase. They're trying to "showcase" AKV, but BLT is clearly stealing the show and lion's share (no pun intended) of the sales.

If they do raise the price and even half of prospective buyers pay it, then great! They slow BLT sales and have new buyers paying a premium cost, which I think is totally realistic.

If the sales drop off, all they have to do is add an incentive, which we all know they do at whim.

I think they want to hold on to their "flagship" DVC to entice people to tour and buy. If it sells this quickly, then obviously they can charge more and should. They don't want BLT to be sold out and have no "cheese for their mice".

I also think it's funny that someone thought it was a bad idea to raise the price only to lower it again; have you ever bought retail? That's ALL they do and had to have laws govern their pricing. Do you really think MSRP is what people are willing to pay? Some do with no problem, but most will not. It's only a "jumping off point" for added discount and negotiation, why would DVC do any differently? Reminds me of how many people flock to Kohl's, the masters of raising prices to offer big discounts. People fall for it every single day and I know I'm guilty of it on occasion as well.

I'm just so thrilled I bought DVC last fall, I got DP's and paid just over $80 per point. Of course I would say "raise the price"
doubt I would be singing those praises as a prospective buyer today

 

[Roveer]

Once that I knew that some paid 92/point at BLT. I'd never consider paying one dollar more. What's makes anyone get that rate over me? Even at 92/point I just don't see the value.

 

[lark]

Know that I knew that some paid 92/point at BLT. I'd never consider paying one dollar more. What's makes anyone get that rate over me? Even at 92/point I just don't see the value.

I really don't understand your argument. If you happen to be in the supermarket the day they decide they want to sell extra milk and they price it at 99 cents a gallon, great for you. If you show up the next day and it's back to $2.99 and you demand the price they got yesterday, they may say yes, but they likely will laugh at you.

This is the way it goes. Supply ebbs and flows. So does demand. And prices change accordingly. Feel free to wait until BLT is offered against at $92, if that happens. Nobody is forcing anyone to buy. But I don't think disney is really thinking too much about any one putative purchaser who missed out at $92 per point when it prices its timeshares. I could have bought BLT at $98 per point last spring, but passed. I should have taken it. I also should have bought stock in Google when it was $10. When the $101 was offered, I took that. If that's too much for you, to each his own. We all have our own views of value, and disney's apparently is that they can sell BLT with a base of $120 with incentives off of that. If what you're really saying is that disney is wrong, we'll see. My money is that they know what they are doing and have access to way more data than any of us.

 

[Roveer]

I really don't understand your argument. If you happen to be in the supermarket the day they decide they want to sell extra milk and they price it at 99 cents a gallon, great for you. If you show up the next day and it's back to $2.99 and you demand the price they got yesterday, they may say yes, but they likely will laugh at you.

This is the way it goes. Supply ebbs and flows. So does demand. And prices change accordingly. Feel free to wait until BLT is offered against at $92, if that happens. Nobody is forcing anyone to buy. But I don't think disney is really thinking too much about any one putative purchaser who missed out at $92 per point when it prices its timeshares. I could have bought BLT at $98 per point last spring, but passed. I should have taken it. I also should have bought stock in Google when it was $10. When the $101 was offered, I took that. If that's too much for you, to each his own. We all have our own views of value, and disney's apparently is that they can sell BLT with a base of $120 with incentives off of that. If what you're really saying is that disney is wrong, we'll see. My money is that they know what they are doing and have access to way more data than any of us.

If you wanted to buy a house listed at 250k and you were thinking of offering 245k but then you found out that they had accepted 240k but the deal fell through, would you be willing to pay 250k or 245k or 240k?

This is the market. If many hold out for 92/point then then price will be 92/point. That's how I see it. The buyers make the market, not the sellers. But I support anyone's decision to pay whatever they feel it is worth to them.

For us BLT just didn't WOW us. The decor for our young kids just doesn't seem like home and afterall, when we get there and they say welcome home, I really want it to feel that way. We never stayed at the contemporary by choice so I guess it goes to say that the modern look isn't for us.

 

[lark]

If you wanted to buy a house listed at 250k and you were thinking of offering 245k but then you found out that they had accepted 240k but the deal fell through, would you be willing to pay 250k or 245k or 240k?

This is the market. If many hold out for 92/point then then price will be 92/point. That's how I see it. The buyers make the market, not the sellers. But I support anyone's decision to pay whatever they feel it is worth to them.

For us BLT just didn't WOW us. The decor for our young kids just doesn't seem like home and afterall, when we get there and they say welcome home, I really want it to feel that way. We never stayed at the contemporary by choice so I guess it goes to say that the modern look isn't for us.

I don't disagree with much of this, except some of the premise. I just think the reality is that sales have been brisk at $101 and $107 a point, and sales at VGC and AKV have been less than brisk, so disney is jacking up the base price and will fine tune with incentives.

Sure, if all buyers could effectively communicate and create a buyer's cartel, disney would have to come down. That's definitely true.