The "NEW" Saratoga incentive!

[tjkraz]

it is? then I don't consider that a free vacation... i thought it maybe something like 1 free week + park tickets or something. I mean disney still gets their money from us buying things in the park

Sorry. Tourism is up. DVC sales appear to be good. And, as DVC is structured, you'll already save thousands on your accommodations in coming years--no need to give these things away.

The $8 off plus no maintenance for the first year is one of the better promotional discounts they've offered in recent years.

 

[JimMIA]

I happend to have Dec. UY and when I called my guide last week to inquire about the SSR incentive for current members, he told me about the $5/credit (instead of $8) and taking '04 allocation so I did.

However, when I got the contract today I notice the selling prices was set at $95 instead of $90 that I was expecting and down payment was more that what he quoted me
I'm going to have to call him in the morning and I did not get the backpack

Has anyone gotten a backpack for an add-on less than 150 points? I purchased resale on my original contract so I was hoping to at least get a DVC backpack with this add-on

I'd also be interested to know whether your contract called for you to pay maintenance on the 2004 points.

I know we don't pay on 2005, but I was under the impression that we didn't pay for last year's maintenance either. If you buy a new contract from Disney, they pro-rate the maintenance from the time of closing to the end of the calendar year, so it defies logic to think we would have to pay maintenance for the calendar year before we purchased!

But that's exactly what my guide told me -- you pay '04 maintenance, but not '05. I'm hoping she's mistaken, but I haven't received the add-on contract yet to know for sure.

 

[magicmommy]

When we added on my guide also told me that the maintenance fees waived were only for 05 points not 04.

 

[JimMIA]

So this 'no maintenance fees' i'm guessing this is only for the first initial purchase year???

Be very careful that you understand each of these little tidbits of information you pick up. Most people in the position you are in - new and picking up info one molecule at a time - find it very hard to assemble all that into one understandable package. That's why reading these boards thoroughly and asking a lot of questions can be so helpful.

Maintenance fees are for calendar year. They have nothing to do with "use year," which is the period for which points are effective. So, if you are buying DVC now and closing in July (just for an example), and the incentive is "no maintenance fees for 2005," what you are really getting is six months of free maintenance - July through the end of the year.* In December, you are going to receive an invoice for your full 2006 maintenance fees.

So, the current incentive for you in that scenario would be either $8 off the normal $95 price (which goes up to $98 on June 5, BTW) or 100 free one-time points - PLUS no maintenance for the balance of 2005 with either of those options.

*Note that this varies in resale, where everything is negotiable. In resale, often you will pay maintenance for all of the current year points you get, but usually won't pay for any banked points. That varies with each contract.

 

[tamu91]

When we added on my guide also told me that the maintenance fees waived were only for 05 points not 04.

I was under the impression that '04 maintenace would be waived and '05 would be pro-rated based on my closing date. I guess I'll have the read the contract again

 

[cs2sgrl]

I heard that too. I heard that you could get a free stay at SSR if you purchased a DVC. Is that true??

 

[magicmommy]

Has anyone gotten a backpack for an add-on less than 150 points? I purchased resale on my original contract so I was hoping to at least get a DVC backpack with this add-on :earboy2


I have done 3 add-ons and one was 150 and I believe I got another backpack.

 

[erikthewise]

My questions are:
(1) What do these incentives say about how SSR sales are going? We are told they are going very well, but then they offer these incentives like GM trying to sell cars.

(2) Why do they keep jacking up the official price, then offering incentives to bring the effective price back down again? Why not just leave the price alone?

 

[tjkraz]

My questions are:
(1) What do these incentives say about how SSR sales are going? We are told they are going very well, but then they offer these incentives like GM trying to sell cars.

If you're referring to the 100 bonus points for current members who add-on, my guess would be that it was designed to specifically address members who might be on a waiting list for points at a sold-out resort. DVC certainly has a much higher profit margin on SSR points than on reselling an ROFR-ed contract at BCV, BWV et. al. If 100 bonus points are all it takes to get people to take the leap on SSR, then I think it was money well spent.

(2) Why do they keep jacking up the official price, then offering incentives to bring the effective price back down again? Why not just leave the price alone?

Why does Disney keep raising Rack Rates on cash rooms while offering free meal plans and '7 nights for the price of 4' room deals? My guess would be it has to do with the perception that one is getting a "deal" via the discounts offered. Which sounds better:

a) "The price is a firm $87 per point."
b) "Our NORMAL price is $95 per point, but I've got a deal just for YOU..."

Besides, if current incentives are valued at roughly $10 per point, after the pending price increase I doubt they will be upping the incentives to $13 per point. I'm sure there will be a very real net price increase in there somewhere.

 

[JimMIA]

My questions are:
(1) What do these incentives say about how SSR sales are going? We are told they are going very well, but then they offer these incentives like GM trying to sell cars.

I don't know how SSR sales are going, but would you pay sticker price for a car? Naw! We all want a deal, and that's what this is about.

(2) Why do they keep jacking up the official price, then offering incentives to bring the effective price back down again? Why not just leave the price alone?

They're not bringing the effective price back down. Before: $95-8 = $87. After: $98-8 = $90.

 

[erikthewise]

Thanks for the quick responses you two!

I did not mean to imply that the effective price was unchanged, only that the "list" price was being kept artificially high. Perhaps the obvious answer (which you gave) is the correct one.

DVC certainly has a much higher profit margin on SSR points than on reselling an ROFR-ed contract at BCV, BWV et. al.

Well, perhaps, but the construction costs are lower when you sell the unit the second time.

I'd sooner pay sticker price for a car I really want, than a discounted price for one I really don't. That reminds me -- I need to put myself on the waiting list for an addon to my home resort.

 

[JimMIA]

That reminds me -- I need to put myself on the waiting list for an addon to my home resort.

Now THAT's spoken like a true DISer!

 

[ColoradoBelle1]

I forgot I had started this post! I think it's because I was all caught up in
Hanname and Greenban!

Someone asked why I'd buy points and then rent them out.....Since I already have my first contract at BWV, I don't 'need' the extra points right now. So renting the extras out for this year (and 2004 if I could get them and the 100 bonus) would bring the effective cost down to 'a really good deal'.

I LOVE good deals!!!!!!

I bought more points than I needed originally, because it was a good contract. So I will always have more points than I actually NEED for a vaca.
It's great to have the luxury of renting out points that I don't need now, but having them for the future...when I might want to SPLURGE!

I still don't know if I'll buy this new incentive...I just bought 'points' from a resort that I love in Puerta Vallarta and I'm thinking that an ebay RCI points contract (evidentally, if you can wait until 45 days before a trip, you can stay for a week (if available) for the amount of points usually needed for one night. For all of these 'deals', I factor in the cost to acquire (on ebay for other than Disney resorts it is hardly anything) plus the maintenance costs, which I take seriously. BUT I never would have done any of this if I hadn't found this board and all the information on it...and all the well thought out and subjective answers.

Finally, as to the incentives: Disney marketing hardly ever makes major mistakes. Letting the already DVC members 'buy in' at a lower cost than prospective members gives them the opportunity to reach 90,000 people who already KNOW the value of DVC. And if I NEEDED more points, rather than pay Disney $89 for my home resort, I'd be smarter to pay $69 (after renting out one year of points and bonus) for SS. It's a win/win for Disney and US, if we need more points!

Now where the hanname is Greenban?