SSR Price Increased to $120/pt.

[bookwormde]

Marketing ploy, before 12/1 you will see a huge discount and the uninformed will think they are getting a huge bargain (and of course this discount will be about to expire throughout the next year).

In the mean time it will give a boost to AKV.

bookwormde

 

[JimMIA]

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 seriously if DVC will ever ROFR to the point of shutting the resale market down -- there is no advantage to DVC in doing that. But you may be right that the price increase has something to do with ROFR.

For several months, DVC has been very quiet in the ROFR area. But don't forget that their fiscal year is Oct 1 - Sep 30. With a heavy volume of resales over the last year, they may simply have expended their entire ROFR budget and may have been forced to almost stop. Now that the new fiscal year is here, they may be gearing up to return to ROFRing...or at least doing so more actively than they have the last few months. I've been thinking they would not abandon ROFR for long and would return to using it after October 1.

Time will tell, I guess..

 

[rhonimouse]

There is another thread about a BLT price increase on 12/1 to $130...

http://www.disboards.com/showthread.php?t=2579692


That thread is speculating that Disney may tip the scales in favor of direct buyers vs resales by limiting resale use to only their home resorts, etc. though at this point it is a lot of speculation and it seems the only thing that has been confirmed was the price increase by a DVC guide...

 

[Friendofpluto]

Price increase for existing resorts may mean new incentives since people may buy if they think they are getting a savings. It will be interesting to see what incentives are offered to spur buying for all resorts. How are sells for Aulani? I am sure they are actively thinking of the next resort.

 

[otterpop]

My guess is still that it has something to do with the resale aspect. It makes no sense for anyone to buy SSR at $120 a point, when you can get it for $60-70 resale. Yes, it might make some uneducated (for lack of better words) buyers purchase other properties direct, but I was just reading on another post that BLT prices are going up as well. Think about it...if they ROFR'd everything and forced new buyers into buying direct, Disney is making more money then by not ROFRing resale.

There have been various rumors regarding DVC changing how resale versus direct purchases are treated and this would allow them to not treat either one differently because they can now shut down the resale market (via ROFR) and force everyone into buying direct. This would suck for the resale companies, but do you think Disney really cares about them?

This makes perfect sense...to me!

This should be interesting how this plays out...

Evan

 

[Coach81]

Thank God for resale!

 

[SSR]

Thank God for resale!

...more accurately...thank God for [having already bought 200 pts for half the proposed price at] resale.

 

[jnsolomon]

My guess is still that it has something to do with the resale aspect. It makes no sense for anyone to buy SSR at $120 a point, when you can get it for $60-70 resale. Yes, it might make some uneducated (for lack of better words) buyers purchase other properties direct, but I was just reading on another post that BLT prices are going up as well. Think about it...if they ROFR'd everything and forced new buyers into buying direct, Disney is making more money then by not ROFRing resale.

There have been various rumors regarding DVC changing how resale versus direct purchases are treated and this would allow them to not treat either one differently because they can now shut down the resale market (via ROFR) and force everyone into buying direct. This would suck for the resale companies, but do you think Disney really cares about them?

This makes perfect sense...to me!

This should be interesting how this plays out...

Evan

Disney will not shut down the resale market just by exercising ROFR more. They will not be willing to ROFR everything because it would be a money losing proposition. If they were to try to ROFR everything, resale prices would rise for everyone including Disney. Once they buy a contract back, they still have to market the property and pay the sales staff, and then try to make a profit themselves. They would need a return on their investment that is greater than whatever else Disney would use the money for.

For example if I agree to buy a resale contract at say $85 a point, Disney would have no interest in buying it back, letting it sit on their books and then reselling it for a $20-$25 GROSS profit. Therefore, the resale market would be alive and well, albeit at maybe a higher price point. Just my opinion.

 

[lugnut33]

And yet BLT is not really holding its resale value that well considering contracts are already selling for $92-$95 per point.

 

[BWV Dreamin]

Direct prices have no affect on resales prices. The market determines that, supply vs. demand, etc. There is another reason this is going on. Just have to figure out what that is....

 

[tjkraz]

Direct prices have no affect on resales prices.

Totally agree with that.

DVC holding its resale value for as long as it did was a bonus to owners but Disney obviously isn't going to go to extreme lengths to prop-up values.

Look at other timeshare systems. I could go on eBay now and buy an excellent Wyndham timeshare for a couple hundred dollars. Some contracts are offered for $1 plus closing costs...and don't find any takers.

Meanwhile Wyndham keeps building them and people keep buying them.

I don't think we will ever see DVC values fall to such a degree as long as Walt Disney World is such a sought-after vacation destination. But DVC will continue to sell well direct even with comparative bargains available via resale.

 

[tjkraz]

Turns out this is part of a pretty substantial change in pricing and incentives across the resorts. BLT, AKV and SSR are all $120 base price. Aulani is still $114 for a few days but will rise to $120 on November 1st.

Discounts are identical for all 4 properties:

No discount for up to 99 points
100-249 = $12 per point discount
250+ = $18 per point discount

SSR is obviously more. Add-ons of 50-99 points are more since the incentives have apparently been removed. But I believe everything 100+ is cheaper than it has been for the past several months.

More details here:

http://dvcnews.com/index.php/news-p...nificant-changes-to-dvc-pricing-and-discounts

 

[lugnut33]

Direct prices have no affect on resales prices. The market determines that, supply vs. demand, etc. There is another reason this is going on. Just have to figure out what that is....

I was just trying to point out that eventhough they are raising prices it is not effecting the quick downward trend on resale prices.

 

[gkrykewy]

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.

I think that was clearly because SSR (under prior pricing) was significantly cheaper than AKV.

 

[LIFERBABE]

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

I agree Sammie! SSR is just gorgeous and very well done

I was on the Wonder last week and Meghan at the DCL desk left several messages that SSR was going to $120 a point.

 

[BWV Dreamin]

I agree Sammie! SSR is just gorgeous and very well done

I was on the Wonder last week and Meghan at the DCL desk left several messages that SSR was going to $120 a point.

No one is bashing SSR. You can't ignore the substantial price increase from $95 to $120/pt. That's all thats being talked about on this thread....

 

[LIFERBABE]

No one is bashing SSR. You can't ignore the substantial price increase from $95 to $120/pt. That's all thats being talked about on this thread....

 

[tjkraz]

No one is bashing SSR. You can't ignore the substantial price increase from $95 to $120/pt. That's all thats being talked about on this thread....

Net price change is far less than that. It went from net of $95 to $108/$102 depending upon the volume of points purchased.

One thing none of us can answer--except for DVC--is what motivates people to buy points at SSR. If people were buying SSR direct because of the $95 price, then an increase certainly may cause a reduction in the volume of sales.

However, if people are buying SSR because they actually like the resort (Treehoues in particular) or because they already own at SSR and prefer to add on to their current Home, then a price increase may not have any negative effect on sales. In fact, it wasn't all that long ago that SSR, AKV and BLT were all going for about the same price. The $95 rate for SSR was something that came into being less than 6 months ago. Perhaps DVC didn't get the sale bump they thought they would see by lowering the price, so they decided to take it back up again and earn more revenue for each point sold.

If we just look at SSR and BLT--two resorts which are now identically priced--it goes without saying that BLT is the better deal. More years...lower dues...better location. Even if DVC does something like offering extra benefits to direct buyers, BLT is still the more attractive buy with prices being equal.

I still think it was done to cast BLT in the most positive light. DVC is certainly aware that SSR would sell better if priced lower than BLT. They know what resale prices are running. Apparently willing to live with those slow SSR sales.

There's also something to be said for simplifying the prices (same cost for all), although that will be short-lived if BLT goes up in price again on 12/1.

 

[Sammie]

No one is bashing SSR. You can't ignore the substantial price increase from $95 to $120/pt. That's all thats being talked about on this thread....

Actually you might want to read all the comments.

As some stated they were surprised that DVC thinks SSR can be sold at the same price as BLT and AKV.

My point was and I sure Liferbabe will agree, is that it does not surprise us at all in that we think SSR is as desireable a property as the others.

I have to agree with TJ that it is to push sales on BLT. No one is going to convince me that making major changes to such a new property and the noted wear and tear on the units and the furnishings is not having a negative affect on sales.

 

[BWV Dreamin]

No one is going to convince me that making major changes to such a new property and the noted wear and tear on the units and the furnishings is not having a negative affect on sales.

It has already been stated that the furnishings disrepair is being replaced by the vendor and that these expenses will NOT be passed on to DVC members. So that statement has no relevance in this discussion.