October 14, 2016 — A brief report this past week on HLN TV stunned me because the program claimed that the average household cost in the USA for a “little-one” attending a daycare center is running about $9,800 annually, or $817 per month. Believing that HLN is part of Time Warner I thought the claim was probably accurate but decided to investigate a little further. Specifically, that is, to see how the basic cost of living in 2016 is relevant to timeshare developers’ requirements regarding the “gross annual household income” most insist is sufficient to be a qualified (Q’d) sales guest.
So Here’s The Scoop: As most would acknowledge, reports from various entities will often reach different conclusions on the same topic and for the cost of a daycare center for the average household I found other numbers, such as one from babycenter.com, suggesting the average annual household cost in the USA to be more around $11,700. Remember, we’re talking ‘average’ here.
Then, as I did a little more digging I found other interesting reports like one from the U.S. Government stating the cost for an average household to raise one (1) child from birth to the age of 18 can run upwards of a quarter of a million dollars ($250,000), nearly $14,000 per year (in 2016 dollars).
As I continued down that darn rabbit hole I came across some other interesting household numbers, too, such as Edmunds.com reporting the average new car payment in the USA runs around $480 per month.
Another source claims the average used car payment each month is a little over $300 and yet another report asserted the average car insurance payment for full coverage in the USA can run a couple hundred dollars per month as well.
Then I discovered another account that stated in the USA the average monthly rent people are paying these days seems to be around $1,000, as is, interestingly, the average home mortgage payment.
The further I investigated I started asking myself if all this could be true because when I started crunching the numbers I began wondering how a casa with a “gross annual household income” below $75,000 was meeting all these and other basic and mostly mandatory cost of living expenses in the U.S.?
After all, I thought, if you take just the average (new/used) annual car payments, the average annual car insurance payments, the average annual daycare expense and the average rent/mortgage payments – those alone are costing the average household nearly $30,000 per year!
And not that I want to bewilder anyone but a $30-K fixed annual net expense is about 40% of a “gross annual household income” of $75-K and it’s 60% of a “gross annual household income” of $50,000; aka: it’s a colossal chunk out of the old household budget!
Then I remembered what I wrote some time ago using this online cost of living calculator http://money.cnn.com/calculator/pf/cost-of-living/ that comparing a household in a place like Hattiesburg, MS with a “gross annual household income” of $44,000 with the same size household in San Francisco, CA, well in San Francisco it takes $31,000 MORE (a $75,000 “gross annual household income”) to pay for the same basic living expenses.
Now I bring all this up simply to make a point or two, one being that every sales rep needs to keep a basic log of all their most recent sales guests. Nothing too elaborate mind you. Just where the household is from (region), what their proclaimed “gross annual household income” was and the number of peeps living under the same roof.
This way the next time the boss asks the rep “…where’d ya get weak“>? (because the rep didn’t sell/close a ‘deal’) or worse, the rep gets fired for not making sufficient sales during a given period said rep can put the blame squarely where it usually belongs.
That would of course be on the developers’ plate for having a marketing system that doesn’t even have a regional schematic for their marketing reps to use that reflects the potential sales guests’ regional equivalency to the developers’ required “annual gross household income” necessary to be ‘Q’d’!
And in the cases when a rep is canned, armed with the facts, the rep can mention during that chat: “…it’s true, boss, that my last tour was ‘Q’d’ because the family of 5 from New York had a gross annual income of $65,000. BUT, sadly, due to the cost of living in the City, they subsist in a hovel, the kids brown bag their lunch to school, the family was on SNAP (food stamps) and they couldn’t afford to vacation regularly let alone fix the transmission on their 12-year-old car with nearly bald tires….’
The point being, in the Land of Time all around the world there are factual reasons why, on average, 80% (+ -) of all sales guests who attend those “90 minute informative” presentations ends in a ‘NO-SALE’ (NS).
And, unlike what some in ‘the biz’ preach – the lion’s share of all those ‘NOs’, millions of ‘em every year, is not because the rep was “…a weak p_ _ s” or that other TS 101-a BS that “An up is an up and a sale is made every time; either you sell them or they sell you…”
In fact, some people, yours truly included, could clearly, factually, systematically, mathematically and concisely demonstrate to any developer still using the marketing theory of the ‘masses’ Vs the ‘quality’ of their sales guests, how the ‘masses’ formula is costing them (and everyone else) millions of dollars in losses — a yuuge daily, weekly, monthly and yearly loss – that I can tell you!
Finally, any sales organization in any industry that pays hundreds of hard dollars per “qualified” prospect to have them then meet & greet the company’s sales professionals and if that sales team ISN’T closing, YTD, in the net 30% neighborhood with a VPG near or above $3-K then said companies have one or two costly problemos.
And I can make that suggestion because in the Land of Time (and other industries, too) that closing threshold and VPG minimums are exactly what a few timeshare developers (or companies) achieve year after year; and since they’re doing so – why would not other developers follow suit and do what is necessary to achieve the same results?
Oh Well, it’s only time and money – ‘NEXT’!
Good Luck Out There
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