DVC RESALES
DVC RESALES

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Old 07-06-2013, 07:06 AM   #16
jsolar
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Originally Posted by Kidanifan08 View Post
ROFR = Right Of First Refusal

When a DVC member decides to sell their contract, DVC has the first option to purchase the contract once there is an offer on the table. They generally take up to 30 days before making a final decision. It is a way for DVC to take ownership of points to then re-sell as a direct sale. This is the process during the purchase of a resale contract that generally takes the longest.

There has been a fair amount of ROFR activity recently on some of the older sold out resorts, presumably to fulfill waitlists for those resorts.

Thanks!!
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Old 07-06-2013, 07:30 AM   #17
VrBchJ
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Hello. I'm very new to DVC. What is ROFC?
It's ROFR. Right of first refusal. DVD has the opportunity to buy back any contract that's sold. If the price of the contract is too low they may buy it to keep the prices level. Or if they have a lot of buyers on the wait list for a particular property they may pick up contracts to fill those wait lists.
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Old 07-06-2013, 11:31 AM   #18
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Wow! Glad I bought my VWL contract last fall. I am sure at $66 per point it would have been taken. Thanks for compiling.
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Old 07-06-2013, 12:34 PM   #19
JustTinking
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Originally Posted by ELMC View Post
Typically timeshare costs are in the 25-40% range. So a BWV point that sells for $115 probably cost DVC somewhere around $35. In this case, they are paying $68...the profit margin is much less than usual. Put another way, they could have sold that buyer AKV which has a much higher profit margin, which is why guides typically refer to the older resorts as "sold out" when we really know that means that the initial offering sold out and they are still available (albeit with a wait list).

One other thing to consider is that at $68, DVD is making $47 in "profit" on that sale. But out of that $47 they still need to pay commissions, marketing fees, overhead, salaries, etc. When it comes down to it, ROFRing contracts at that level doesn't make anywhere near the amount of money that selling actively marketed resorts does. But, as is the case with ROFR and the inner workings of DVD, I am sure that there is something else at work that I know nothing about. But what I do know is that the profit just isn't there at these levels.
Okay, that's interesting. I see your point that the guides want to push the new properties because there is more profit in that for Disney. Wonder if the guide's commission is any different, selling new vs. older properties.

But like any business, keeping the customers you have is much less costly than finding new customers. So if an existing customer wants to add on, rather than buy a new resort, ROFR is one of the avenues that Disney has to get the point inventory to keep that customer happy. Disney cannot afford to say they are no longer selling a given resort, when there is a healthy resale market that will take that customer's business. The existence of waitlists says there is enough profit in add-ons to make it worthwhile.
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Old 07-06-2013, 06:44 PM   #20
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Originally Posted by JustTinking View Post
Okay, that's interesting. I see your point that the guides want to push the new properties because there is more profit in that for Disney. Wonder if the guide's commission is any different, selling new vs. older properties.

But like any business, keeping the customers you have is much less costly than finding new customers. So if an existing customer wants to add on, rather than buy a new resort, ROFR is one of the avenues that Disney has to get the point inventory to keep that customer happy. Disney cannot afford to say they are no longer selling a given resort, when there is a healthy resale market that will take that customer's business. The existence of waitlists says there is enough profit in add-ons to make it worthwhile.
My understanding is that the salespeople make a higher commission for the actively marketed resorts, but I may be wrong about that. And while I agree with your point about the cost of finding new customers, DVD's main objective with regards to add ons is to sell the existing resorts (for the reasons I mentioned before). The percentage of prospective buyers that knows about the resale market is very, very small. As for the wait lists, I view them more as a necessary evil and not necessarily a profit center for DVD. If you read the threads here, you will find that the "guides" are less than forthcoming about providing information to wait list customers. They want you to buy currently marketed resorts, anything else they treat as a bit of an annoyance.
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Old 07-08-2013, 06:10 AM   #21
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If you read the threads here, you will find that the "guides" are less than forthcoming about providing information to wait list customers. They want you to buy currently marketed resorts, anything else they treat as a bit of an annoyance.
Yes, I'll give you that!! LOL!! Reading recent threads it sounds like some of the guides are now trying to convince customers that Disney guidance currently to the salesfolks is that they won't wait list some resorts or ever ROFR them! If only!!
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