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Just Got The Royal Screw From Rci

gnipgnop

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One week ago I deposited my Waterside by Spinnaker in Hilton Head, SC, 3 BR-3BA, Week 12 (spring break) into RCI. I received 26 TPU's for this deposit. Today I went looking on line and saw my week, Waterside by Spinnaker in Hilton Head, SC, 3BR-3BA, Week 12 (spring break) available to members for 47 TPU's. I couldn't believe it! I called and was told by a Guide, Connie, that there was nothing that could be done to change TPU's because they were set according to supply and demand blah, blah blah.
then in the next breath she tells me that the demand is higher than the supply in HHI at that time of year. WHAT!! :eek:

So I asked, keeping my cool, to speak to a Supervisor. James (the supervisor) came on the line and told me basicly the same thing. I told him I felt this was so unfair, giving me 26 TPU's and RCI asking 47. That's a 21 TPU difference! I paid $$$ for the week, pay maintenance fees yearly, paid for membership into RCI since 1994,....isn't there something you can do for a loyal member?? He said distinctly "NO". So I told him that II was now accepting Spinnaker Resorts into their membership and maybe next year I will give the week to them. He told me and I quote: "if you feel that is something you want to do then do it." He also told me that people are leaving II and coming back to RCI because II has too many problems. I think he's full of crap. How can you treat customers like this?? He said there was no way they will change the TPU's once they are in your account. I asked him why couldn't the tech. dept. make the change if the order came from a supervisor. Got no where. I am so pissed at RCI right now I could "spit". Sorry to go on like this but I had to get it off my chest. :bawl:
 

ronparise

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Were you promised more than 26 tpu when you made your deposit? if not I dont see your problem. You were offered a price that you thought was fair, and you accepted it.

Now your job is to make the most of your 26 tpu...I bet you could get 2 or three weeks for it
 

LisaH

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If your week has not been taken, ask politely to withdraw your week. You can always deposit at a later date.
 

Ridewithme38

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Do you think 7-11 pays the same for a slurpee as they sell it to you for? How about a Pizza place for the ingredients in their pizza? Think McDonalds pays the same for their burgers as they sell them? Big Box stores like BJ's and Costco also have membership fees, but they still sell their products for more then they buy them for

Same with RCI, they paid you 26 TPU's for your week, it wouldn't make sense for them to sell it for 26 TPU's, no other company does that, why do you think they would?
 

bobby

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I disagree that RCI should ask more points than they give. RCI is earning their $$$ through membership fees and exchange fees. If the week is only worth 26 trade points for the depositor, it should be worth the same for a request unless devalued for sitting in inventory too long.
 

susgar

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I agree RCI is a company like many others trying to make money, they need to in order to stay in business. But I have to agree there is too much of a disparity between the TPU's given for the deposit and the number of points required to obtain the week. I also would be upset. Sue:mad:
 

gnipgnop

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I never thought 26 was fair when I made this deposit..... but took it anyway not knowing any better. Then for RCI to turn around and put the screws to me and offer it to other members (like most of you) for 47 TPU's. THAT'S CRAZY!!
Rider: Of course RCI has to make a profit on their exchanges....as McDonalds, Pizza Places and others you mentioned and I have no problem with that but look at the difference in the TPU's. 21 .... How would your feel?? I know, I know be happy with what I got and make the most of it..........but gee.........this really hurts. I feel so cheated.
 

ronparise

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I agree RCI is a company like many others trying to make money, they need to in order to stay in business. But I have to agree there is too much of a disparity between the TPU's given for the deposit and the number of points required to obtain the week. I also would be upset. Sue:mad:
I may look at this different than most others, but when I deposit a week into RCI because I either dont want it or cant use it myself...That I get anything back seems pretty good to me

And wouldnt rci make more on the deal if they let someone else have it for( in the ops example) 23 tpu...That way they would get two exchange fees out of that guy instead of one...No I dont think RCI is doing this just to make more money...I really do believe they do it to level out supply and demand
 

ronparise

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I never thought 26 was fair when I made this deposit..... but took it anyway not knowing any better. Then for RCI to turn around and put the screws to me and offer it to other members (like most of you) for 47 TPU's. THAT'S CRAZY!!
Rider: Of course RCI has to make a profit on their exchanges....as McDonalds, Pizza Places and others you mentioned and I have no problem with that but look at the difference in the TPU's. 21 .... How would your feel?? I know, I know be happy with what I got and make the most of it..........but gee.........this really hurts. I feel so cheated.
Perhaps the guy that got cheated was the one that paid 47 tpu for the week, not you
 

jerseygirl

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I disagree that RCI should ask more points than they give. RCI is earning their $$$ through membership fees and exchange fees. If the week is only worth 26 trade points for the depositor, it should be worth the same for a request unless devalued for sitting in inventory too long.

Well said Bobby. It seems as if others have forgotten that RCI is an exchange company - they pay $0 for their product.

This is tantamount to the NYSE having a bid of 26 and an ask of 47 on XYZ.
 

Karen G

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And wouldnt rci make more on the deal if they let someone else have it for( in the ops example) 23 tpu...That way they would get two exchange fees out of that guy instead of one.
That was my thought. RCI makes their money on exchange fees and renting out members' deposits to the general public or other members. Assigning TPU values to deposited weeks doesn't seem like it makes any money for RCI.

It does seem to me that any given week has a TPU value, and it should be the same value whether someone is depositing it or exchanging for it. The OP wouldn't even be able to trade back into her own week with the TPU she was given for it.
 

eal

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I for one would be interested to hear if you can get back your week. SFX would be happy to have it and you would get a great exchange.
 

Talent312

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Its more like selling something at a garage sale for peanuts.
You're happy just to have the item out of your house.

Then seeing your item auctioned on eBay for an absurd sum.
and thinking, "Heck, I could'a made out like a bandit."

If it's really worth that much, rent it yourself.
 
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T_R_Oglodyte

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That was my thought. RCI makes their money on exchange fees and renting out members' deposits to the general public or other members.
I think that is a common misperception about RCI. Like most companies RCI generates revenue from a variety of sources, and all of those are added together and netted against expenses to yield profit.

Take away one revenue source, and the company will try to make up the missing revenue somewhere else to maintain profitability.
 

Karen G

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I think that is a common misperception about RCI. Like most companies RCI generates revenue from a variety of sources, and all of those are added together and netted against expenses to yield profit.

Take away one revenue source, and the company will try to make up the missing revenue somewhere else to maintain profitability.
Can anyone explain how RCI gets revenue from giving the OP 26 TPU's for her week and requiring someone else to use 47 TPU's for the same week?
 

amycurl

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Costco also have membership fees, but they still sell their products for more then they buy them for
While this is true, the margin that Costco makes on product is very minimal, usual no more than 10-20% (so significantly less than this RCI skim.) Costco makes all of their profit on Membership Fees.

Actually, it sounds like a lot of people would be happier if RCI's business model was more like Costco's.
 

tschwa2

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Can anyone explain how RCI gets revenue from giving the OP 26 TPU's for her week and requiring someone else to use 47 TPU's for the same week?
My take: RCI makes deals with developers like Vacation Villages (also associated with Massanutten) to give owners higher than needed to trade back in and in return the developers give them oodles of unsold inventory which RCI can rent out or get extra exchange fees (for example my Massanutten Christmas week gets 23 for each 2 bedroom but I could trade back in for 14 tpu's for each half). They need to somewhat balance out so they screw the independents and developers that won't play along.

So I told him that II was now accepting Spinnaker Resorts into their membership and maybe next year I will give the week to them. He told me and I quote: "if you feel that is something you want to do then do it." He also told me that people are leaving II and coming back to RCI because II has too many problems. I think he's full of crap.
The problem with this is that it is my understanding that Waterside only trades into II if you have the Spinnaker Flexible Ownership which you would have to pay pay $thousands for and basically you lose a lot of your deeded rights. So II is not an option. But SFX is and if you like the kind of inventory they have it might work for you.

RCI doesn't play nice but they still have the most inventory and until someone can top them we have to play by their rules or go somewhere else.
 

JulieAB

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I sympathize with you! RCI is giving me 5 TPU less this year than they are charging for the same week. It's NOT supply/demand because I watch my week constantly! And it's not like Christmas at Disneyland ever really changes anyway! I think the main reason it rubs me this year is last year they gave me 2 TPU's MORE than they charged for the same week, so I guess I was "spoiled." :rolleyes:
 

gnipgnop

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Thanks everyone ~ there's a lot of great support here. I wish I could get my week back but I'm not sure how to go about doing it at this point. I certainly agree that what TPU's are assigned to deposits should be the same amount that are needed for an exchanged. Fair is fair!
 

LisaH

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Well said Bobby. It seems as if others have forgotten that RCI is an exchange company - they pay $0 for their product.

This is tantamount to the NYSE having a bid of 26 and an ask of 47 on XYZ.
Totally agree!
 

DrBopp

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Can anyone explain how RCI gets revenue from giving the OP 26 TPU's for her week and requiring someone else to use 47 TPU's for the same week?
One way would be to charge a member an extra $100 to combine two or more deposits together to be able to exchange for that unit. Others come to mind.

Gordon
 

Beefnot

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Gnipgnop, you know how you deposited TODAY and got to combine TPUs for FREE (your other post)? Well, maybe there were strings attached that are only now becoming clear. Perhaps RCI partially subsidized their "generous" offer by hacksawing the TPUs of your deposit?
 

dougp26364

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Unless more owners keep their weeks and refuse to give them to RCI, this will continue. Owners have to realize they control their weeks. If you don't feel you're getting the value from your week that you deserve, then consider the other options.

This is one of the reason I've advocated buy where your happy to go or, buy into a system that allows internal exchanges to the places you want to go. I.I. has problems but, I haven't had the issues with I.I. I've encountered with RCI. Until RCI treats owners with the knownledge that owners OWN the weeks and they only provide a service, I won't use them. Once they come to their senses and realize they don't own the weeks they rent, maybe I'll consider them again.
 

MichaelColey

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I would likely be upset if I was in the same situation, but I have a hard time being too sypathetic with someone who would accept 26 TPU for something they think is worth more (or someone who would use 47 TPU for something they think is worth less). Especially with everything transparent on RCI now.

Only deposit and exchange when it's beneficial to you.
 

DaveNV

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While this is true, the margin that Costco makes on product is very minimal, usual no more than 10-20% (so significantly less than this RCI skim.) Costco makes all of their profit on Membership Fees.

Actually, it sounds like a lot of people would be happier if RCI's business model was more like Costco's.

Actually, this isn't quite correct. (My spouse is a career employee at Costco.) Corporate profits at Costco comes from the sales margin, which can be exceptionally low, as you pointed out. The membership fees cover employee wages and warehouse overhead. So the analogy doesn't really fit into the larger RCI discussion in this thread.

My response to what RCI is doing with deposits goes further than objecting to TPU number differences between the deposit and the available exchange. I seriously object to RCI renting out deposited weeks without making them available for exchanges first. The filters in place that hide prime deposited weeks smacks of usury and fraud. To my way of thinking, I should be allowed to take ANY week on deposit, if I have the TPUs on file. It totally rankles me that I can't exchange into a prime location in a prime week, yet I see many, many, MANY desirable weeks available to rent.

My response to that is simple: I vacation where I own as often as I can, and I'm working toward using the alternate exchange companies for excess weeks I may have. My ultimate goal is to stop using RCI altogether. If everyone who dislikes what RCI does would vote with their feet, they'd be hard pressed to take advantage of their members like they do.

Dave
 
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