April 19, 2013 — Having reviewed the 2013 owner(s) data for both Interval International (II) and Resort Condominiums International (RCI) I am pleased to announce the good news that should make every developer and their sales reps as happy as a politician who sneaked in a provision to a Bill, unbeknownst to anyone and deeply hidden, that subsequently passed and became the law of the land.
So here’s the scoop. Without boring anyone who hasn’t read the reports with in-depth charts, diagrams, 8 x 10 HD photos with circles, arrows & percentages attached thereto, there is rock solid, crystal clear and 100% conclusive evidence that the vast majority of all sales guests who become ‘owners/members’ do indeed have annual household incomes exceeding $60,000 (gross) per year.
Additionally, about 50% of all RCI members (aka: ‘buyers’) have an annual household income around $100,000 and within that group roughly 42% of their members (aka: ‘buyers’) have incomes exceeding $150,000 per year.
Next, II tells us in the USA that among their members (aka: ‘buyers’) those sales guests represent an average annual household income in the $122,000 range with 25% of those prospects buyers members earning in excess of $150,000 per year and about 10% of those folks earn at or above $200,000 per year!
Of course there have been and are timeshare buyers who earn much less but when it comes to the old affordability issue among the people who do purchase a slice of paradise, the overwhelming majority of the time it is not sales guests with gross annual household earnings in the $40-60-K range.
That said I’ll also go out on a limb and suggest that those prospects on the lower income level of the current qualifications guidelines that some developers embrace — who cost the developer the same $$ to snag (aka: ‘hawk’) as the higher-end earning prospects— probably don’t vacation that much anyway.
No, not because they don’t like, want or dream about travel but because of those other darned financial needs, obligations and pesky commitments they must meet paycheck to paycheck, week in and week out from their lower paying ‘gigs’.
And yet despite the income validation and my little theory about other financial needs being a restrictive (purchasing) factor there are some developers and/or their executive management who in remain adamant in 2013 — despite colossal evidence to the contrary — that a (e.g.) $45-K annual gross household income is a ‘qualified’ sales guest.
Just for the record I have never professed to be the brightest bulb in the marquee. From a business perspective however, IMPO, anyone in our industry believing such ‘tours’ are truly qualified & actually authorizes the expenditure for those sales guests suggests to me that they are very sadly mistaken, to put it kindly.
Of course there are other notions justifying the expenditure for these sales guests, including the room-fill theory. And that the numbers (volume) will continue to reward those developers who embrace the lower income prospects even though they contribute to dismal closing ratios & VPG’s. But at least, I guess, they still have a shot at selling an occasional ‘exit’ (trial) program.
Oh, and let us not forget about the never prejudge thumpers. You know them. They’ll preach to the unbelievers that to prejudge is a deadly sin and yet, drum roll please, they talk out of both sides of their mouths and prejudge all the time; else they wouldn’t have any income requirements in the first place.
As such, and since time is money, I have a resolution to the dilemma. From this point on every sales rep who is forced requested to invest their expertise, talent, knowledge, skills and ‘earning hours’ with every sales guest generating less than $60,000 (gross) per year (per household) is to be compensated a flat fee by the ‘company’, per ‘tour’, for services rendered.
And that compensation is due and payable regardless if those specific sales guests purchase or not; plus that payment must be based on what the average commission is normally earned by each sales rep when they sell a ‘tour’ who has a household income at or above $60,000.00 per year level.
Besides, if a developer is more than willing to pay out a marketing cost of (e.g.) $450.00 in cold hard cash for every one of those low income sales guests then by their own logic & admission they ought to be happy to remunerate their sales reps for ‘taking one for the team’ every time they do so.
Naturally the modest expense won’t come out of the company’s profits and/or bottom line as with all businesses, in all industries and with all products or services the administrative, marketing/sales costs etc. are absorbed by the ‘consumers’ (buyers).
That process and component is after all just one aspect of how capitalism works around the world and has successfully done so since the dawn of commerce!
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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'.
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