|
Week of August 15 - August
21, 2003
Street Talk is a compendium of tips, facts, gossip,
rumors, speculation and editorial comment.
This Column is Published Every Friday, with
frequent updates throughout the week
E-mail: news@thetimesharebeat.com |
Email: street@streettalkblog.com
click here for Street Talk International
There has been an interesting development in the Epic Resorts saga. On Friday afternoon
(August 8) Epic went to the court to get approval for the bidding procedures described in the Bluegreen
agreement, which we told you about last week. Sunterra came to the hearing and
offered what the court perceived as a better deal. The price was the same but they offered to be the stalking horse
without a fee should they not be the final bidder for the company. (The Bluegreen agreement called for them getting
a fee of $750,000 if they were not the bidder.) The Judge told Epic to move forward with Sunterra under the same
terms of the agreement without the stalking horse fee. So they signed with Sunterra and it is before the court
for approval. Sunterra must stick with the same due dilligence time period, which is 60 days from July 28th. Hopefully
Bluegreen, who has done a fair amount of due dilligence, will stay in the picture and be a bidder. And who will
we find behind door #3?
- YOUR COMMENTS
- August 15: --" Isn't
it interesting that Sunterra can come
up with funds needed to purchase Epic Resorts and cannot pay the past employees their awarded claims from the bankruptcy.
Buyers beware! Do you think you will be treated any differently after you purchase? I fear not! It if smells like
a skunk then it is a skunk!"
- AND: --" Sunterra
is presently a slow pay account with
many of their new vendors. They still are bleeding red ink, because of a huge administrative structure, and have
sales and marketing revenue challenges everywhere. This is mind blowing that they would be on an aquisition mode,
when they should be on a fire sale mode."
- August 16: --" Pertaining
to Epic, watch out who is behind door
number three. I have it from a good rumor source that [Flatley] is trying to buy back ...his Epic resorts by way
of hiding behind another company's name. Shame on him for burning me and a lot of my friends. Looks like we will
never see any of the thousands lost in commissions. I suppose he'll know where his next meal is coming from though."
- AND: --" King
Flatley will again ascend to the throne
of Epic....if you doubt this, you didn't pay very good attention to the little itty bitty details of the BK. agreement!
As the timeshare salesman said....." trust me on this one!"
- AND: --" Interesting
that Ken Knight, when he left Sunterra,
went to Epic Resorts and now Sunterra is bidding to buy Epic Resorts."
- August 18: --" A
former bankrupt company buying a current
bankrupt company is ironic. But given the circumstances, I'm not too surprised here. A bankruptcy will leave a
person's or busines's credit rating in the toilet. But what's really wierd after the bankruptcy is discharged,
the liabilities are virtually non-exixtant. Which is very attractive to banks that are willing to lend money. 1)
You have a company that is now fiscally very solvent (most of the former debts are history and no legal requirement
to pay back). 2) Its credit rating is in the mud. 3) This translates to a high interest rate which means large
profit. Particularly since the bank will probally borrow the money from the Fed at a very low interest rate. Sunterra
wouldn't even bother with expansion anytime soon with a high interest rate... unless they see a really good deal
for some resort properties."
Email: street@streettalkblog.com
"
There are several other statistics provided
in the most recent timeshare research that may shed some light on the net closing ratio dilemma.
- The sale of new timeshares by developers continues to decline, down a full 3% in the most recent study period
(2002).
- The purchase of timeshare resales continues to rise, up a full 3% in the most recent study period (2002).
- 27% of all timeshares acquired during the study period came from sources other than the developers.
- Of those who purchased a timeshare from the developer during the study period 32% were already owners of a
timeshare.
- Of those who purchased a timeshare resale 40.5% were already owners."
See Jerry Sikes' column this week: With Regard to Suckers
Email: street@streettalkblog.com
We want to thank you for your opinions last week on whether or not we're still
doing our job. We appreciated all of them, even the negative ones, since it helps us know what we're doing wrong
and right.
For the record, Cendant nor anyone else has bought us off or out. There is no credible offer on the table at
this time. 
Some of you seem to be laboring under the misapprehension that just because The Timeshare Beat is a news
magazine we can print anything we want with impunity. Y'all need to look up the definitions of libel, defamation
and slander, and what comprises responsible journalism (yeah, we know Street Talk is not journalism, but it still
applies).
This is how it works (and has since the beginning).
- You send in
an email (or phone call, whatever) about someone or some company, alleging any manner of wrongdoing. Your email
will put us on alert, but it's unlikely that we will print it unless it has been corroborated by other sources
saying essentially the same thing, and offering some degree of detail that convinces us the allegations have some
merit.
- If you're going to
accuse someone of sexual harrassment or embezzling or another serious offense you'd better give us some way of
substantiating it because- sorry- but your word alone won't cut it. It isn't that we don't believe you, we just
need corroboration. Imagine if someone accused you of some awful thing you didn't do. Wouldn't you like us to check
first before publishing it?
- If your allegations consist
mainly of name-calling and lack substantiation, we will not print them at all most of the time we edit out name-calling
anyway. If your message is very long, we will probably edit it to make it shorter.
- We cannot possibly print
all of the 300+ emails we receive EVERY DAY.
- Thanks for sharing
your opinion, and keep those cards and letters coming in!
Email: street@streettalkblog.com
David Siegel, of Westgate Resorts, sent a letter to The Timeshare Beat,
apparently in response to last week's The Shadow Knows newsletter (?), and asked
The Beat to print it. The Beat complied, and you will find it here: There
You Go Again: A Letter From David Siegel
- Sigh. Here we go with YOUR COMMENTS
- August 15: --" I
cannot believe that he continues to
try to make the public feel that he is a fair employer. As far as the claims that she was an independent contractor.
That is their way of getting around paying their share of taxes and benefits. And at the time they brought everyone
under employee status was due to the mass exit of talent going with Tempus and he wanted everyone signing contracts.
I am sure you will get thousands of emails from past and current employees that he owes past reserve monies and
commissions. Thank goodness for a fair judicial system and Mr. Siegel cannot stand to lose!"
- AND: --" Interesting
comment... She is a trained actress
and didn't work the next five years. Typical comment from someone that has 5 nannies to take care of his children!
June had 2 children during Siegel's DELAY tactics to keep this case dragged on. Ask any Mom if raising and taking
care of your children is NOT hard work as stated by Mr. Siegel. Mr. Siegel has attorney firms coaching all his
staff on every lawsuit. What about his settlement with Simon Feisenberger recently due to being terminated because
of refusing to contribute to Mr. Siegel's politicians. He just hates to lose and is settling more and more pending
cases!"
- AND: --" Mr.
Siegel makes some valid points regarding
the situation that we find ourselves in as employers. It is literally a minefield. I am not one of Mr Siegel's
favorite people since as a competitor he and I have exchanged volleys for years. I also do not know the merits
of this particular case. However I saw a jury at work in an employment dispute, and if you allow a case to get
in front of a jury, and you are a corporation, you will probably pay. One must be very careful how one handles
staff members. If all of us looked at our people as assets, and acted accordingly, there would be less of these
actions."
- August 16: --" Goody!
Goody! I am a salesperson ( currently
time-share ) that won a lawsuit against an employer because they did not want to pay my $50,000 bonus for performance
rendered under contract. Guess what? Two years later I won not only my 50K but the JUDGE awarded an additional
$336,000 in punitive damages!!! Moral of the story.....if you have a solid contract then pursue all that is due
you because not only do you deserve what you earned but you owe it to the perpertrators in spades! By the way the
company I worked for was a manufacturing company not time-share. Arrogance among those in Ivory towers pervails
everywhere. I gotta tell you It felt great to shove it up their @#% in the only language they understand, money.
You go girl!"
- AND: --" I
feel bad that Mr. Siegel had to pay
out half a million dollars in an employee dispute. But since he probably just used the money he has been not paying
to ex-employees in the way of reserve funds he probably didn't even notice the blip in the checking account.
As far as Disney, Marriott, Hilton, Hyatt, Four Seasons, TrendWest, Fairfield, et al. he must not be reading The
Beat too often because it doesn't appear that you pull punches on anyone. Could it be that Westgate has so much
more negative press because of the way they do business?????????? ...
If Westgate is that honorable of a company I challenge Mr. Siegel for the next week to produce the names of ex-salespeople
(that were not related to him) that received their reserves and compare that to the number of people that have
never received a dime of their reserve commissions. After being employed by Westgate for three years - I haven't
met a single salesperson that has.
Yes Mr. Siegel it is a great industry and you have done a lot to further that, but until you clean up your own
yard the negative press will probably keep on coming."
Email: street@streettalkblog.com
| IN THE WESTERN Half of the USA: |
|
CALIFORNIA:
CARLSBAD: Someone wants to convert 9 apartments at 2805 Ocean St., currently used as a hotel, to 9 timeshare
units. The name of the project is Seashore on the Sand. As of July 2003 it was still on the City of Carlsbad
pending applications list. Anyone have any more information about this little project?
INDIO: Trendwest is clearing land at the Landmark Golf Club to build
a 455-unit " not-a-timeshare" project. Details are scant at this point, but the resort appears
to be homes (?) which WorldMark members can exchange into or which can be rented out on a nightly basis. Since
it isn't technically a hotel, WorldMark is not obligated to pay the transient occupancy tax, but city fathers are
very happy that the company has agreed to do so anyway. (The city, however, will reimburse WorldMark 45
percent of the tax revenues collected for the first 10 years.) We'll tell you more about this project when we learn
more. Meanwhile, see the story in The Desert Sun: (external) This is not your typical resort
E-mail street@streettalkblog.com
COLORADO:
ASPEN: More timeshare in Aspen? Whew. Yes. The proposed Dancing Bear Lodge,
a 9-unit fractional project, narrowly won approval August 11 from the Aspen City Council. The height of the project
had caused problems, with architect David Brown going back to the drawing board several times attempting
to get it right. Most recently it was the added height of a glass gazebo on top of the 3-story lodge that troubled
the council last month. Reducing its height and setting it back 24 feet from all 4 sides of the rooftop finally
did the trick.
The project includes 9 three-bedroom suites to be sold in one-eighth shares. Two two-bedroom employee units
and a deli/coffee shop on the first floor are also planned. At the earliest, construction of the Dancing Bear could
begin next spring, depending on property owner Michael Egan’s wishes. It will replace the empty Aspen Manor,
which currently inhabits the spot.
E-mail street@streettalkblog.com
HAWAII:
KUDOS to the staffs in the Shell Vacations Hawaii region for setting an all-time regional record
during the month of July by completing over five million dollars in net sales at high closing percentages and profitable
volume per guest (VPG) rates at all three of it's Hawaii sales centers.  Read the press release here: Shell
Vacations Achieves Record Month As Hawaii Region Completes $5.38 Million in Sales
MAUI: Intrawest has purchased about 40 acres of undeveloped beachfront
land in West Maui from an affiliate of Amfac Hawaii LLC for $33 million. They have also acquired
an option to buy another 27 acres of Amfac property just north of Ka'anapali Resort. What do you suppose
they will build on this land? Will timeshare be part of it?
E-mail street@streettalkblog.com
NEVADA:
RENO: If developers get their way, a 377-home golf course development above Clear
Creek (south of Reno) will be rezoned for more. They are looking for a transfer of density from Carson Valley
to this property, which would allow them to develop 241 one-acre lots, 136 8,000-square-foot lots, 221 acres for
a golf course and 18 timeshare/guest lodges. The remaining 865 acres would be open space. The developer
is John Serpa. County commissioners are expected to take final action Sept. 4.
- UPDATE August 16: The Douglas County planning commission has recommended denial of this project.
Residents and the Washoe Tribe voiced strong opposition at the recent meeting, saying the development would lead
to increased density and traffic. The developers still have until Sept. 4 to sway the Commissioners.
LAS VEGAS: A meeting of bankrupt Mego/Leisure Industries' creditors
will be held Aug. 25 at the C. Clifton Young Federal Building in Reno, but just how many creditors are out there
and how much money they are owed by the company remains unclear. Court-appointed bankruptcy trustee C. Alan
Bentley says there are an estimated 18,000 creditors, but thousands of them are likely owed only small sums
of money. Bentley also said Leisure Industries' timeshare operations around the country would remain in business
as the bankruptcy wends its way through the courts, and he expects those properties to be sold by the end of the
year. The property division, Calvada, could take longer.
AND: Is anyone happy at Pacific Monarch's Cancun Resort (besides the salaried management
folks, that is)? We keep receiving pleas for help, such as this one: --" what
is going on at Cancun???? Mondays are
always " The Day" for sales, but can't sell them if they aren't there. Did someone (marketing) forget
to book the tours? Did the company hold off on tours for other reasons? We're starving here... help"
Rumors are running rampant in Vegas that Peter Braglia has cut off PMR from all tours. Depending on who
you talk to, two different reasons are spreading around town: l) PMR's check bounced and they fell behind
on his payments. 2) Kevin Sheehan is expanding his operation with Berkley/Cliffs and they needed more tours.
In any case the Cancun is now only operating 5 days per week and reportedly is lucky to be receiving 10/15 tours
a day.
Before Joe Hutchings hired his son to head up marketing at the Cancun, wasn't Charlie Levin just
starting to get things going in marketing? What happened to that?
Meanwhile, rumors still persist that Pacific Monarch is either being bought out or going under and that Hutchings
is feeling smug because he knows the secret. Rumors, we said. Rumors.
- YOUR COMMENTS
- August 15: --" Now
that all the qualified salespeople and
managers are gone, it's no wonder that they can't sell anything. With or without tours there's nobody left to sell
the inventory. The last really good manager to leave was Kent Bawden who is now at Club de Soleil. It seems that
if you didn't come over from Fairfield with Joe Hutchings, you just didn't fit in. We call those guys FOJ's (Friends
of Joe's).
Joe Hutchings and gang are running a whopping 500 VPG and a 5 day work week. Hopefully the agents can afford to
pay to go to work. The in-house agents seem to be the only ones to be making any money....come guys..share the
wealth..."
- AND: --" Working
in Vegas for another company, I've actually
heard the opposite recently. The word I'm getting is that tour flow is balanced and enough to get all agents out
twice a day. I've also heard that efficiencies are up and that the new team is finally making the strides they
had promised."
- August 16:
--" Here are the facts. As an example, last Friday (8/15/03) Cancun had a grand
total of 10 tours and 1 sale. WOW??? So the big question is, if Joe Hutchings and his Dream Team are so great,
then why are their numbers so BAD!!!??? (Seven months and counting.) Rumor has it that Mickey Booher would love
to replace Joe and his team. Time will tell."
- AND: --" In
defense of Pacific Monarch. I send them
tours every week 30-50 a week. They have always paid me so the rumors that checks bounced are not true. They just
have the wrong horse running the vegas resort sales. The Cancun is a beautiful place, if the right crew were to
run it."
- August 17: --" In
response to the PMR section and the
person who wrote in " Here are the facts..." . Hey brain child, the reason that Cancun only got 10 tours
on Friday is because they went to the in-house. The regular Cancun sales line is closed of Fridays!!! (beginning
this week it's Wednesday and Thursday off) Get a clue. If you are going to report " Hot News" , know what
you are talking about!!"
- August 20: --" Too
many changes at the marketing helm,
& their lack ofcommittment to control their own destiny has been the problem. In March of 2002 PM hired a consultant
to convert a lead generation operation in Barstow into an OPC location. Result: a VPG of over $1600.00 over the
next several months, compared to their overall mix of about $700. They then hired the consultant as their DOM for
Las Vegas in anticipation of acquiring the NewYork-NewYork marketing location that Consolidated won in April of
2002. The DOM gave them a solid marketing plan to open 5 company owned OPC locations. They thought the plan was
good, so they retired the new DOM so that the former lead generator/dom could run it for less money.
He could not & was replaced twice by the
time Charley showed up in August. He did open 2 of the locations, & planned his highway program for the next
6 months until Joe arrived in Feb, 03. It is difficult, but not impossible, to get a toe hold in the Las Vegas
OPC market. You cannot depend exclusively upon independant tour brokers and maintain solid VPG's, as PM is still
successfully proving. I was amazed that they did not even go after the former PEC locations.
Field of Dreams, I guess. It is arguably the
most beautiful resort in Vegas."
E-mail street@streettalkblog.com
UTAH:
PARK CITY: Westgate Resorts and Prudential Utah Real Estate have formed
a new business relationship that is based largely on raising funds for Park City area charities. The new affinity
relationship will be announced at a ceremony scheduled for 11 a.m. on August 18, 2003 at Westgate Park City
Resort & Spa.
According to Westgate CEO David Siegel, the new relationship establishes an innovative means of marketing
the resort ownership concept, with a percentage of sales revenues being earmarked for charity. The press release
about it did not detail exactly how that works, but the first contribution will be presented at the announcement
ceremony, where Siegel will present a check for $25,000 to the Park City Education Foundation. (And before
you draw conclusions, it is just a coinkydink that this announcement came at about the same time as Mr. Siegel's
letter to The Beat, mentioned near the top of this column. We aren't sucking up.)
- YOUR COMMENTS
- August 15: --" I
am not a Westgate employee, or any kind
of affiliate, but it is obvious that it is a " coinkydink" . He (Siegel) is responding to the articles
about the terminated employee. That happened to be at the same time as the affinity marketing agreement in Utah.
No sign of foul play. You have to give it up to Westgate, as there will be many more imitators of this type of
agreement to circumvent the do-not-call list (I heard DOMs around the world saying " why didn't I...). They
are innovators. If you follow the history of the Marketing side, they were the first ones to call their tour-no
buys--AND MAKE A KILLING."
- AND: --" If
King David and Westgate Resorts wants
to do something for the Orlando area, he could return the thousands of former sales reps' reserve fund accounts
he has been holding for years. That would be a major step in doing the right thing for the community!"
- August 16: --" I
am one of those apathetic people who
couldn't be bothered to go to court after writing several letters asking for an " accounting" of my reserves.
I lost 6 months worth of reserve contributions, but I got a lifetime of " David bashing" . ... I was doing
a Westgate presentation around the time the article appeared in the Orlando
Sentinel, called " Timeshare King" .
It showed the Windemere mansion. I was showing the article to this Georgian tobacco-chewing redneck as part of
the presentation. When the redneck saw the picture of the mansion, he leaned forward in the chair, pointed at the
mansion and asked, " How much for a week there?"
- August 17: --" I
have been out of the industry for over
2 years now, and I was one of those " talents" that made the move from westgate to Tempus. I was a TO
at westgate for over 2 years, I was the first TO to ever write over 7 million dollars in net business in a single
year, and I made over 200,000 my last year there. I was 23 years old when I left westgage to go to the palms as
a director of training. Personaly, I think westgate is one of the best companies to work for, I have NOTHING bad
to say about them or David for the time I worked there, they made me ALOT of money and I made them alot of money,
however, how come nobody talks about the fact that when I left TEMPUS they sued me and chased me all over Orlando
so I couldn't find employment anywhere else? I lost my cars and my house went to Foreclosure because of it, they
made my life hell, and nobody ever paid attention to that. Westgate did nothing to me other than train me, and
pay me. if I went back to the industry they would me a choice for me."
- August 19: --" It
truly seems that Street Talk loves to
give readers the opportunity to take a few jabs at David Siegel. After reading his letter I do not understand why
you would not think he is just in feeling there are two sides to the story? Since court cases dealing with wrongful
termination, especially of female employees, is much like a divorce court show me ten men that think they got a
fair day in court!
I have been reading The Timeshare Beat, Inc. for over three years now and find a familiar tone with many of the
negative comments. For the most part the negative comments come from people that didn't make it at a certain resort
or in the industry at all. They should read Rod's column on burn out.
In Orlando many if not most of the reps have been at Westgate. Many of Orlando's top sellers started at Westgate.
Having worked at Westgate insures you will find a job should you leave. The reserve fund issue is one small part
of the entire experience. For as many people that have complained about the issue there are more that have had
no problems with it. I received all of my unpaid commissions and reserves. Yes, I have the paperwork to prove it.
Sales at any resort is one division of its labor pool. As David Siegel mentioned in his letter, Westgate provides
for its employees. The Orlando Sentinel named them in their top 100 companies to work for! When you have as many
employees as Westgate does you are bound to have situations. Today's Human Resources managers are constantly doing
battle over firing issues. When it comes to sales, hey, it is just that aggressive cocky attitude that got you
hired to begin with.
As a last note, this is America and the freedom it gives us allows both the freedom to run your business with a
heavy controlling hand and the freedom to litigate against your employer if you feel wronged. Everyone that complains
should read Rod's column and determine the real reason they are complaining, then they could actually improve their
life! That would be another article altogether."
E-mail street@streettalkblog.com
WASHINGTON:
We hear this over and over again from many many sources, so there must be something to
it. Who exactly is in charge of Trendwest's marketing anyway?
- --" When will Trendwest wake up and
smell the coffee? They are such a great
company with so much credibility, yet they have a name for the worst marketing in the industry. My god, it is enough
to make a grown man cry. This is no exagerration. Trendwest will tour anyone who breaths. Go to any Trendwest sales
office and see for yourself. Tours come in daily that are unemployed, students, married people without their spouses,
minimum wage people and yes, even homeless. Personally, I have just about had it. I will say this for Trendwest,
they are the kings of pending business, because all they know how to get into their offices is pender-quality tours."
- YOUR COMMENTS
- August 15: --" Does
the name Cendant/Fairfield ring a bell?
There are several head marketing cheeses with Fairfield that consistently appear at Trendwest resorts for marketing
meetings. Call me silly but it seems plausible that they've thrown all their marbles into a community bucket. The
tours at Fairfield aren't any better than what you describe as your bread and butter clients at Trendwest. Under
Cendant NQ stands for No Qualification."
- AND: --" I
am very confused. If the tour quality
is so bad, why would the company continue to generate expense and undermine their earnings by providing absolute
garbage to their sales line? As far as the homeless note goes, how on earth would a homeless person be invited?
Did he find a mailpiece just wafting down skid row? Perhaps he was solicited via his homeless cel phone? Odds are
a million to one that the tour quality accusations are being made by some no-closing sales person."
- AND:
--" You are not confused, you just don't
know the corporate philosophy concerning
tours and when they do business. Of course the Fairfield Mktg. and Sales Execs would love to see someone purchase
on their initial visit, but all is not lost if they don't. They believe strongly that they will purchase on their
second and third visits or anytime in the future. Give a guest information and time to get past their financial
problems and they will come back to any one of Fairfield's resorts in the future and purchase. They don't care
which coast the guest ends up on or where they purchase, but believe strongly in " be backs" . This line
of thinking doesn't sit well with sales people who naturally have the instant gratification thinking of making
money for their families every day that they go to work. Then again, Fairfield is not in business to please the
hard working sales reps. By the way, every time someone writes in to this forum of expression with something they
have to say does not mean that they are a no-closing sales person."
- AND: --" I
am not a no closing sales rep and I
also have BIG problems with over HALF of my Fairfield tours - divorcing one legs, just checked out and were promised
gas money home, not yet checked in and promised tour tickets etc... Fairfield does not care they NEVER NQ - tough
luck for us!"
- AND: --" I
work for Fairfield... and here's what
I've noticed about the tours. We can not NQ prospects however, all in all, our tours are pretty decent. Of course
we don't like 1 leggers (without spouse) or in villas where we have to go to the guest's room. Guests of owners
should be income qualified shouldn't they? However having been forced to take the more challenging prospects, some
of us do sell them. Unfortunately huh? Bottom line we ALL have to take the bad with the good. That's timeshare
guys, someones getting paid something for those questionable prospects aren't they?"
- AND: --" In
a profit conscious business world you
would assume that if you OWNED the marketing company then you would work hand in hand and have the same goal, the
bottom line, PROFIT. But I have worked for Fairfield for over 8 years and am amazed that this common sense practice
is the opposite when it comes to Fairfield marketing. They can send any type of tour they feel. Why? Because like
most companies, they are concerned on quality and APG. But not Fairfield, their marketing group are paid on arrivals
and all tours are charged to the site. No NQ's! Certs are given to anyone that can travel with no restrictions
or requirements and the sales sites can pay up to $160 for such arrival plus accommodations expense. Why would
they care, they aren't paid on APG? Our site get tours claiming to be referrals that our owners that just stayed
on their week, people that just toured that week at 2 other Fairfield sites. Some of these tours cost our site
up to $400 per tour, so I blame the system. We all thought that Cendant will come in and save the day, but all
we get is pay, pay, pay and why aren't you selling, selling, selling. Now we have to cut costs, where? In sales
and don't dare to try to not pay Fairfield marketing for their wonderful $400 unqualified tours. Cendant does this
all make sense to you???"
- August 17: --" What
difference does it make if 9 out of
10 non buyers are qualified or not?"
- AND: --" it
seems the bottom line on all this is
simple. all sales staff is on commision, therefore basically no cost other than if a sale is made. therefore the
issue is what is the ratio of cost per tour vs sales percentage. pay more/close higher? pay less, retour over and
over/close lower? at some point there is a cost effectiveness ratio that works for the developer. will it be the
one that pleases the sales staff, probably not. the truth is that retours do close higher, closing 10% at a cost
of $150 per tour may work better than closing 13% at a cost of $500 per.... doesn't mean the sales rep makes more.
where else in sales can you just show up and have prospects brought to you every day and get the commisions we
do. i do very well in the current trendwest system, would i like to see nothing but well qualified tours, sure,
but thats why i work my owner base."
- August 18: --" Wake
up guys, where have you been. Marketing
in Fairfield has always been a joke. Some how, some way the company is making money for the pockets that counts,
even with the poor excuse " marketing" . You can be sure they know every detail in the high ranks and they
like it the way it ts. As long as the high ups get their share that all that counts. Can you tell I worked for
this company for tooooo long."
- August 21: --" There
are no NQ's to over-nights. When it
comes to OPC's there are no singles, regardless of income. Tours cannot live within 100 miles of the resort, although
over-nights can live in the next county. OPC tours cost $250 per tour and over-nights $450. Wake up Cendant, ...Cendant
has its own Enron Fairfield executives."
E-mail street@streettalkblog.com
|
| IN THE EASTERN Half & Midwest of the USA: |
|
FLORIDA:
VERO BEACH: Did you know that Vero Beach allows no more than three-story
structures, and a ban on new timeshare construction has been instituted? Seems they don't want their little community
to end up looking like some of their neighbors to the south. RCI has 2 resorts in Vero Beach: Driftwood
Inn Resort and The Ocean Reef Resort (dual affiliated with II). Interval International has Disney's
Vero Beach Resort. Only 3 timeshare resorts in this lovely little town. How's the exchange value?
- YOUR COMMENTS
- August 15: --" Absolutely
awesome, considering the supply and
demand value with hundreds of timeshare resorts surrounding it."
E-mail street@streettalkblog.com
GEORGIA:
LAKE BURTON: Charles Buckley and his son Chris (Buckley Land Development Partners
LLC), in partnership with Jim Cowart Development, are building a 15-home fractional development on 6.5
acres in Cherokee Cove on Lake Burton. Located in the mountains of northeast Georgia, the project is called The
Seasons of Lake Burton and is being sold in 1/12 shares. The homes have brick-and-stone exteriors, cement-board
shingles, stone fireplaces, vaulted great rooms, three bedrooms, and front and back porches. Each house has 12
lockers in the basement for the storage of big items. Shares cost $65,000 for a 1,700-square-foot plan and $80,000
for 2,000 square feet. Maintenance fees are $2,500 annually for each share. Beginning Sept. 1, prices will rise
to $75,000 and $90,000.
About half the shares in the first two houses, which are nearly completed, are under contract. Construction on
the next two will begin in September. It is being marketed by Buckley Land Development Partners, LLC.
E-mail street@streettalkblog.com
MISSOURI:
BRANSON: We hear GrandCrowne Resorts (aka Surrey) posted their best month
in sales ever last month, with $3.5 million in timeshare sales and $1.5 million in travel club sales. KUDOS
to the whole staff!
On the other hand, not everyone at Surrey is happy. Take this complaint, for instance:
- --" Once again the Surrey holds its employees hostage. Jeff Mintjal gets his salary
doubled while all OPCs have had their $8.00 per hour jobs shredded to $0 per hour. Commission only. C.J. Perme
has apparently lost his sense of decency and reality. This is one of the most back-biting oraganizations in the
indusrty. Apparently they like the Attorney General of Missouri continaully investigating the operation here in
Branson. They will eventually have to come to judgement."
Seems as though if sales had such a great month the OPCs must be doing a good job. So what's up?
E-mail street@streettalkblog.com
SOUTH CAROLINA:
MYRTLE BEACH: Anyone heard anything about the dreaded Nigel Russell lately?
For anyone unfamiliar with the case, Russell was charged in a 2-count Federal indictment on Feb. 25, 2003 with
possession of firearms and ammunition while an alien in the United States under a nonimmigrant visa and making
a false statement in a passport application. He was originally arrested on Feb. 8 on charges of identity theft you will find more details here: http://www.thetimesharebeat.com/street/nigel.htm)
Having copped a plea some weeks ago, is he still in jail? Been deported? Been released? Anyone know?
E-mail street@streettalkblog.com
|
| Rumors Rumors Who's Got the Rumors? |
- Is there any truth to the rumor that Starwood VO's Westin Maui is on
track to do $130 million this year?
- YOUR COMMENTS:
- August 17: --" Inside
sources seem to agree, $130,000,000
is a real number for Starwood in Maui. And to top it off, efficiencies are well over $10,000."
- AND: --" According
to an internal company letter from Starwood
the answer is yes. Hawaii Rocks!"
- August 18: --" Is
Starwood Maui able to book that volume
or do they have to wait for condominiums to get certificate of occupancy? That could be while, being they are selling
2006 occupancy."
- Is there any truth to the rumor that Marriott is looking at Napa,
Monterey and San Diego in California and San Antonio in Texas as locations for new resorts?
E-mail street@streettalkblog.com
|
| Quotable quotes: " A positive attitude may not solve all your problems, but it will annoy enough
people to make it worth the effort." —Herm Albright
(1876 - 1944 |
| International: |
- CANADA: Starpoint Resort Club in Vancouver gets a name change rather
than fight Starwood Hotels & Resorts in court...
- THE UK & EUROPE: Diamond Vacation Club has been rolled up. Marriott
has opened their 3rd property in Spain. And is Hapimag's New York property up for sale or what?
- AUSTRALIA: The Accor Première Vacation Club (APVC) has just
announced a new sales record for July 2003.
- MEXICO: Even the acclaimed Royal Resorts (and Interval International)
are not immune to complaints... AND, does Avalon Resorts really have properties in progress and near
completetion in Puerto Vallarta, Cabo San Lucas, Jamaica, and Cuba?
READ MORE in Street Talk International (Last Updated
August 15)
|
| Idle Thoughts: |
- Now being in our 5th year of publication, we can assert with confidence that the #1
complaint we hear from you sales folks is about marketing. Either not enough tours, or tours that are junk--
or even worse, a combination of those two things. Doesn't matter if you work for a big company or a small company,
the complaints are the same. Are increasing competition and a lack of creativity to blame?
- YOUR COMMENTS
- August 15: --" You
state that the # 1 complaint received
over the last 5 years is marketing related. I guess that there's no chance that the sales teams who make these
accusations will never accept that they can fix some of their own problems. We are the ONLY industry in which sales
people do not have to find their own customers. Instead, we just sit back and bitch and moan about quality. With
the advent of national " do not call" , anyone wanna bet that this is going to change. Sales, get ready..money's
down that you will soon be required to augment the company sponsored garbage that you complain about. Now let the
real complaining begin!"
- August 18: --" I'm
chiming in with the above comment. Sales
people in this business must get a grip and realize what's going on. These projects are not there for them, but
for the developers, investors and the owners. You are just a tool for the investors to make the big ones. If you're
smart, you'll realize if you aren't being used, you're no use to anyone. Like above...what business can you have
your prospects delivered to you? Oh yes, you could be working at Penny's making pennies. Quit acting like a bunch
of chirping baby birds looking for mama marketing bird to bring the perfectly pre-chewed worm she caught and spit-up
in your face. Don't you have an idea of how much competition there is for that guest's time and money? They didn't
wake up today all excited about seeing you. If we can't give them something of value, you won't get their time.So
stop complaining about them coming out for something. The only ones that come to see your pretty face without marketing
lining them up for you are the ones you generate yourself. I know you're smart enough to count those - right? Have
you got the guts to pick up a phone and bring one in, or drag one over from the bar you spent your last commission
in last night? And if you can't get them to buy, sorry but you didn't create enough value to overcome the competition
for those dollars. You should be happy if you work at one of those top companies where you're required to bring
in a certain amount on your own. It's a skill you can't survive without... unless you like drinking tear-filled
brew. If you haven't figured it out yet, you are on an assembly line. Others do their part, and you get to do yours.
You are always welcome to try to move positions. Until you do, just be the tool you are and let the others be the
tool they are and quit complaining about their work. Most of them are doing the best job they can. And read Wealth of Nations by Adam Smith if you don't understand capitalism."
- August 20:
--" I just HAVE to respond to the
comments about marketing under Idle Thoughts. It sure sounds to me like both comments came from the same person.
Probably a 'marketing type' who has never hauled a tour in their life. They would have to 'chime in' to toot their
own horn. I have been in the industry for over 20 years and marketing has always been about 'tricking' customers
in to a presentation. From the old 'diamond' pendants, Faux Furs, Bentley Clocks and 20 piece (fold up plastic)
luggage sets to today's fantastic vacation package bargain + tickets. Marketing seized on the sales mentality that
an 'up is an up' and has held that to the heads of VP's and developers ever since. They are quick to say " You
can't blame it on the tours, or you are WEAK." This has given them the excuse to pad their pockets with greater
shares of the sales revenues while sending nothing but quantity through the doors. I AM a top closer and I don't
feel that MARKETING should be my job too, unless of course you want to pay me for anything I TOUR whether I close
it or not, isn't that your deal? As management, I want my closers spending MORE time in front of qualified tours,
NOT on the phone trying to create them. And, by the way, you ignorant ass, there in fact are MANY industries that
provide qualified leads to their sales reps. Seems to me that it was the Cadillac DEALERSHIP that spent advertising
dollars to get me to walk in and buy my third car from their sales rep. He did a great job, I will probably buy
more from him. You don't have a clue, you just want to sit around and play the blame game because some developer
or VP is probably on your ass about getting a better tour through the door. IF you think that marketing is doing
their job by encouraging people to lie about their marital status, income requirements, age, or relationship to
each other and to NOT BUY so they can send them to another presentation then you are so full of shit that I don't
know how you can stand your own smell. The kind of marketing done now is on its way out. This has given rise to
the increase in internet sales, re-sales and before too long Timeshare will finally grow up and put their marketing
money into typical advertising (like many of the BIG NAMES you mentioned) and simply walk away from the REAL problem
with the timeshare image and the reason why high pressure tactics are employed, BECAUSE THE MARKETING COMPANY THINKS
THAT ANY BODY WILL DO. Of course, the developers and VP's need to have the backbone to stand up and face this problem
and not let marketing managers back them down with their HOLY words " Never blame it on the customer, AN UP
IS AN UP." As long as the company continues to profit from the marketing contract, they seem to be blind to
the falling VPG's, rising recissions, and sales professional's attrition. So far, I have seen that most sales operations
simply keep hiring, firing, training and draining the business of super professional closers rather than lay the
blame where it belongs and fix it, once and for all. As a sales person, every time I took a tour, my first duty
was to divorce myself from marketing and the bulls--t scam and fraudulent promises they made before I could start
my tour. Not much is changed in 20 years although I think it is so pitiful that developers and VP's let marketing
talk them into GIVING away THEIR product (vacation packages at resorts with amenities) as the gift so that marketing
gets paid to get bankrupt, poverty stricken, credit rejects Johnny Lunchbuckets who couldn't afford to go on vacation
otherwise much less BUY something, to go on presentations. So marketing doesn't have to find some cheap piece of
crap trinket to give away. And now, of course you want sales people to generate their OWN tours, let me guess,
you will still get paid for booking them through your call center or 800 number, right? You think I am a chirping
baby bird? Your day will come, you are gonna get your asses kicked right out of the business. Then again, maybe
the developers and VP's ARE stupid enough to think that they don't need sales closers, just a good presentation
book, an unemployed housewife, and a really good purchase incentive to sell $15,000 - $60,000 timeshares in competition
with re-sales. Who by the way ARE utilizing other marketing means, and ARE taking their business away!
One more thought, especially for the VP's and
developers, when almost EVERYONE is complaining about the same thing, there just might be a reason. Smart management
would take a look at what is being said and fix it, address it rather than ignore it. If marketing is telling you
that you have to choose between Quantity or Quality and that they can't get you REAL $75,000-$150,000 incomes and
meet the demographics that your own research (Ragatz, RCI, II) tells you IS buying your product, then you need
better marketing, PERIOD. What would you say to the closer that comes to you and says: " Look, I can get $20,000 - $30,000 deals out this floor,
but you don't pay me enough. Kick in a couple of bonus packages, a few options, some SPIFF money to throw around
and THEN I will pull that for you. Otherwise, you should face the facts that I am going to pull less deals for
you." Don't tell me you wouldn't
choke! So you let marketing tell you that? Seems to me most great developers, contributors to this industry's growth
over 30 years, CEO's and directors come from SALES backgrounds. Well listen up, those marketing 'guys' are choking
your sales force and you are letting them get away with it. Isn't there ANY marketing company that can reach the
70% that don't own timeshare but have expressed an interest AND fit the demographic financially? Your research
has found you the UP, so marketing prove that YOU can deliver, or shut the hell up."
- The Washington-based American Teleservices Association has said that the new National
Do Not Call list will mean the end of 2 million jobs nationwide and the crippling of a $660 billion industry.
With that in mind, the ATA filed for a temporary stay against the FTC last month in the U.S. Court of Appeals 10th
Circuit in Denver. At press time no decision by the Court had been made.
How strongly do Americans feel about this issue? In a column in The Sun News, Celia Rivenbark says: " Although
there is some concern that the new do-not-call laws will put many thousands of telemarketers out of a job, I think
I speak for many millions of Americans when I say, " So?" You can read the whole column, which mentions
a timeshare telemarketer for a Williamsburg resort, here: (external) Do-not-call lists bring needed quiet
- Steve Nelson, an akamai (that means " smart" ) timeshare owner of long
standing, has written a fun little song about timeshare ownership that we got a good smile out of. He has graciously
allowed us to link to it so that you can enjoy it, too. Titled " Thank God I'm a Timeshare Guy" ,
sing it to the tune of John Denver's " Thank God I'm a Country Boy" . Click here to sing along:
http://home.comcast.net/~noslensj/timeshare_guy.htm
(Mahalo, Steve. We are always in sore need of a smile.)
- We think we've got the situation with American Resorts International and Oyster Bay
Beach Resort sorted out at last. American Resorts International's (" ARI" ) subsidiary or affiliate,
Oyster Bay Club NV, used to be the developer of Oyster Bay Beach Resort and was selling timeshare interests
in Oyster Bay Beach Resort. ARI (or what's left of it) also has another timeshare product known as ARI's Holiday
Network that conveys to consumers a membership interest in the Holiday Network Vacation Club (their points-based
club).
- Pearl Development N.V. acquired ownership of Oyster Bay Beach Resort at a public auction in April, 2003,
as we reported at the time. All purchasers (in good standing) of a timeshare interest in Oyster Bay Beach Resort
from ARI's affiliate, Oyster Bay Club, NV, continue to enjoy their rights to the use of Oyster Bay Beach Resort
with Pearl, as the new owner.
HOWEVER, those purchasers of memberships in ARI'S Holiday Network did not have any ownership interest in
Oyster Bay Beach Resort. Accordingly, when Oyster Bay Club NV ceased to own the Resort, the members in Holiday
Network no longer had the right to have a direct exchange into Oyster Bay Beach Resort. It is our understanding
that those members of Holiday Network that belong to Interval International can still use their membership
in Interval International to exchange into Oyster Bay Beach Resort in accordance with II's exchange rules and policies.
Now then: Does ARI have any resorts left in their network besides a couple of Austrian properties?
- YOUR COMMENTS
- August 15: --" Doesn't
ARI have resorts in Antigua and Naples,
Florida?"
- August 16: --" Are
they still selling anything? anywhere?
What has happened to the owners of ARI? Is there any pending lawsuits?"
- August 19: --" I'm
looking for some help or information.
I have been trying to contact American Resorts International (ARI's Holiday network), and every phone number I
have called says that the number is no longer in service. Every number I have tried refers me to a 630-239-3000
number and is not in service. Does anyone know if this company still exists? Any idea where I go to get information?
Any info you van give me would be much appreciated."
E-mail street@streettalkblog.com
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