October 31, 2014 — “Yes Bob and Mary, you can also rent ‘it’ out any year you want and put the rental money in your own pockets. And years from now when you’re done traveling you can also sell ‘it’ and get all your money back – money you would have spent anyway vacationing in cramped, no frills motel and hotel rooms…”
So Here’s The Scoop: For the past nearly five decades that ‘declaration’ is pretty much how reps have been instructed to ‘pitch’ the rent and resell component to prospective timeshare owners/members and factually it is true – as any TS owner/member can rent or resell ‘it’ — but not as easily as they believed it would be at the time they heard the ‘jingle’.
And so what was to become pretty much a rent and resell ‘it’ global nightmare really started somewhat innocently decades ago with the original T-Pitch being used, the basic “You can use, exchange, rent, will or sell ‘it’ any time you want”.
During that era most sales training for new reps only consisted of going on tour (“ride”) with another rep during just one presentation, keeping their mouth shut while doing so, listening to what the ‘lead’ rep said and did. And when that was over the new rep was tossed out on the sales line as fresh meat with orders to ‘parrot’ the rep they ‘rode’ with and left to sink or swim. Unfortunately, over time the vast majority of reps did just that – they sank into the bottomless pit of the Timeshare T-Pitch quagmire.
Yes, the T-Pitch has its usefulness. It was brought to our industry, in part, by former ‘dirt peddlers’ back then who had used the tactic selling mostly undeveloped land as either a retirement and/or investment scheme to folks induced to their sale centers.
When some of those reps moved from peddling ‘dirt’ to come in to TS Land they adapted their ‘pitch’ to selling slices of Paradise and then turned up the ‘heat’ (lies) to an unsuspecting audience who back then had never even heard of something called timeshares.
And turn up the heat they did – from asserting “tax free incomes” for life when renting ‘it’ to massive windfall profits when reselling ‘it’ years later, etc.
Most of the developers during that era turned a blind eye and/or deaf ear to these tactics and indeed many sales managers and PD’s encouraged their reps and especially their closers’ to “…work the greed factor…”
Sadly, this tactic is still rampant to this day in our global industry and each year unknown thousands and thousands of new owners/members leave their presentation carrying their ownership/membership ‘docs’ firmly believing they’ll be able cash in big time when, if not vacationing, they rent or resell ‘it’.
As I previously mentioned, any TS owner/member can do just that, however what they must be told is nothing short of the cold hard facts – and those facts were as applicable decades ago as they are today and will be for the foreseeable future.
So for you ‘reps’ reading this week’s Scoop – even though there are developers who forbid rent and/or resell ‘pitches’ – ponder the following for your amusement.
First off, many sales guests are thinking subjectively while enduring the presentation and if you’re going to ‘present’ rental and reselling you must do so by being objective.
One way, when the topic comes up, is to ask your sales guest the following question (and feel free to use your own words to fit your personality, etc.)
“Bob and Mary, for a moment I want you to picture in your mind all the motels and hotels you’ve seen all around (e.g.) Sacramento. Now wouldn’t you agree with me that those properties were constructed (at a hefty cost) because ordinary people are renting motel or hotel rooms just about every night of the year?
“In fact all the motels and hotels all over your State of (e.g.) California were built for the same purpose and more get constructed every year and that is also true of thousands and thousands of motels and hotels around the country and all over the world. Heck, we too, rent out our suites and get top dollar rental rates I might add.
“But, Bob and Mary, you have to understand that doing so is pure business and if you ever do decide to rent ‘it’ out you have to conduct yourself in a businesslike manner and do everything that is required to succeed, just like we and all the motels and hotels do around the world.
“Let me be perfectly clear folks. If you think for one moment you can text your inner circle of friends, your social media network, post a 3 x 5 card on the bulletin board at work or at your local community center and BAM, you’ve got a renter, well, maybe that could happen but in the real world it will take time, effort, energy and advertising dollars to rent ‘it’ out.
“And besides, Mary and Bob, most folks would rather use their time vacationing – travelling the world – visiting exotic locations, strolling along beaches, enjoying great times with their kids so that everyone can enjoy and take fantastic vacations together.”
And will that approach be appreciated by the sales guests?
Absolutely because they’ll understand you told the truth and even if their subjective thinking tells them they could rent ‘it’ (easily) anyway – that’s on them, not you or your developer.
As for reselling ‘it’ – It’s the same approach.
And the moral to the story is yes anyone can rent ‘it’ and resell ‘it’ and you can bet the farm that in the real accommodations rental universe – whether its across the street or around the world – hundreds of billions of dollars exchange hands every year renting accommodations as well as selling properties of all sizes, shapes and use models — including timeshares!
Good Luck Out There!
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Contributing sometimes extravagant, bombastic, emotional, pompous or even pretentious writings about the timeshare industry, Scoop covers an array of industry related subjects each week including inside information, tips, scandals, interviews, forecasts as well as new (good or bad) products and services — and, of course, all the ‘Good’, the ‘Bad’ and the ‘Ugly’.
Stay tuned for what is sure to be a fun ride and check back to Timeshare Scoop du Jour each week for more of the inside scoop.