Are high pressure sales techniques even needed in today's timeshare environment ?

[boyblue]

You guys that bought from the developer shame the rest of us. You are right, it's still worth it - really. The flood of unused units, does not change the fact that timeshare ownership changes us all for the better. It's a wonderful life, either way. Before I bought a TS I never took a vacation and since then I have a lifetime of priceless memories.

I floated the idea of doing a project here in Nassau on Tug a few years ago and got a lot of interest. The idea was to do something off the beaches but in the end, every one I talked to locally thought it was just too risky, not being on beach.

I met a guy recently that owns an old building close to the beach. He probably has 40 to 50 hotel sized units renting cheap because the building is in a state of disrepair. Maybe I should introduce him to TUG.

 

[Nomad34]

Sounds like a plan. I agree with you about vacations and memories. In my time we only visited relatives for vacation but finally being the youngest child my father rented a cottage in Indian Rock's Beach for a week from a member of our church. That was in 1950 and my eyes were opened to new ideas in vacations. When my aunt left me money to travel I discovered TS was a great way and VIP was the path. I now invite friends to visit while I am in a TS or a hotel and it has been very less stressful than trying to have them at home.

 

[JIMinNC]

There have been a couple of comments in this thread to the effect that commissions are 50%. That's not true. Total marketing costs for most developer timeshares are usually around 50%, but only a portion of that cost is the commission paid to the sales person. The costs of the gifting/discounted stays used to get people in the sales rooms, the slick brochures and videos, and all of the other costs of running the marketing operation (telesales, rent on sales rooms, etc) are very significant are are probably the large majority of the 50%.

As dioxide45 noted, the reason marketing costs are so high is that timeshares are products that are sold, not bought. It would be nice for everyone - both developers and prospective buyers - if that could change, but it's unlikely to. Maybe the "dream" business model outlined by WalnutBrown could cause such an evolution to happen, but I think we all understand that is an unlikely scenario. Too many business models have been successful using the old model.

 

[WalnutBaron]

Actually, it worked quite well if it weren't for the 2007 recession and GM going into Bankruptcy. GM shed Saturn and Pontiac in an effort to remain in business.

The quality of the GM cars are better today, yet Toyota and Honda continue to produce superior vehicles (this should promote a lot of chatter, lol)

I'll also argue that Saturn was an excellent company with decent quality, but it couldn't survive the mismanagement of its parent company. The no-haggle sticker price sales model is well-established now in the auto retail industry. The largest reseller in the country--CarMax--uses and has used this model for more than 20 years, inspired by Saturn.

 

[JohnPaul]

Why not go with a points system & charge MF based on points?

You mean like Worldmark and Vacation internationale and Shell?

So that a one bedroom in low season actually costs me less MF than a one bedroom in high season since the points are lower and I pay MF based on points?

One of the many reasons I love true points systems.

 

[JIMinNC]

You mean like Worldmark and Vacation internationale and Shell?

So that a one bedroom in low season actually costs me less MF than a one bedroom in high season since the points are lower and I pay MF based on points?

One of the many reasons I love true points systems.

Marriott's Destination Club does the same.

 

[jehb2]

GM tried that model with their Saturn dealerships. You walked in to buy a Saturn and paid the sticker price. ...And look how well that worked. Saturn Corporation b. 1990 d. 2010 RIP

My last two cars were purchased at a Honda dealership that has this model and they do very well. Also, they continually mark down any car that sits on the lot too long. I could have gotten a new white Honda mini vans for a really great price but I didn't want a white mini van. Apparently neither did anyone else. Still, the price I paid for my two cars was cheaper than average and without the haggling.