Virtual Sales Presentation

[davidvel]

Had our first virtual sales presentation at our kitchen table after more than a dozen in person "owner updates." It was with a nice lady in the Florida corporate office. She spent about 20 minutes on a script of obvious things any owner should know. After that she pivoted to how buying points would increase our status despite me telling her we could just rent points if we needed any. Then she left for about 15 minutes and came back and said the best she could do is a hybrid sale at about $7 per point.

Needless to say we didn't buy and never would. It is still crazy they pay us $250 to sit on a Teams call for 45 minutes. And no, we had no intention to buy, and took their money anyway, and will continue to do so. (It is not fraud, nor a "grift," but as they call it a gift.) Thank you to them for paying for our Ko Olina week through all these updates. Quite the business model MVC has going here.

ETA: Not sure if she will make it in Abound sales, as it was the first time were were not lied to/misled at an MVC sales meeting.

 

[DanCali]

It is still crazy they pay us $250 to sit on a Teams call for 45 minutes.

It's a numbers game for them.

They buy something for ~$2 and sell it for ~$17. The "sales and marketing" are just part of the expenses they need to incur to get people who will eventually be on the other side of that transaction to buy.

Total timeshare sales seems flat over 3 years but interesting how it seems that there's an inverse relation between the ROFR price over time (cost of vacation ownership product decreases as % of sales) vs the sales and marketing (increasing over time as % of sales).

 

[Hindsite]

Total timeshare sales seems flat over 3 years but interesting how it seems that there's an inverse relation between the ROFR price over time (cost of vacation ownership product decreases as % of sales) vs the sales and marketing (increasing over time as % of sales).

Does the Cost of the products include the maint fees on unsold inventory that is in the sales inventory or is that somewhere else?

 

[Big Matt]

I've had the same experience several times. No pressure at all. Just remember to mute yourself and turn off the camera when the sales person goes away.......

I often wonder if this is really practice for sales folks who are being trained to go on site.

 

[DanCali]

Does the Cost of the products include the maint fees on unsold inventory that is in the sales inventory or is that somewhere else?

There are a bunch of other things in revenues and expenses. I just focused on the timeshare products. Sales and marketing is a huge expense each year.

I didn't did too deep but I imagine the unsold inventory is also rented, so perhaps the related MFs are part of the rental expenses(?)

 

[davidvel]

It's a numbers game for them.

They buy something for ~$2 and sell it for ~$17. The "sales and marketing" are just part of the expenses they need to incur to get people who will eventually be on the other side of that transaction to buy.

Total timeshare sales seems flat over 3 years but interesting how it seems that there's an inverse relation between the ROFR price over time (cost of vacation ownership product decreases as % of sales) vs the sales and marketing (increasing over time as % of sales).



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I get this for a random mark. But for those of us that bought only resale, have attended many, many times and never bought from them, the numbers don't add up at all. They have all this data, even the salespeople know during the presentation. It's an utter failure on their part, but we appreciate it and hope they don't change.

 

[rickandcindy23]

The taking back Abound via ROFR and reselling is quite a racket, especially at $14.17 per point.

How do people deal with the loss of buying and then giving them back via ROFR for $1-2 per point? I would be miserable.

 

[Dean]

I get this for a random mark. But for those of us that bought only resale, have attended many, many times and never bought from them, the numbers don't add up at all. They have all this data, even the salespeople know during the presentation. It's an utter failure on their part, but we appreciate it and hope they don't change.

That would be my logic looking at it as well but I have to assume they have more data than we do else they would exclude a certain element more than they do. I suspect the sales team is largely on commission so their costs for a non sale are somewhat limited to the overhead and bribes to some degree.

 

[davidvel]

That would be my logic looking at it as well but I have to assume they have more data than we do else they would exclude a certain element more than they do. I suspect the sales team is largely on commission so their costs for a non sale are somewhat limited to the overhead and bribes to some degree.

At first blush that would be the logic, but many, many TS systems don't let resale buyers, or potential victims that have not bought after multiple presentations attend. I agree we don't have the data they have but at some point it is fairly obvious that someone is not going to buy. At our last handful of "updates" the salesperson has said this once they look at our sheet in the first few minutes.

I think it is just a legacy numbers game that has not been updated for whatever reason. As I said, we have amassed thousands of dollars of payouts for these presentations and would never ever buy. Maybe we are an outlier, but it is still real $$ in the end. , and I cannot fathom the business justification for inviting us.

 

[Jimster480]

At first blush that would be the logic, but many, many TS systems don't let resale buyers, or potential victims that have not bought after multiple presentations attend. I agree we don't have the data they have but at some point it is fairly obvious that someone is not going to buy. At our last handful of "updates" the salesperson has said this once they look at our sheet in the first few minutes.

I think it is just a legacy numbers game that has not been updated for whatever reason. As I said, we have amassed thousands of dollars of payouts for these presentations and would never ever buy. Maybe we are an outlier, but it is still real $$ in the end. , and I cannot fathom the business justification for inviting us.

You say you own in your bio though, so I imagine that means you do have Ownership but via Resale.
It still seems insane that they continue to pay you to present you with the options to buy again and again. Every time I go to any Marriott resort they always ask me to do a presentation. I really can't understand it.

 

[Dean]

At first blush that would be the logic, but many, many TS systems don't let resale buyers, or potential victims that have not bought after multiple presentations attend. I agree we don't have the data they have but at some point it is fairly obvious that someone is not going to buy. At our last handful of "updates" the salesperson has said this once they look at our sheet in the first few minutes.

I think it is just a legacy numbers game that has not been updated for whatever reason. As I said, we have amassed thousands of dollars of payouts for these presentations and would never ever buy. Maybe we are an outlier, but it is still real $$ in the end. , and I cannot fathom the business justification for inviting us.

Given the history of continued bribes I must assume their numbers say otherwise. There may be smaller groups where it doesn't make sense but it may not be worth it to micromanage the situation since their actual cost on a failed tour is what, $500??? They're probably looking at the up front profit plus the long term income on additional management fees. I'd love to have an inside explanation from someone actually in the know.

 

[rthib]

The virtual calls may also be a good training tool for sales. I imagine the hit rate on virtual is much less so not as risky letting someone fail on someone who they got to walk into the office. Plus it is fully recorded so they can give good feedback. So $250 to train up a sales person with a real customer seems cheap.

 

[chinh9]

$7 dollars a point for a MVC fly. Points is really good for a developer purchase. I think right now it’s like 2.5-3 a point on rofr plus the junk fee that’s 5.5-6 resale so I’m shocked they offered it to you at 7 a point.

 

[Dean]

$7 dollars a point for a MVC fly. Points is really good for a developer purchase. I think right now it’s like 2.5-3 a point on rofr plus the junk fee that’s 5.5-6 resale so I’m shocked they offered it to you at 7 a point.

Once you get the details it likely won't sound so great. This was for a bundle, likely 3000 points plus a Gold Grande Vista week or similar. It's very possible to buy for less than $7 per point by buying Gold Spain weeks and still end up with fees slightly lower than just points. Even better would be to buy a good resale week then enroll with a week in Spain. This year a $15K purchase there will enroll one week, $30K for two weeks. If you bought a good week to enroll with low fees you could get the actual price down to under $4 PP for a GC 2 or 3 BR and yearly fees maybe around 65¢ PP going forward. Or if one invested more up front, they could possibly get the fees even lower.

 

[davidvel]

Once you get the details it likely won't sound so great. This was for a bundle, likely 3000 points plus a Gold Grande Vista week or similar. It's very possible to buy for less than $7 per point by buying Gold Spain weeks and still end up with fees slightly lower than just points. Even better would be to buy a good resale week then enroll with a week in Spain. This year a $15K purchase there will enroll one week, $30K for two weeks. If you bought a good week to enroll with low fees you could get the actual price down to under $4 PP for a GC 2 or 3 BR and yearly fees maybe around 65¢ PP going forward. Or if one invested more up front, they could possibly get the fees even lower.

I'm pretty sure it was an MFC week bundled with points.

 

[chinh9]

Ahh yes that makes sense. Then you’re stuck with a week somewhere that nets you decent points but gets you a crappy higher maintenance fee. Smart smart smart and savvy people around theses forums!

 

[Wanderlustgrl]

$7 dollars a point for a MVC fly. Points is really good for a developer purchase. I think right now it’s like 2.5-3 a point on rofr plus the junk fee that’s 5.5-6 resale so I’m shocked they offered it to you at 7 a point.

We just had our rep email us specials at $8.00 a pt with bonus pts and a free week. Seemed like a generic email that went to all her owners as she knows we are downsizing our portfolio and no longer interested in adding. Was interesting to see.

 

[Dean]

I'm pretty sure it was an MFC week bundled with points.

It's often been GV for these types of deals but the point I wanted to convey is it'll be a poor week which clearly you know as well. They are not going to push this with a Platinum MGO week or similar. If it's platinum it'll be somewhere like LE or Fairway Villas. If you push them they will provide an offer for a better week based on availability but the total price and the price per point will be higher. The one I've actually investigated that's applicable is MGO Platinum and the price to purchase it was slightly more than double what I could buy it for resale. Even then I'd have to enroll with a qualifying purchase. May as well buy it and enroll separately, the delay is easily worth the $15K savings.