SSR Downside?

[ClarabelleCow]

If the SSR was selling as fast as it is, why would they offer incentives to purchase? They must have realized that by upping the price to $95.00, they may have out priced them selves. Otherwise why would they be giving away park passes, vacations or money off points? Could it be solely becaue you can't use the points for those phases until next year?

 

[jmminarik]

Originally posted by ClarabelleCow
If the SSR was selling as fast as it is, why would they offer incentives to purchase? They must have realized that by upping the price to $95.00, they may have out priced them selves. Otherwise why would they be giving away park passes, vacations or money off points? Could it be solely becaue you can't use the points for those phases until next year?

Could be...cash in hand now (at least a deposit) with a commitment to send more and pay 10% financing is a decent incentive for Disney to offer a discount. Knowing what your cashflow would be and locking people in early is something some financial analysts would like to see.

Plus there's the whole psychology of the thing. Just like we ignore the third decimal place in gasoline prices, most people will simply look at the actual price and not the retail price. When Disney's ready, they take away the discount and the 'shock' of full retail is somewhat less than the shock of a price increase. Most people will go 'Darn' when a discout goes away, but they'll scream 'RATS!' when the price goes up. (Interjections, show emotions or excitement, generally followed by an exclaimation point, or comma when the feeling's not as strong. )

Of course, i could be wrong.
-Joe

 

[Johnnie Fedora]

Buy where you want to stay, or buy the "cheaper dues DVC" like HH or OKW and stay at SSR at 7 months.

 

[DrTomorrow]

Originally posted by jmminarik
[...]Most people will go 'Darn' when a discout goes away, but they'll scream 'RATS!' when the price goes up. (Interjections, show emotions or excitement, generally followed by an exclaimation point, or comma when the feeling's not as strong. )

Indubitably!

 

[DrTomorrow]

Originally posted by ClarabelleCow
If the SSR was selling as fast as it is, why would they offer incentives to purchase? They must have realized that by upping the price to $95.00, they may have out priced them selves. Otherwise why would they be giving away park passes, vacations or money off points? Could it be solely becaue you can't use the points for those phases until next year?

In addition to what jmminarik said, there's also the marketing approach DVC's been using - the "you have three days to decide" routine. Offering a discount - but only having it available for a limited amount of time - helps lend a sense of immediacy to the situation. One of the biggest issues in sales is convincing the buyer to "buy now" - to avoid the "we'll get back to you" kiss of death.

Also, there are a lot of people who need to feel as if they are "getting a deal". Way back in my youth, I worked at a grocery store, and we used to say that if we put all of the old, bruised and rotten produce in a bin marked "5 cents / lb" we'd sell all the stuff we normally threw away....