The VGF 2 pricing thread

[KTownRaider]

When I bought into VGF right before the VGF2 announcement (bad timing), I had anticipated getting 1-2BR Standard Views. Now, I'll be adding on next year to able to comfortably book 2BR Lake Views assuming Standard 1-2BRs will be harder to book. I don't always plan to stay in a larger unit, but I do want relatively easy access to them during the 7-11 month period. Otherwise, I would have bought at Poly...

 

[Paul Stupin]

Most, but not all.

You’re definitely adding at least some buyers who will want one bedroom accommodations, and you’re definitely not adding any new one bedroom units.

It’s hard to see it not having at least some effect.



But, I suppose you could argue that some of the current one bedroom bookings are made by people who would have preferred a studio, but waited too long to make their reservation. If that’s true then maybe, just maybe, it ends up being net neutral.

The vast majority of demand across DVC lies in studios, and particularly value studios, a fact of which Disney is quite aware, considering that VGF2 is exclusively studios, and DLT is primarily studios. Sure, you’ll have outliers who want to try one and two bedrooms, but as you said it works both ways, plus there will be VGF owners who want to try the new building.
The point cost for one and two bedrooms is monumentally high, and it’s hard for me to believe that there’s going to be a sudden, massive surge in demand for some of the priciest accommodations at WDW, when the entire new building is designed for value oriented buyers.

 

[Jelly563]

Value buyers for cheap studio rooms = Yes
But.... get out your checkbooks, because they are going to make you pay for it. $275pp

 

[Paul Stupin]

Value buyers for cheap studio rooms = Yes
But.... get out your checkbooks, because they are going to make you pay for it. $275pp

I guess they could price VGF2 in the stratosphere, but all the buyers would go to Riviera and no one would buy VGF2. That’s why most new DVC resorts are similarly priced, so a situation like that doesn’t happen. And the purpose of a new VGF building is not to help sales at Riviera!
I think they stopped selling VGF for $255 direct because it would have been perceived as unethical to keep selling at the sold out price when VGF2 would open lower, at Riviera level. And all those buyers at $255 would feel totally ripped off! They’d rather sell their new direct VGF2 points to buyers anyway, because their profit margin for the $255 price point is lower since they have to buy the product on resale. I still say VGF2 will open at $225-$240, with incentives taking the price lower.
Also, this is a cheap, fast remodel, not a new build, with a forty not fifty year expiration date. It cannot support an astronomical price, and is not intended to.

 

[Paul Stupin]

And one other thing! Demand for VGF at $255 was pretty low. Why would anyone think they would price it higher? It’s not a new resort…it’s the exact same product!

 

[RoseGold]

Value buyers for cheap studio rooms = Yes
But.... get out your checkbooks, because they are going to make you pay for it. $275pp

Finally someone on board with me! We will be right.

 

[Paul Stupin]

Finally someone on board with me! We will be right.

I love the debate...only time will tell! But I sincerely doubt that an all studio remodel of an existing hotel building, done in 6 months, will be priced more than a brand new beautifully built from the ground up resort like Riviera, which has roughly 25% more time on the contract.

 

[RoseGold]

But I sincerely doubt that an all studio remodel of an existing hotel building, done in 6 months, will be priced more than a brand new beautifully built from the ground up resort like Riviera, which has roughly 25% more time on the contract.

Well, there's still a few million points left on that beautifully built resort if you are buying.

Also, a few million at another beautiful one in another lovely location...

 

[Paul Stupin]

Well, there's still a few million points left on that beautifully built resort if you are buying.

Also, a few million at another beautiful one in another lovely location...

I thought about it. Am just not as wild about the location and dining as everyone else. But I’ve got enough direct points to stay there if rooms are available at 7 months. Am more of a VGF fan.

 

[Paul Stupin]

Well, there's still a few million points left on that beautifully built resort if you are buying.

Also, a few million at another beautiful one in another lovely location...

And I actually do own at Aulani. We live in LA so it’s not the epic journey that it is for some folks on the east coast.

 

[Marionnette]

I love the debate...only time will tell! But I sincerely doubt that an all studio remodel of an existing hotel building, done in 6 months, will be priced more than a brand new beautifully built from the ground up resort like Riviera, which has roughly 25% more time on the contract.

But they're not just selling the converted studios. They're selling home resort access to their flagship resort, including the original studios, 1BRs, 2BRs and GVs.

 

[Paul Stupin]

But they're not just selling the converted studios. They're selling home resort access to their flagship resort, including the original studios, 1BRs, 2BRs and GVs.

Of course! But clearly the demand is there for studios. And if they try to price them wildly higher than their other properties currently for sale, no one will buy. There wasn’t a huge demand for direct points at $255, so I’m not exactly sure why so many folks think there will be greater demand at an even higher price.

 

[BWV Dreamin]

When I bought into VGF right before the VGF2 announcement (bad timing), I had anticipated getting 1-2BR Standard Views. Now, I'll be adding on next year to able to comfortably book 2BR Lake Views assuming Standard 1-2BRs will be harder to book. I don't always plan to stay in a larger unit, but I do want relatively easy access to them during the 7-11 month period. Otherwise, I would have bought at Poly...

I too purchased more direct VGF points a month before the announcement. I look at it as great timing, as there is a very good chance the ppp will be MORE than what we paid direct last spring.

 

[BWV Dreamin]

Of course! But clearly the demand is there for studios. And if they try to price them wildly higher than their other properties currently for sale, no one will buy. There wasn’t a huge demand for direct points at $255, so I’m not exactly sure why so many folks think there will be greater demand at an even higher price.

Inflation, inflation, inflation.

 

[BWV Dreamin]

I guess they could price VGF2 in the stratosphere, but all the buyers would go to Riviera and no one would buy VGF2. That’s why most new DVC resorts are similarly priced, so a situation like that doesn’t happen. And the purpose of a new VGF building is not to help sales at Riviera!
I think they stopped selling VGF for $255 direct because it would have been perceived as unethical to keep selling at the sold out price when VGF2 would open lower, at Riviera level. And all those buyers at $255 would feel totally ripped off! They’d rather sell their new direct VGF2 points to buyers anyway, because their profit margin for the $255 price point is lower since they have to buy the product on resale. I still say VGF2 will open at $225-$240, with incentives taking the price lower.
Also, this is a cheap, fast remodel, not a new build, with a forty not fifty year expiration date. It cannot support an astronomical price, and is not intended to.

We have no idea what the opening price will be. Remember what ASSUME means….lol….

 

[Paul Stupin]

I too purchased more direct VGF points a month before the announcement. I look at it as great timing, as there is a very good chance the ppp will be MORE than what we paid direct last spring.

Me too, but I look at it as bad timing. But, yes, no one really knows! The reality is probably somewhere in the middle, not astronomically high, but not bargain basement either. I too am buying more for easy access to one bedrooms with lake view from 11-7 month.

 

[Sandisw]

We have no idea what the opening price will be. Remember what ASSUME means….lol….

That’s true, but it applies to both theories. Historically, new resorts come out lower than most think. This is a unique case, where you have one new resort in active sales and starting sales at a sold out resort by adding rooms,

As many as said, it’s fine pricing something at $255 when you are not trying to sell millions of points, at a minimum of 150 now.

I have said this before…raising the minimum will allow them to sell for less. 150 points at $220 makes them more than doing the old 125@ $255.

For all we know, by the time the decide to sell, they will raise the minimum again so the price per point can stay closer to RIV. Lots of marketing strategies to choose from.

Plus, the bulk of VGF will now be studios and rumor has it that there will be no kitchen sink…just mini fridge and microwave. If that proves true, it could impact how interested people will be.

 

[Paul Stupin]

That’s true, but it applies to both theories. Historically, new resorts come out lower than most think. This is a unique case, where you have one new resort in active sales and starting sales at a sold out resort by adding rooms,

As many as said, it’s fine pricing something at $255 when you are not trying to sell millions of points, at a minimum of 150 now.

I have said this before…raising the minimum will allow them to sell for less. 150 points at $220 makes them more than doing the old 125@ $255.

For all we know, by the time the decide to sell, they will raise the minimum again so the price per point can stay closer to RIV. Lots of marketing strategies to choose from.

Plus, the bulk of VGF will now be studios and rumor has it that there will be no kitchen sink…just mini fridge and microwave. If that proves true, it could impact how interested people will be.

The lack of kitchen sink could account for the speed with which they plan on doing the remodel. And thanx for your point of view. I think all your observations are valid, and interesting.

 

[BWV Dreamin]

That’s true, but it applies to both theories. Historically, new resorts come out lower than most think. This is a unique case, where you have one new resort in active sales and starting sales at a sold out resort by adding rooms,

As many as said, it’s fine pricing something at $255 when you are not trying to sell millions of points, at a minimum of 150 now.

I have said this before…raising the minimum will allow them to sell for less. 150 points at $220 makes them more than doing the old 125@ $255.

For all we know, by the time the decide to sell, they will raise the minimum again so the price per point can stay closer to RIV. Lots of marketing strategies to choose from.

Plus, the bulk of VGF will now be studios and rumor has it that there will be no kitchen sink…just mini fridge and microwave. If that proves true, it could impact how interested people will be.

Noooooo……. this really goes against the DVC model. How can you possibly have a home away from home with no kitchen sink?

 

[Sandisw]

Noooooo……. this really goes against the DVC model. How can you possibly have a home away from home with no kitchen sink?

It is just a rumor. But could be why it was called a resort studio??

It would definitely be a different type of room. If it proves true, it could make booking studios at VGF1 building harder.