Would you pay a premium when buying direct for ability to sell as unrestricted?

[DanCali]

The simple fact that one could buy Direct and rent it for 8 years to completely payoff a direct contract is also pretty cool.

that’s only if you rent at $20/point and go delinquent on annual dues for 8 years.

 

[Robbie Cottam]

that’s only if you rent at $20/point and go delinquent on annual dues for 8 years.

10 years? fell better now
and I currently rent RR at 20 point, if I bought GF it would be 20 or 21

 

[DanCali]

10 years? fell better now
and I currently rent RR at 20 point, if I bought GF it would be 20 or 21

Well, if you are renting at $12 over dues it will take around 13-14 years to make back your upfront cost (ignoring taxes).

 

[Stargazer65]

Sometimes people want a lesser commitment. Direct requires a big chunk of change up front for a big contract, for a long time, to get the good deal. Resale is available in all sorts of prices, sizes, and time commitments.

 

[Leight19]

I will never buy a restricted resort and expect I won’t live past the current resorts which have no restrictions. I’m so anti resale restrictions I would sign on in heart beat to legal challenge to kick riviera and any future restricted resort out of association on the argument people brought up previously it should never be allowed to join since the terms were dissimilar.

 

[Sammie]

Restrictions do not bother me. We bought to use ours and at this point, we have 19 years left and could give it away and that would be fine. We have gotten our money out of it many times over. If we get tired of going I will gift family and friends with free trips.

 

[Bearval]

I don’t see it because the cost would need to be high so that it would cost someone more to buy resale and upgrade than just direct to start.

But, you never know what they might do since I doubt anyone predicted restrictions would be a DVC thing.

I don’t ever see DVD doing that since it would just go against the reason they restricted resale in the first place for the newer resorts. What I have trouble understanding is what took them so long to do it.

 

[Sandisw]

I don’t ever see DVD doing that since it would just go against the reason they restricted resale in the first place for the newer resorts. What I have trouble understanding is what took them so long to do it.

I personally don’t see it either and never thought about it but you are right. They did start making differences between the two in 2012.

 

[DanCali]

I don’t ever see DVD doing that since it would just go against the reason they restricted resale in the first place for the newer resorts. What I have trouble understanding is what took them so long to do it.

Other companies (Marriott, Westin/Sheraton) do it all the time. If DVC starts operating like those companies and enacting the same type of resale restrictions, they may as well copy the playbook all the way and allow "requalifying", "retro'ing", "point washing" or whatever else you want to call it...

It wouldn't necessarily be done in the form of a payment to bring in resale points because, as pointed out, buying direct would likely be cheaper. But it can be done in the form of "Buy a minimum of XXX direct points and you can bring in resale contracts of up to ZZZ points, and turn those resale points to completely unrestricted". This is a pretty costless thing for them to do - just change a code on a resale contract in the computer.

Doing this would only affect a small portion of buyers because most buyers are not aware of the resale option anyway. But with more informed buyers, they can (i) induce a buyer who might never otherwise buy direct to buy direct (ii) increase average contract size sold (eg "Buy a minimum of 500 points and bring in resale contracts of up to 500 points") (iii) get these buyers to buy multiple times, because the next time they buy a resale contract, they will be tempted to fully bring it into the system.

 

[Sandisw]

Other companies (Marriott, Westin/Sheraton) do it all the time. If DVC starts operating like those companies and enacting the same type of resale restrictions, they may as well copy the playbook all the way and allow "requalifying", "retro'ing", "point washing" or whatever else you want to call it...

It wouldn't necessarily be done in the form of a payment to bring in resale points because, as pointed out, buying direct would likely be cheaper. But it can be done in the form of "Buy a minimum of XXX direct points and you can bring in resale contracts of up to ZZZ points, and turn those resale points to completely unrestricted". This is a pretty costless thing for them to do - just change a code on a resale contract in the computer.

Doing this would only affect a small portion of buyers because most buyers are not aware of the resale option anyway. But with more informed buyers, they can (i) induce a buyer who might never otherwise buy direct to buy direct (ii) increase average contract size sold (eg "Buy a minimum of 500 points and bring in resale contracts of up to 500 points") (iii) get these buyers to buy multiple times, because the next time they buy a resale contract, they will be tempted to fully bring it into the system.

The flip side? They do what they have just done…come up with incentives strong enough to get people to just add direct.

VGF as low as $161 direct? It’s base price 10 years ago was $145 when sales started.

Pricing aggressively can raise the volume of sales and why I don’t think we will ever see DVC “wash” points.

 

[DanCali]

The flip side? They do what they have just done…come up with incentives strong enough to get people to just add direct.

VGF as low as $161 direct? It’s base price 10 years ago was $145 when sales started.

Pricing aggressively can raise the volume of sales and why I don’t think we will ever see DVC “wash” points.

True, they got me to buy at that price - but VGF doesn't have the resale restrictions...

You don't really know what would have happened to all those sales if VGF was "sold out". Some may have indeed bought Riviera or VDH for the incentives. Some, like me, (likely) just wouldn't buy direct at a restricted resort.

 

[Sandisw]

True, they got me to buy at that price - but VGF doesn't have the resale restrictions...

You don't really know what would have happened to all those sales if VGF was "sold out". Some may have indeed bought Riviera or VDH for the incentives. Some, like me, (likely) just wouldn't buy direct at a restricted resort.

My thought is that, just like VDH, Poly tower won’t have any problem selling with restrictions. And, remember, other than the first three months, VGF didn’t start outselling RIV until DVD made it a lower price. When RIV was lower, restrictions aside, it did better.

It certainly does seem that the driving force to direct, and DVD may be learning this, is setting a price that makes it difficult to resist.

 

[Cfabar1]

It certainly does seem that the driving force to direct, and DVD may be learning this, is setting a price that makes it difficult to resist.

this is exactly right. If direct is priced right, people won't mess around with resale.