The VGF 2 pricing thread

[Paul Stupin]

Most people can’t buy any big ticket items by their income level. It’s done through financing, which I’m sure many DVC buyers used to buy Riviera.

Sure, but 31k is still 31k no matter how you pay for it, and the payments are still a hit to a monthly budget.

 

[HIRyeDVC]

Agree and when the economy crashes which it will at some point any contracts will be substantially cheaper resale across all resorts.

I don’t think the economy will crash

 

[HIRyeDVC]

Sure, but 31k is still 31k no matter how you pay for it, and the payments are still a hit to a monthly budget.

I’m not saying it’s smart. Just saying that’s what people do.

 

[nuhusky123]

I don’t think the economy will crash

Unless there is a black swan event I agree, we are in a correction

but as per Paul, $31k is $31k whether you buy outright or finance. The point being $31k to most households is a ridiculous amount of money. Again to the avg us household $31k is 50% of their annual income

 

[HIRyeDVC]

Unless there is a black swan event I agree, we are in a correction

but as per Paul, $31k is $31k whether you buy outright or finance. The point being $31k to most households is a ridiculous amount of money. Again to the avg us household $31k is 50% of their annual income

Yes. A correction is different from a crash. And I think Disney is no longer targeting “average” Americans as evidenced by all the price increases. There are a lot of young households out there with lots of money or enough to swing it through financing.

 

[CaptainAmerica]

Unless there is a black swan event I agree, we are in a correction

but as per Paul, $31k is $31k whether you buy outright or finance. The point being $31k to most households is a ridiculous amount of money. Again to the avg us household $31k is 50% of their annual income

"The average household" doesn't stay in $500+ hotel rooms for a week every single year.

And I think Disney is no longer targeting “average” Americans as evidenced by all the price increases.

They never were.

 

[Paul Stupin]

I don’t think the economy will crash

I don’t think it will either, but current inflation and economic issues in my opinion will not help sales of VGF2. All the more reason to offer generous incentives on top of the $207 starting price.
Let’s also not forget that direct sales are still languishing. Sure VGF is a flagship property, but with the current diminished demand, I don’t think it will sell if it’s not priced well.

 

[CaptainAmerica]

I don’t think it will either, but current inflation and economic issues in my opinion will not help sales of VGF2. All the more reason to offer generous incentives on top of the $207 starting price.

Inflation helps the sorts of people who buy DVC. Many professional-class employees got a lot more than their normal 3% raises last year, and likely will again next year. Groceries are more expensive, but these households don't spend a large percentage of their salaries on groceries to begin with. Their mortgages haven't gotten any more expensive, and in real-dollar terms have gotten cheaper.

Let’s also not forget that direct sales are still languishing. Sure VGF is a flagship property, but with the current diminished demand, I don’t think it will sell if it’s not priced well.

The great mystery, which will soon be answered, is whether there's diminished demand for DVC generally, or Riviera in particular.

 

[nuhusky123]

To shift topics slightly. What day of the week would dvc want to start sales/annouce?

 

[smmora]

I don’t think the economy will crash

My stock accounts are down 25k from Jan 1st

 

[Paul Stupin]

"The average household" doesn't stay in $500+ hotel rooms for a week every single year.


They never were.

As I’ve mentioned earlier, higher income buyers are also savvy buyers. They’re not going to write a blank check for VGF2 either. They’re also more aware of stock market fluctuations which can diminish net worth.

 

[Sandisw]

I'm not an attorney, but the lawyers around here seem to have ruled it out from a contractual perspective, but I would just add that Disney is remarkably poor at tech infrastructure. Even if they 100% legally were permitted to do this, I don't think they could figure out how to manage it logistically.

I don’t think they can do it, but I don’t think it would be hard at all to manage as DVD itself wouldn’t be the one doing it.

People would have to sell VGF as restricted and unrestricted. As long as they have the VGF2 points to sell, then it’s easy as they don’t sell the ones deeded to the new building anymore and keep those for their own use.

Again, it makes little sense to try because it would create a challenge from owners…if that was their plan, they would have made the new association which would have kept it easy and simple. The fact they didn’t leads one to believe it’s not going to happen.

 

[Paul Stupin]

Inflation helps the sorts of people who buy DVC. Many professional-class employees got a lot more than their normal 3% raises last year, and likely will again next year. Groceries are more expensive, but these households don't spend a large percentage of their salaries on groceries to begin with. Their mortgages haven't gotten any more expensive, and in real-dollar terms have gotten cheaper.


The great mystery, which will soon be answered, is whether there's diminished demand for DVC generally, or Riviera in particular.

On a macro level, a high leve of inflation will not be a positive for VGF sales.

 

[HIRyeDVC]

My stock accounts are down 25k from Jan 1st

Yes, the DOW is down about 2k since December. But overall, it’s up about 5k since this time last year. A correction is not the same as a “crash”

 

[hhisc16]

My stock accounts are down 25k from Jan 1st

DIS stock has plummeted...
this may have an impact on DVC sales.

 

[nuhusky123]

If Russia invades the Ukraine we may have our black swan event. Fuel prices for both cars and homes will go up exponentially. The eu market gets most of their fuel from Russia and would be especially hard hit which will have knock on impacts in the USA.

markets will be flooded with sales orders and I’d say the economy will be in for a bear market especially as Russian sanction compound the fuel concerns

 

[Sandisw]

Let’s not get into a discussion about inflation and other topics on their own but stick to the pricing of VGF!

 

[HIRyeDVC]

"The average household" doesn't stay in $500+ hotel rooms for a week every single year.


They never were.

Thats what I mean! I don’t know why people think Disney has some moral obligation to price DVC to the “average” American household. It’s a luxury product, situated at Disney’s most DELUXE properties. Disney will price it approximately for the right demand. If they didn’t, DVC would be overrun.

 

[CaptainAmerica]

If Russia invades the Ukraine we may have our black swan event. Fuel prices for both cars and homes will go up exponentially. The eu market gets most of their fuel from Russia and would be especially hard hit which will have knock on impacts in the USA.

markets will be flooded with sales orders and I’d say the economy will be in for a bear market especially as Russian sanction compound the fuel concerns

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╱╱┏┳┓╭╮┏┳┓ ╲╲
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(•_•)
<) )╯ buy
/ \
(•_•)
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<) )╯ dip!
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That's a meme-on-a-meme for the kids in the back. Meme-ception if you will.

 

[CaptainAmerica]

Let’s not get into a discussion about inflation and other topics on their own but stick to the pricing of VGF!