Why does everyone value their points so little?

[toesmom]

I understand that I should get the great deal when I laid out the cash to buy the points, but why does everyone virtually give away their points when they rent them or transfer them?

I understand if you have 1 month left and they will expire and can't be banked, but why not offer them for rent for a reasonable amount? $10 is very cheap per point.

If you are really stuck, then that makes sense.

But if you buy the points at such high cost, why are you people all passing your great deal onto strangers?

I mean realistically, rentals can be priced at $14-15 per point... and still a bargain compared to Disney cost for the room.

I just don't understand why people don't place more value on their points. If you take a risk in buying the points, why are you all passing the great savings onto strangers, including the whole dining plan option which was really only meant to keep DVC owners happy?

If everyone really valued their points (except for those in time-sensitive circumstances), they should be renting for closer to $15 per point.

And if someone is upset by my post, I'll assume it is a potential renter. Because any DVC owners should be aware of the high buy-in cost to own these points. I just don't get why people are giving such great discounts to strangers? Charge people what the points are really worth and potential renters will pay it if they want to.

$10 is just crazy IMO

 

[a Really Bad Egg]

Maybe market forces dictate the value...supply and demand.

 

[toesmom]

Maybe market forces dictate the value...supply and demand.

I think the demand is pretty high based on the rent/trade board postings.

The price is dictated by the DVC owners renting out their points. And still a much better price than through Disney. Why not meet somewhere in the middle. If Disney's rental rate is equivalent to $25 per point, then meet at $14 or 15.

Demand is obviously high because people love a bargain. Should be priced properly.

If you rent out 120 points for example, an additional $3 per point cost is $360. It really makes a difference and puts a good value on the points.

Again, only when owners are not under time-sensitive circumstances does this makes sense. You can always find someone to take the points for $10.

 

[salmoneous]

I think the demand is pretty high based on the rent/trade board postings.

Demdand is high at $10/point. Not so high at $15.

Keep in mind that DVC owners probably value their time at least as much as they value their points. A smooth and easy rental is worth a lot to people.

 

[bwvBound]

I do rent mine fairly low - but only to friends and family. Keep in mind that the renter would receive daily housekeeping if they booked their stay direct through Disney at the higher rates.

 

[toesmom]

Demdand is high at $10/point. Not so high at $15.

Keep in mind that DVC owners probably value their time at least as much as they value their points. A smooth and easy rental is worth a lot to people.

Demand would still be high even at $15 if that's what DVC owners were asking. Comparing to Disney's cost, it would still be a huge savings. Of course demand is very high when points are offered at only $10. Actually, not that many DVC owners are offering at $10, it appears a little bit higher - finally some sense.

Possibly those renting out their points at $10 are the ones who are stuck and need to get them rented quickly?

 

[a Really Bad Egg]

The supply (those renting points) is probably of sufficient volume that the demand (those renting points) doesn't have to bid up the price.

Just because I say I want $15 per point does not mean I will get it if there are others (suppliers) who want the sale. They will simply advertise their points for less, bidding down the price.

Now, if I was the only one (supplier) renting points, and there were 10 people wanting them (demand), perhaps my price is more attractive?

 

[Chuck S]

If you wish to rent your points at $15 per point, you are free to do so, if others are happy with renting their points for $5 or $10 they are also free to do so.

I don't rent my points, but if I did, the price I'd rent them for is entirely my business and no one else's'. Those of us that are long term owners could still make out fine renting at a price lower than those who purchased more recently. And no matter what, there would likely always be someone willing to rent for less...it is simply the way it works.

The price has to be agreeable to both parties in the transaction, and in a transaction where one party (the owners) always has full control of the reservation, it puts the renters somewhat at risk. Of course, the owner is also at risk for damages or unpaid balances. Renting is simply a matter of trust for both parties. Also, given that daily housekeeping, which they would receive with a cash reservation, is $30 per day extra for a studio, that will turn some potential renters off from the whole idea. Having to go through the owner, without the ability to talk to Member Services is also a deal breaker for many.

 

[jodifla]

Demand would still be high even at $15 if that's what DVC owners were asking. Comparing to Disney's cost, it would still be a huge savings. Of course demand is very high when points are offered at only $10. Actually, not that many DVC owners are offering at $10, it appears a little bit higher - finally some sense.

Possibly those renting out their points at $10 are the ones who are stuck and need to get them rented quickly?

This comes up often. Maybe $10 seems low, but the thing is, renters need to feel they are getting a deal to take the incredible risk that you take when renting points.

For example, if you rent from Disney, you can cancel up to what...a few days before you go? Once you rent from a DVCer, it's likely a done deal with little room for cancellation. You can't be totally sure you even HAVE a reservation if you rent privately. The private DVCer holds most of the cards.

That's an incredible disincentive for a lot of people.

 

[Mtnman44]

Bingo! .

This comes up often. Maybe $10 seems low, but the thing is, renters need to feel they are getting a deal to take the incredible risk that you take when renting points.

For example, if you rent from Disney, you can cancel up to what...a few days before you go? Once you rent from a DVCer, it's likely a done deal with little room for cancellation. You can't be totally sure you even HAVE a reservation if you rent privately. The private DVCer holds most of the cards.

That's an incredible disincentive for a lot of people.

 

[Nigel8600]

Hmm, maybe there should be some way of rating DVC owners like the e-bay system does when someone rents points out here.

We did just recently end up renting 55 points from our stay at SSV for 10.00 per point coming up in October for our very first time ever in Florida (been to DW at least 5 times because being from Western Canada it's easier getting there) But what was amazing is that all the points the member had that we rented from were all rented out in less than 24 hrs from their original post. There were a TON of people still asking for points after they were all gone.

It really made us look at this DVC like a potential investment. So much in fact that we took the plunge and have an offer in ROFR right now for 160 points at AKV so we can rent out at no less than $15 per point with first points not expiring until April 09 giving people a chance to rent 11 months out with a savannah view making our points worth $15 maybe?

 

[toesmom]

Hmm, maybe there should be some way of rating DVC owners like the e-bay system does when someone rents points out here.

We did just recently end up renting 55 points from our stay at SSV for 10.00 per point coming up in October for our very first time ever in Florida (been to DW at least 5 times because being from Western Canada it's easier getting there) But what was amazing is that all the points the member had that we rented from were all rented out in less than 24 hrs from their original post. There were a TON of people still asking for points after they were all gone.

It really made us look at this DVC like a potential investment. So much in fact that we took the plunge and have an offer in ROFR right now for 160 points at AKV so we can rent out at no less than $15 per point with first points not expiring until April 09 giving people a chance to rent 11 months out with a savannah view making our points worth $15 maybe?

Congratulations, and that is smart thinking.

 

[Chuck S]

Just remember that a lot of non-DVC owners looking to rent, do not make their travel plans that far out. Most are used to booking cash reservations a few months out, so your 11 month booking window at AKV may have little "added value" to renters. Most will be booking in a time frame where "points are points." And Savannah Views at a large resort like AKV Kidani will likely be available in the 7 month window. The exception may be concierge rooms at Jambo, but again, people that want cash concierge are probably more likely to book directly through Disney.

 

[dcamdad]

We personally have never rented out any of our points nor do we ever intend to, but as Chuck stated earlier some of us have owned since the early to mid 90's and have less than half the cost as today so were not looking to recoup as someone who just bought DVC.

 

[3DisneyKids]

This topic comes up quite a bit.

And remember that $10 per point is the "going" DIS rate...and not that many "outsiders" know about the DIS and renting points.

Folks who are commercial renters (do a ton of it) tend not to use the DIS. (1) Many DIS-DVCers frown on commercial renting (me included); and (2) they get that $14-$15 per point by renting in other venues.

Remember, also, that simply not that many people even know what DVC is or what renting points is. Yes, it is an awesome deal...but there are not that many folks who even klnow and/or understand what this is.

 

[DaveH]

We bought DVC in 2001 at VWL. If I remember right with today's dues and cost per point over length of contract $10 is around even for right now. If you are renting instead of trading out say for DVC, $10 per point might work well for them. It depends on what your reason is for renting out. I have a DS living in FL and I would give him use before renting out right now. That is my choice.

 

[Nigel8600]

Hi, just a quick note to DVC'ers, keep in mind that there are other boards out there with a whole different set of members and I remember seeing one board where some members in general won't rent for any less than 15 per point and they get a lot of renters at that price because they are united in their rental fee.

 

[Chuck S]

A reminder that attempting to get others to agree to a set rental price is not allowed on the DVC boards. Prices here are set by the two individual parties involved, the renter and owner, not a group of owners.

 

[keishashadow]

Supply/demand & personal decision dictate i suppose

Did post on a thread on the Budget board as to speculation that the decline in economy may drive down the rental prices .

imo, enjoying the villas @ $13 a point is a steal Just glad i haven't found myself in the position wherein i have to rent or haggle with a renter as to price.

 

[jekjones1558]

I think some DIS DVCers are starting to agree that rental prices have been too low. I notice more (though certainly not all) posters asking for $11 or $12/point. Not so long ago most were asking for only $10.