Sales Training 101?

As most of you know, I was a full-time timeshare salesperson from 2000 to mid 2004 at which point, I left to start Timeshare Insights, with a clear understanding that I would be able to do more as a writer, educator and consultant.

I mention this because I recently came across some “sales training”…actually, one piece of paper that looked like this:

SALESREPS JOB

1. Real vacation commitment.  Close them on this.  Don’t move on until commitment is reached. 
2. Real ANYWAY money.  Must get SOLID commitment or you will get money objections at end.
3. MAKE THEM WANT IT!!!  Journal Pitch
4. Revisit ANYWAY monies before you show the price!!!
5. CLOSE THE DEAL!!

Should be simple enough!!!

Laughable, isn’t it?  Back in the dark ages, i.e. 2000 and 2001 when I was learning the ropes, my “steps to a sale” were more complex and in-depth than this.  And yet, here we are halfway through 2012 and this is what is being “taught” to salespersons?

Not only does it not address any solid objections that the consumer may have, it makes it sound like consumers are just going to roll over, dig in their wallets and hand over a credit card for $20,000.

I especially like #2…where they mention the ANYWAY monies.  Rather hard to do a “pitch” on the ANYWAY monies if the client is paying $99 for a 4 night stay at the resort and getting two attraction tickets.  Let’s see…$99 a year for 20 years would amount of $2,000…and an average timeshare is $20,000?  There are no ANYWAY monies!

Timeshare sales was without doubt the hardest, yet one of the most rewarding jobs I have ever had.  I knew that I was helping people have better vacations which they deserved.  What soured it for me, and continues to sour it for consumers everywhere is the fact that the money doesn’t add up, the questions never quite get answered and the salesperson is still in their 1980s mode.

Wake up timeshare industry…it's 2012. 

Complaints, Education and Good News

I just spent an entertaining 30 minutes online looking at various timeshare complaints...I know that my idea of entertaining may not be yours.

I'm left continually stunned by the lack of education that some consumers have about timeshare and why the industry doesn't fully embrace this education process that Timeshare Insights and other organizations are working towards.

There were complaints against both RCI and II about marketing packages, maintenance fees and resale values.  There were complaints against resorts having to do with exchanges and again, resale values.

People using words like "scam" and "ripoff" when they clearly don't understand exchanges, values or marketing.

You would think that for no other reason than to get themselves off the hook, timeshare organizations would embrace a comprehensive timeshare education system.  To say nothing of having an answer for so-called "experts" like Clark Howard who is famous for his "I wouldn't take a timeshare if it was given to me" rants and raves.

The bad news is that same old still holds in the traditional timeshare thinking.  The good news, the really good news is that by year's end, there are going to be at least two new organizations that are going to bring some long overdue education, information, transparency and help to consumers.  The benefits will also be there for the "good guys" in the industry, and there are MANY good guys within the ranks.

Stay tuned...it's going to be exciting.

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?

Some Questions To Ask BEFORE You Buy

It’s that time of year again…annual maintenance fees and special assessments are being mailed out and many timeshare owners are getting a very nasty surprise in the form of huge increases and huge unexpected assessments.

If you own at a Diamond, Wyndham and/or older resort, you know what I mean.  I’ve been hearing from owners who plead for help with a $3,000 assessment that was levied or increases in annual fees well over 30% year over year.

First, let’s cover a few questions that all potential owners need to ask before buying any timeshare:

1)    What are all the annual fees and what do they cover?

2)   What is the “cap” on how much the fees can be increased year over year?

3)   What is the five (5) year history on these fees?

4)   When was the last time a special assessment was levied?

5)   How much was that special assessment?

6)   How much of the resort is sold out?

7)   Is there a stipulation that in the event of a fund shortage, the developer is required to make up the difference?

8)   What is the current delinquency rate at this resort?

This is NOT a comprehensive list, but a good place to start.  (I’ll be providing a full list of the necessary questions in my forthcoming book, “Timeshare By The Numbers-A Guide For Consumers” due out later this year.

Now, for those of you who already own and are faced with a huge bill, here are some things you need to do…the sooner the better:

1)     Connect with other owners through timeshare forums and through publications such as TimeSharing Today to see what their thoughts are, if other owners have discovered something and to just share information

2)   Contact the resort directly and be certain that you are receiving a copy of the full annual budget, then familiarize yourself with it

3)   If you are unable to pay the entire amount due, contact the resort directly as soon as possible to work out a payment plan---they would rather hear from you than not hear from you

Another way of tackling these fees is to rent out your timeshare and use the proceeds to pay or at least partially pay for the fees.  It bears repeating that you should only be renting your HOME property, not exchanging it and then attempting to rent that.  Both RCI and II “frown” on that and there are a ton of cases where the owners’ exchange rights were suspended.

Maintenance fees and sometimes special assessments are part of timeshare ownership.  It’s important to remember that these are part of the “vacation experience”…whether you own timeshare or rent a hotel, you’re paying one way or another.

Timeshare, Travel and Isolation

I recently attended the Ataway Conference here in Orlando and was excited to hear from travel professionals about the issues they are facing today as well as learning from the best.

As is the case with every non-timeshare conference I attend, timeshare was NOT well represented.  To me, this non-attendence is one of the reasons that timeshare is considered the "red-headed stepchild" of the travel industry (although being a red-head myself I'm not sure if I should take offense of myself!).  Timeshare has much to learn from the travel industry, as I've written about in the past---and the travel industry has much to learn from the timeshare industry.

Tom O'Neill from United Mileage Plus' Program gave a very interesting overview of loyalty programs; United specifically, but really all of the airline loyalty programs.  From the harried note taking that was going on at my table, I could see that my fellow attendees "got" the gist of what Tom was saying and noting how they could improve their loyalty programs.

Then there was me.  Or rather I should say there was timeshare in it's isolation.

I think one of the major reasons timeshare is in the state it is...and by that I mean less than 7% of the population owns it...is that the industry clings to its guns that they're different.  Different in the way it's portrayed, different in the way it's marketed, different in the stubbornness that people like to believe that it isn't a sought after product and different in the way we treat our clients.

Airline loyalty programs are far from perfect, but they're ahead of what timeshare has.  Airline loyalty programs not only reward their clients, but they let their clients earn rewards by partnering with OTHER companies.  Other travel related companies to start with.

Once timeshare starts realizing that they are in the vacation and travel business just like everyone else in the market, I think we'll see a great improvment in numbers.

Secondary Market Timeshare Valuation

Yes indeed, there is a great need for a viable timeshare valuation strategy.  Why?  Consider these REAL ads:

1)  The Jockey Club 1 Bedroom Week 52  $1,000
2)  The Jockey Club 1 Bedroom Week 52  $100,000 (2 listings at this price)
3)  Summer Bay 3 Bedroom House Floating Time $2 (Yes, $2)

The truly insane thing is that these listings all come from the same site!

Mind-boggling, isn't it?

The Need For More Timeshare Consumer Awareness

While it is true that the average timeshare owner did NOT purchase a timeshare with the intent to get involved in meetings, read blogs, participate in forums or at the extreme, become involved with Class Action lawsuits, it has become obvious that timeshare owners DO need to become more aware of what is going on in timeshare as it has a direct impact on their ability to enjoy their timeshare.

Having gotten my start in front-line timeshare sales some 12 years ago, I can say with some degree of certainty that many of the issues facing both timeshare owners and resorts today could have been avoided if one word “transparency”, was more universally implemented.

I strongly believe that timeshare is a wonderful product and that more people should own it.  It’s a terrific way to vacation.  Having said that, there are some changes that need to be implemented in order to make it “better” for both consumers and resorts.  Unlike some both in and on the fringes of the industry, I believe that it can and should be a win/win situation; consumers don’t have to lose if resorts win and vice versa.

It starts with transparency, fiscal responsibility and consumer education/awareness.  Timeshare Insights was formed in 2006 because I believe strongly that “an educated and involved consumer is the timeshare industry’s best friend.”  If a timeshare resort or organization does NOT want their owners and prospective owners to be more informed, then I think there’s something wrong.  It sounds basic and a bit cliché, but organizations with nothing to hide don’t hide anything.

This consumer awareness can and should in my opinion start at the resort level.  Resorts should welcome questions, allow for sufficient time for a consumer to make a purchasing decision and by following up with that consumer whether or not they choose to purchase.  Resorts should be happy to have their owners get involved with timeshare owner groups and read books and blogs about timeshare.  Imagine how many problems that owners and resorts are facing in 2012 could have been avoided this more of this awareness and interaction had taken place in 2000!