Monday, June 4, 2012

If We Follow This "Logic"...

We've heard it a million times...people don't wake up one morning and decide to buy a timeshare, so it has to be sold and the industry has to incent (bribe) people to come in for a sales presentation.

Interesting, isn't it?

Let's dig a little deeper.  Let's look at timeshare, fractionals/PRC and traditional residences...all of them different levels of real estate interests.

In the consumers' mind the differences are:  the cost, the usage and the relative importance of the purchases.  In the case of the sellers, the differences are:  the type of sales process and the duration of time allowed for the purchase.

Sales Process

Timeshare              Fractional/PRC                 Residence
Client incented       Targeted marketing           Relationship/
to attend pitch         Sought out                        Consultant

Duration                      

Must buy today       Weeks/Months                 Weeks/Months

So far this is what we've all heard.  But I thought for fun, I'd look at other types of purchases to see if anything else stays true to this way of doing things.

iPod Shuffle                iPhone                          Mac
Weekend Trip             2 Week Tour                 90 Day Cruise
CZ Earrings                2 Carat Diamond          10 Carat Bracelet
Iced Tea                     2 Chicken Strips           10 Piece Bucket

And I could go on and on...

The point is that I can't find ANY other product or service that would make the timeshare-fractional/PRC-residence scheme hold any water.  In none of the above cases does the "smallest" thing on the list require the bribe and the customer is not forced to buy it that day.

Simplistic?  YES.  I'll be the first to admit that comparing a timeshare to an iced tea and a residence to a 10 piece bucket of chicken is very simplistic.

But, sometimes simple is best.  35 plus years of making things complicated and not allowing people to buy your product; insisting that it must be sold has gotten the industry where?

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