May 13, 2016 — Several years ago I suggested that some developers ought to consider building and timesharing Park Models, a phenomenon that continues to sweep the nation. I also suggested they consider Yurts, too, some of which are pretty darned impressive and fancy. (Bluegreen Resorts actually has set up a “glamping” section at their Shenandoah Crossings resort in Virginia using Yurts, which has proven very popular.) And one of the reasons I made those suggestions was that constructions costs are so attractive that developers could shave thousands of dollars off their ‘retail’ prices while maintaining an attractive profit margin similar to what they generate with traditional timeshare projects selling at much higher prices to J.Q. Public.
So Here’s The Scoop: Now there is a new phenomenon taking hold across the USA that is being tagged “Tiny Houses”, to which cable channel HGTV has devoted an entire day’s worth of programming once a week. And though there is no shortage of naysayers criticizing these miniature homes others, such as Rod Stambaugh who was a giant on the tech side of the very profitable electronic payment business, jumped on board. Stambaugh not only built his own tiny house he also founded “Sprout Tiny Homes” located in Colorado, USA.
On the company website (sprouttinyhomes.com) they claim that the homes are “high quality, chemical free homes”; that they are “Stronger, Greener and Straighter” with “Structural Insulated Panel (SIP)”; that they “Build with quality and innovation” via “Innovative design and manufacturing”.
And on their home page they ask interested buyers to “Let us design and build your eco / tiny home (on wheels or a foundation) in our well equipped indoor facility. Our eco modular homes are just under 500 sq. ft., green, sustainable and very energy efficient”.
From what I’ve been reading these new Tiny Homes, the Park Models and/or those Yurts are growing in popularity with all demographics, including the ‘youngsters’ in the higher income brackets, empty-nesting married couples, singles of all ages and retirees as they find them more useful, desirable and an attractive alternative to the high costs of traditional and/or vacation home ownership. Hmm, might be a clue there.
So why not carpe diem, timeshare developers? Seize the day! Millions of consumers are interested in smaller vacation casitas and selling them itty-bitty timeshares would be ‘hot’ because when it comes to slices of time size doesn’t really matter as long as the tiny timeshares are marketed to the appropriate demographic.
Marketing aside, a non perpetual RTU (right to use) program for ‘X’ years would be a perfect fit for the right audience — and in this era offering an attractively priced product with an exit strategy on those magical little round tables in the Land of Time would be an extremely attractive, popular and sellable option!
Good Luck Out There
© Copyright Inside the Gate. All rights reserved.