SSR Price Increased to $120/pt.

[BWV Dreamin]

After speaking with MS QA, I was told SSR increased to $120/pt. This price has also been confirmed on DCL. Any speculation as to why such an increase when just last week was selling for $95/pt?

 

[JimMIA]

Somebody went nuts?

 

[DebbieB]

Wonder how many points they will sell?

The part that doesn't make sense is the bottom is falling out of the resale market because they are not doing ROFR. Who would pay $120 when they could get it for less than half of that?

 

[JimMIA]

If this is true, it looks like SSR direct will be selling for close to DOUBLE the resale price.

The only thing I can think is that DVC may see an uptick in resale prices. They obviously have the complete view that we don't because they see every resale contract submitted for ROFR. I've noticed in recent days that a number of medium-sized OKW contracts have sold, whereas none were selling a couple of weeks ago.

 

[tjkraz]

Maybe it's $120 per point with a $25 per point discount.

Disney seems to intentionally be pushing a lot of sales toward BLT. They hold daily sales presentations at BLT and it's the Walt Disney World option which appears to be getting most of the press at the expense of AKV and SSR.

My guess is that they are trying to sell as many Bay Lake Tower points as possible at $110-120 each before the resale market starts to impact BLT. Once BLT is "sold out", they may have to bite the bullet and heavily discount SSR and AKV in order to remain competitive.

But for the time being, my sense is that they are using unrealistically high AKV and SSR pricing simply to help make BLT look good. As in: "why pay $120 per point for SSR or AKV when you can get lower dues and more years at BLT!"

 

[BWV Dreamin]

BLT has been selling well, even at the raised ppt and minimum discounts. I don't think the reason is to push BLT. It's been posted SSR and AKV sales have been less then expected. There must be some other reason.I wonder if there are going to be subsequent increases in BWV and BCV, or any of the sold out resorts.

 

[tjkraz]

BLT has been selling well, even at the raised ppt and minimum discounts. I don't think the reason is to push BLT.

Maybe, maybe not. But let me illustrate my point.

You go into a restaurant. They have a ribeye steak on the menu for $25 and a filet mignon for $35. Some people will choose the ribeye and some will choose the filet mignon. Personal preference will come into play but price also plays a factor.

But what if the ribeye and the filet mignon are BOTH $35? The scales tip dramatically toward the filet mignon and the restaurant earns more revenue per diner.

Economics has a term to describe this practice--I'm blanking on it at the moment.

The other thing it can do is help remove uncertainty in buyers. Having multiple properties available can be a good thing, but the different price levels, dues levels and contract years can also be confusing to buyers. The idea may be to move more people from "I really need to think about this more" to "wow, BLT looks like a great deal--sign me up!"

I agree that BLT has been selling much better than other locations, but that means DVC really doesn't have much to lose. They are sacrificing meager SSR and AKV sales in the interest of making people more confident in a BLT decision.

And if they can get BLT closer and closer to sell-out before its resale market explodes, so much the better. Right now there are only a small number of BLT contracts available resale and the price is within a stone's throw of direct.

 

[wdrl]

If SSR's price is $120.00/point, then it must be a very recent change. There is a lag of about 10-14 days after the buyer has submitted their paperwork to DVD before the deeds are recorded on the OCC website. However, deeds posted through 10/19/2010 at OCC still show a Sales/Consideration value of $95.00/point.

SSR direct sales by Disney have been very good recently with 23,647 points recorded on the OCC website in September 2010. Sales in October 2010 have actually been better: Through 10/14/2010, 17,181 points have been sold, which extrapolates to 36,080 points for the month.

I doubt that Disney is actually selling SSR at $120/point. Like tjkraz says, SSR's real price will reflect incentives that will bring it down to $100/point or less.

An increase in SSR price is probably not driven by Disney running out of points to sell. Rather, Disney still has a lot of SSR points to sell. The THV Units (of which only half have been declared for the membership) brought about 905,250 points into the SSR inventory. To date, Disney has only sold about 203,000 of these points. Almost all of the SSR points Disney has sold in the last four months have come from Units that were declared prior to 2009.

 

[BWV Dreamin]

Call your guide. It is for real...$120/pt. for SSR. The price changed yesterday.

If SSR's price is $120.00/point, then it must be a very recent change. There is a lag of about 10-14 days after the buyer has submitted their paperwork to DVD before the deeds are recorded on the OCC website. However, deeds posted through 10/19/2010 at OCC still show a Sales/Consideration value of $95.00/point.

SSR direct sales by Disney have been very good recently with 23,647 points recorded on the OCC website in September 2010. Sales in October 2010 have actually been better: Through 10/14/2010, 17,181 points have been sold, which extrapolates to 36,080 points for the month.

I doubt that Disney is actually selling SSR at $120/point. Like tjkraz says, SSR's real price will reflect incentives that will bring it down to $100/point or less.

An increase in SSR price is probably not driven by Disney running out of points to sell. Rather, Disney still has a lot of SSR points to sell. The THV Units (of which only half have been declared for the membership) brought about 905,250 points into the SSR inventory. To date, Disney has only sold about 203,000 of these points. Almost all of the SSR points Disney has sold in the last four months have come from Units that were declared prior to 2009.

 

[DenLo]

Call your guide. It is for real...$120/pt. for SSR. The price changed yesterday.

Are you saying that DVC is not offering any discounts on SSR? DVC offers discounts for BLT which has been priced at $120 for months. We just did an add on for 50 BLT points at $112.

I think by increasing the price at SSR to $120 per point, the direct sales of SSR will decline just like they did for AKV.

 

[BWV Dreamin]

Are you saying that DVC is not offering any discounts on SSR? DVC offers discounts for BLT which has been priced at $120 for months. We just did an add on for 50 BLT points at $112.

I think by increasing the price at SSR to $120 per point, the direct sales of SSR will decline just like they did for AKV.

There is some type of incentive, but I don't think it brings the overall price near the $95/pt. price from last week. I wasn't interested in buying SSR so I didn't inquire specifically about it. I was just shocked to hear how high the new price was.

 

[newyorkmike]

The current incentives for SSR at the new $120 price are $8 off for purchases of at least 100 points and $12 off for purchases of 150 points or more. Nothing close to the $95 a point it was two days ago.

 

[Mouse511]

I cant believe they increased them to 120......not sure I understand that when they are selling at 60ish on resale.

 

[Garthilk]

Hmm,

If anything this makes the resale market look all the better for perspective customers.

 

[Sammie]

My opinion, I agree with TJ, this is a push to sell BLT, which is not selling as well as we might be lead to believe.

Also they need money from members to fix what is wrong with it.

SSR which might not be the favorite DVC child here on the DIS is aging extremely well compared to other resorts.

 

[otterpop]

Could this have something to do with ROFR?

Maybe Disney will ROFR all resale purchases, forcing new buyers to purchase directly from Disney at their "inflated" prices??? This could be a way for Disney to "shut down" the resale market...

Evan

 

[DebbieB]

Could this have something to do with ROFR?

Maybe Disney will ROFR all resale purchases, forcing new buyers to purchase directly from Disney at their "inflated" prices??? This could be a way for Disney to "shut down" the resale market...

Evan

I doubt they would want to take on alot of SSR inventory since they have a hard time renting those rooms through CRO plus I can't imagine that there are alot of people who want SSR over AKV or BLT. Recent reports are they are letting everything pass ROFR, down into the $50's in some cases.

 

[wdrl]

. . . I can't imagine that there are alot of people who want SSR over AKV or BLT.

SSR sales have consistently outpaced AKV sales in July, August, and September 2010 (see http://www.disboards.com/showthread.php?t=2526238). And so far in October, SSR is outselling AKV by more than a 4-to-1 margin. Thus, the numbers seem to show that there are a lot of buyers who prefer SSR over AKV, at least at this point in time.

 

[twooley2]

they are intending some upgrades or refurbishments to this resort. This may play a part.

 

[Sammie]

My extended family loves SSR, just because it has never been the darling of this forum, does not mean it is not well received.

The new Paddock pool will be a great addition and I think THV were also as they allow 3 bedrooms for the points of a 2 bedroom.

Many also really enjoy the golf, spa and being close to Downtown Disney. Not everyone that goes spends every day in a park.