If, like me, you attempted to/were able to purchase tickets for Bruce Springsteen and the E Street Band’s US tour next spring; you’re undoubtedly aware of the horrendous dynamic pricing structure that TicketMaster was implementing. This dynamic pricing structure resulted in nosebleed seats going for more than $1,000 and standing room only floor access going for more than $5,000 in some arenas.
It’s been a public relations nightmare for Bruce and his management who went along and even justified this to the dismay of many long time fans.
This dynamic pricing structure is very similar to the pricing structure in place by both many/most timeshare developers and the nefarious self-proclaimed exit companies.
As I’ve written about previously, there’s no MSRP for a timeshare. Disney Vacation Club is the outlier in the industry, as their prices are easily discoverable and oftentimes readily posted on social media sites.
Consumers have no way to compare prices between developers even in the same location, or even between different owners in the same resort.
That’s because the sales personnel are trained to quote an often insanely high price after which the drawn out negotiations begin. The consumer may think they’re getting a deal, when in truth, they’re paying some arbitrary amount based in large part on what the sales person/sales manager thinks they can afford. This was the procedure way back in 2000 and as I’ve discussed in previous posts, still common practice today.
While John and Mary might end up paying $20,000 for 100 points at XYZ Resort, Rodger and Janice might end up paying $22,500 for the exact same thing. Rodger and Janice will never know this unless they run into John and Mary at the pool and strike up a conversation. Then again, John and Mary might be disappointed to learn that Tim and Nancy were able to negotiate their purchase price down to $17,350!
The entire process is opaque and puts consumers at a disadvantage.
Not surprisingly, the nefarious self-program claimed exit industry operates the same way. Not surprisingly because most of those employed in the exit industry either got their start in the timeshare industry or carefully studied the playbook.
Take for example the following actual amounts paid to one of those exit companies that’s currently in litigation with a major timeshare developer:
$5,367
$10,950
$20,000
$8,501
$8,100
$25,300
$7,180
$7,500
$5,910
$7,992
$9,147
These are all actual fees charged to “exit” owners from the same developer! Seems arbitrary, huh? Worse yet is that NONE of these consumers were able to get out of their timeshare.
Compare those prices to what an attorney will charge. I spoke with attorney Andrew Meyer of The Finn Law Group in Florida who told me that his firm “charges a fixed fee that could be as low as $3,750 or higher depending on the complexity of the matter and if the consumer has more than one timeshare. In any event, the fee is agreed upon before any contract is signed so there are no surprises.” Unlike the scammy exit companies, this firm actually does something for the money which more often than not results in a positive outcome for the owner.
The moral of all this is that the consumer is almost always in a losing situation when it comes to pricing in the timeshare industry and the cottage industries that have sprung up around it.
All the more reason to not make impulsive decisions when buying a timeshare, engaging with a company that claims to get you out of a timeshare or sadly, purchasing concert tickets.
See you in the nosebleed seats at The Amway Arena in February.
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