December 4, 2015 — About 7 months ago I ran into a friend I hadn’t seen in some time who is also a closer and to my surprise, she told me she was no longer in “the biz’. When I asked why she explained that she was “…tired of selling something that has no resale value of any kind.” She said it troubled her so much that she lost sleep over the issue and that as an industry we have no “moral compass”, in part, because we never tell the buyers that the value of the timeshare they purchase plummets worse than buying a new car from a dealer that loses up to 35% of its selling price the second it is driven off the lot. I continued to listen closely and when she was done I started probing.
So Here’s The Scoop: I said I agreed with her position and then asked Liz (not her real name), “So tell me, with the exception of there being no resale value of the timeshare plans you were selling are there any other reasons why you quit the industry?” She didn’t hesitate a second: “No, that’s it! I just got sick to my stomach knowing that they can’t get any of their money back if they wanted or needed to sell.” She concluded by stating, “Christ, they can hardly give the damn things away.”
I told her I understood and then asked, “Just so I’m clear on this Liz, are you telling me that is the only reason you quit?” She confirmed that and so I asked, “In other words, and correct me if I’m wrong, but if there was a timeshare plan whereby your clients could resell, say, 10 years later and get some of their money back or maybe all of it if not more, you’d still be in the biz?”
“Absolutely!” Liz whipped back and went on saying how she loved selling timeshares because doing so helps people set a plan in motion to travel the world, visit exciting & romantic destinations while they experience new cultures with their loved ones and making new friends along the way, etc.
I agreed and then said, “Liz, it’s just an observation but it seems to me you have forgotten the basics to timesharing, one fundamental principle being that if a person is going to spend the money anyway renting hotel rooms, motel rooms, suites or whatever (vacationing) then where in the hell is the money-back angle doing that?”
She paused for barely a nano-second and answered, “I understand that Scoop but another problem is that too many of my tours don’t or can’t afford to travel on a regular basis so they’re not going to spend the money renting.” I sort of agreed with Liz on that.
But then I asked my friend, “Would not the majority of your tours like to vacation on a regular basis if they could afford to do so and wouldn’t they prefer to vacation in the types of units timeshares offer Vs cramped no-frills hotel or motel rooms?”
Liz acknowledged in the affirmative on both accounts and then I asked her if she ever used the ‘Old Money Close’ (OMC) I shared with her some time ago to address those issues (and more)? She hesitated before answering and then admitted she had not really tried it out.
“You’re kidding me!” I responded. “Considering why you quit are you now telling me that you didn’t give it a shot knowing how it eliminated the resale issue, how it was guaranteed, how it resolved the perpetuity dilemma, the TVM (time value of money) objection and how any owner/member could get some, all or more of their money back without trickery, heat, smoke or mirrors?”
Liz told me she had intended to try it out but simply forgot and then asked me to refresh her memory as to how it worked but before doing so I asked, “Liz, first take a moment, clear your mind and then in 25 words or less tell me of any products or services you can think of that a consumer can buy today and are then guaranteed they can sell it tomorrow, at any price, let alone at a profit?”
She fumbled for a few minutes, made a few suggestions and then after we both chuckled about that little reality I explained the OMC (again) – and as I did, she was smiling, nodding her head and finally agreeing that close would have resolved many of her and her clients concerns etc.
I tell this story because before we went our separate ways that afternoon I asked if she thought she might come back to the Land of Time because selling what she was now selling didn’t really seem to fit her ‘calling’, so to speak. She wasn’t sure, said she would let me know, and our meeting concluded.
Well, as it turned out Liz did come back to Timeshareville and she is kicking ‘butt’, nearly doubled her net income, sleeps well at night and the other day she touched base with me to let me know she was just offered a pretty decent management slot with a developer that included all those extra special management perks.
And the moral to the story girls and boys that you can take to the bank when selling and closing is getting back to basic timeshare 101-A. And that is all vacationers rental receipts are absolutely worthless, totally valueless and a guaranteed 100% loss!
Good Luck Out There
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