Monday, February 22, 2010

New vs. Resale

Interesting finding recently released through ARDA Internationl Foundation concerning reasons for consumers hesitating in purchasing timeshare.

Hesitation Bought New Bought Resale

Price 36% 11%
Concern about annual fee 26% 22%
Possible future annual fee increase 26% 17%
Not sure if would be used enough 23% 25%
Same day purchase 26% 14%
Monthly payment 24% 19%
Wondered if "too good to be true" 17% 22%
Pressure during sales presentation 19% 17%
Down payment 17% 19%
Interest rate 16% 14%

What really stood out for me was the 22% of consumers who thought that the product might be too good to be true when dealing with resellers vs. only 17% of consumers when dealing with "new" timeshare.

I can only attribute this finding to the fact that the respondents must have been dealing with an actual sales presentation or "pitch" with the resellers...not buying off of a site or from a previous owner.

As the industry has heard time and time again, sales presentations are NOT the way to reach out and make a positive impact on today's consumers. They demand transparancy and will seek out many opinions before making a purchasing choice. I've always said it..."an educated consumer is the timeshare industry's (all aspects of the timeshare industry) best friend."

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