RESALE POLICY CHANGE!

[bobbiwoz]

I confirmed with Member Administration today that the new Membership Extras exclusions do not apply to already existing members who purchased resale before April 4,2016, and they will not apply to your children who, after April 4,2016, receive your pre-April 4,2016 membership interest via a gift or inheritance transfer from you.

Well, the inheritance transfer is a surprise, a good one. I had originally read it wrong, that children would not get the " benefits " of original buyers.

 

[KAT4DISNEY]

Well, the inheritance transfer is a surprise, but I guess suspected, otherwise you would not have asked.

It was how they handled the gifts/inheritances after 2011 too.

 

[hayesdvc]

I have a small add on contract that should close later this month. When I signed the contract the first of March, I emphasized to the broker and title company that I wanted this contract to reflect my current DVC membership number when filed with the Mouse. All my contracts are resale (same names on title and UY).

I have some concern that if combined to the existing membership number, will my friends at Disney consider the contracts associated to the membership in the "last in" method hence considering my membership in the new policy category.

Should I request the new contract to be a new membership and just tie to two together on THE DVC web site?

I guess I am a little paranoid.

What do you think I should do ?

 

[supersnoop]

Disney did not receive $130 gross income of these points. They receive $130 in revenue per point. Gross income would be purchase price minus the cost of goods sold. That would equal gross profit / gross income.

Gross income = revenue. They did receive $130 per point in that example. You're describing "net income" or "margin."

 

[supersnoop]

What do you think I should do ?

Sto worrying. You're membership date doesn't change when you add on. The 2011 restrictions applied to the points. But not of these restrictions are point-related. These restrictions are based on the membership.

 

[TagsMissy]

I have a small add on contract that should close later this month. When I signed the contract the first of March, I emphasized to the broker and title company that I wanted this contract to reflect my current DVC membership number when filed with the Mouse. All my contracts are resale (same names on title and UY).

I have some concern that if combined to the existing membership number, will my friends at Disney consider the contracts associated to the membership in the "last in" method hence considering my membership in the new policy category.

Should I request the new contract to be a new membership and just tie to two together on THE DVC web site?

I guess I am a little paranoid.

What do you think I should do ?

I don't see this becoming an issue. You are already an existing member with an older recorded Deed I doubt adding on will cause issues.

 

[RedM94]

Gross income = revenue. They did receive $130 per point in that example. You're describing "net income" or "margin."

Gross income does not equal gross revenue.

For Businesses
For a business, gross income has a slightly different meaning. Often it will appear on a public company's income statement as either "gross income" or "gross profit." If it is not present, it can be calculated by subtracting the cost of goods sold (also called cost of revenue and other variations) from total revenue (also "total sales" and other variations):

gross income = total revenue – cost of goods sold

Gross income and revenue are two different things.

 

[CMNJ]

Good point never thought of that, but current member can still buy a different use yr to get another membership number.

People have quoted elsewhere you can buy 25 points as a new member. I thought that min was 50 points. But DVD can raise that too.

Not sure if it has changed but I know as of early last year the minimum was 50 points for a new member

 

[AdamsMum]

When I bought in 2007 it was a 60 pt resale contract at $87 pp. Then before I took a trip I immediately bought another 40 direct at $98 pp. In those days a new purchaser had to buy 160 points if they were buying direct (maybe it was 150). I couldn't afford that outlay. I really would not have considered buying a timeshare because I had heard so many bad things about some of them, but after reading this forum, it was clear to me that there was a Disney difference to this program. I feel like that is getting lost. These changes won't affect me but I don't like the idea of a 2 tiered membership...real members and then 2nd class members. The only perks I've actually used are the 10% discount on merchandise and the TOTWL, so in my opinion unless you go often enough to need an AP the perks that are being lost are not that valuable.

What I do think is that the astronomical increases in direct pricing over the past few new resorts has hurt DVD. Where the difference between my first resale and my first direct contract was $13 pp, now the difference can be $45 - $60 pp or more. I don't think it is worth it to buy at current direct prices just to receive these minor advantages.

I think all of the recent changes have damaged the perception of Disney for the people who are on these and other discussion forums who research their purchase as much as they can. There are still lots of people buying who know nothing of the resale market, and don't know about this fabulous discussion board. I believe Disney will still impress them. I just don't know how a family with kids in daycare, mortgage, car payments etc. can afford or justify $170 pp.

Okay I'll stop now, I think I'm rambling. Main point is, I'm feeling disappointed. I guess I'll get over it.

 

[JimMIA]

Disney did not receive $130 gross income of these points. They receive $130 in revenue per point. Gross income would be purchase price minus the cost of goods sold. That would equal gross profit / gross income.

You're right. I stand corrected.

 

[_auroraborealis_]

To be honest, I think DVC would be selling through if Poly were in the $140 range.

Aulani is a different issue. I think they were angling that to Japanese and Chinese money, and west coasters.

 

[ScubaCat]

I have a small add on contract that should close later this month. When I signed the contract the first of March, I emphasized to the broker and title company that I wanted this contract to reflect my current DVC membership number when filed with the Mouse. All my contracts are resale (same names on title and UY).

I have some concern that if combined to the existing membership number, will my friends at Disney consider the contracts associated to the membership in the "last in" method hence considering my membership in the new policy category.

Should I request the new contract to be a new membership and just tie to two together on THE DVC web site?

I guess I am a little paranoid.

What do you think I should do ?

I asked that exact question yesterday, being in the exact same situation, via the member services chat (worked very well... I'd use it again for sure) and was assured I would retain the benefits. I have the 'official' system generated transcript in my email. If it ever becomes an issue, message me and I'll send it to you.

 

[southerngirl528]

Add to this that a DVC Contract that does not go through resale simply remains in the inventory of the original owner/s. The longer an owner holds on to the account the less likely they are to use it ... creating 'breakage.' Thus, Disney gets their Annual MF on the unit *and* gets to rent it out as 'unused' to a 'once in a lifetime guest' who will be spending $$$ in the parks, shops, ding venues, etc.

I can count on one hand the number of times I have spoken to members that don't use their membership. They may be out there but I can assure you it is a small number. Most long time members I know (and I am one) have added on multiple times, including fairly recently. If someone isn't using their membership, they do not understand fully how it all works. In a worst case scenario they can rent out a rez or donate a stay to a worthy charity like Give Kids the World, for example.

 

[RedM94]

You're right. I stand corrected.

Thank you. Just trying to keep all the facts and figures straight.

 

[Sammie]

To be honest, I think DVC would be selling through if Poly were in the $140 range.

Aulani is a different issue. I think they were angling that to Japanese and Chinese money, and west coasters.

Definitely about Aulani, then Japan had the horrible tsunami and earthquake just prior to Aulani opening.

 

[southerngirl528]

Do a lot of people revert there points back to Disney unused? Barring a sudden cancelation of a trip, I couldn't see ANY reason I would let points go unused.

Absolutely agree! Same here.

By the time the owner reaches their 10 year anniversary, they've possibly experienced one or more life changes (loss of job or spouse; relocation) and they cut back their use. During those same years the rules regarding their timeshare use change ... and who has time to keep up?

Hmm. I must be a weird exception. I have gone through all of the above and am past 20 years as a member. I have a nice sized amount of points and I always, ALWAYS use them. I already have booked air for my next trip to Aulani though I can't even book yet. I work with someone that has 1000+ points. And they're not a young person. They bought a year before I did.

most are not nearly as knowledgeable as folks here.

That is an awfully broad generalization. Do you have any sources to back that up? I'm very good at handling my membership and I know and have met folks that make me look remedial.

To the church finance committee, you are considered a Tithing Unit.

Whoa, maybe it's time to change your church!

People have quoted elsewhere you can buy 25 points as a new member. I thought that min was 50 points. But DVD can raise that too

You are correct that the absolute minimum master contract bought direct from DVC is 50 points. 25 points is the minimum member add-on.

 

[ziravan]

To be honest, I think DVC would be selling through if Poly were in the $140 range.

Aulani is a different issue. I think they were angling that to Japanese and Chinese money, and west coasters.

DVC had two months in a row this year of 70-75 thousand point Poly months at $168

They offered a special last month that dropped the effective price to $154 and BAM! 135k point month.

OKW was way underpriced. Turns out, the market could bear quite a bit more. DVC has spent the last decade fishing for the extreme end of that forbearance.

Here it is.

It's not the resale market hurting sales. They're overpriced. Reduce the price into the $150 range and Poly takes off.

Despite the resale market.

Flipping off the resale market isn't going to increase direct sales. But. Extending another special offer through to Oct that again prices Poly in the $150 range, that's the ticket.

The fix for Poly sales is the rebate.

Now. If DVD combined the rebate with an extra FP per day when members and guests stayed on points, Poly would sell out by the end of year and Aulani would even see marked improvement.

This is why I believe penalizing resale buyers was unnecessary and therefore: spiteful.

 

[maburke]

What I do think is that the astronomical increases in direct pricing over the past few new resorts has hurt DVD. Where the difference between my first resale and my first direct contract was $13 pp, now the difference can be $45 - $60 pp or more. I don't think it is worth it to buy at current direct prices just to receive these minor advantages.

To be honest, I think DVC would be selling through if Poly were in the $140 range.

I think this is an essential point. DVD is penalizing resale buyers to try to force/encourage more of them to buy direct. But I think it just indicates that they've raised their prices just too high. I think that there was no reason to do all of this; just discount the prices of direct, and you'll get buyers.

ETA: Sorry, Ziravan, we were positing at the same time, and you said it better than I did.

 

[_auroraborealis_]

I think Aulani is a slightly different problem. Still overpriced, but not the same problem.

 

[maburke]

I also am extremely curious about how exactly the perks are being paid for. (Not the discounts, I assume those are just negotiated with Parks.) For example, I assume that the 25th anniversary parties and Merry Member Mixers are not open to new resale buyers. But I had assumed that our dues were being used to pay for these. (Others on this board assumed the same, and said that's why there was no sales talk at these, because then DVD should have to pay for them. In fact, a lot of people complained that our dues were paying for the 25th parties that gave short notice, so few members could benefit from them.) But if they're being paid for out of dues, all members paying dues should get them. (Just as, for example, members should not be charged for resort parking since our dues pay for parking lot upkeep.) So now people are saying that they must be paid for by DVD if they can remove them from some members. Does anyone know for sure?