|
 STREET TALK:
Week of March 12 - March 18, 2004
" The theory of a free press
is that truth will emerge from free discussion, not that it will be presented perfectly and instantly in any one
account." -- Walter Lippmann
Street Talk is a compendium of tips, facts, gossip,
rumors, speculation and editorial comment.
PUBLISHED ON FRIDAY
E-mail: news@thetimesharebeat.com |
Email: street@streettalkblog.com
 The
Timeshare Beat wishes to extend its
deepest sympathy to the victims of the
deadly terrorist attacks in Spain on March 11,
and to their families, and to the nation. |
Cendant's
TripRewards is the world's largest loyalty program,
based on the number of participating hotels. The Beat ran a press release about TripRewards as the lead timeshare
news story on Monday, March 8, but if you don't pay attention to the news you might have missed it (World's Largest Hotel Loyalty Program
Launched by Cendant ).
Down towards the bottom of the press release it said this:
" In addition to the 1.7 million original TripRewards members
who have been converted from existing Cendant lodging loyalty programs, Cendant's two vacation ownership brands,
Fairfield® Resorts and Trendwest® Resorts, will begin introducing time-share owners to the program later
this year. Cendant is the largest vacation ownership company in the world with more than 700,000 owner families
and more than 110 resorts among its two brands." (Did you notice that the biggest timeshare company in the
world- Cendant- spelled timeshare wrong?)
Anyhow, what do you think this means to their owner inventory?
What do you think it might mean to RCI members in general?
Email: street@streettalkblog.com
Crown Global Vacation Club, in St. Thomas USVI:
Read about it in Street Talk
Intl. and
then tell us how stupid YOU think we are... Grrrrrr.
Email: street@streettalkblog.com
|
IN THE WESTERN Half of the USA:
|
ARIZONA:
SCOTTSDALE: Here's an intriguing
note (heads up?), concerning Starwood's Sheraton Desert
Oasis Resort: --" ...The reason I am writing looking for help is that my immediate supervisors will not do anything to correct the problems
and will be upset if I complain to anyone higher up. I am hoping you print this so someone higher up will read
it and do something. Last year we had a lot of changes. We lost VPs, PD and sales people but we hung in and did
our best. Since January everything is going down hill and no one cares. It seems as if The Westin Kierland in Scottsdale
is the only thing that matters. We have no one in charge at Desert Oasis and the tour and sales numbers show it.
I'm guessing they are closing my resort soon but won't tell anyone. Have you heard anything? I feel as if I should
be looking for a new job."
So what the heck is going on at the Desert Oasis? And who is
going to be blamed for writing to us...?
- YOUR COMMENTS:
- March 12: --" Yes
the higher ups will read your message
and no, they won't do anything about it. Time to polish up the ol' resume. If they haven't offered you a position
at the Westin Kierland Resort (either onsite or offsite) to shore up the revolving door of sales personnel, then
they don't want you around. Ouch, but the truth hurts."
- March 13: --" I
have to respond to the ongoing rumors
that always seem to present themselves at the Sheraton Desert Oasis. No one is telling you that the Sheraton Desert
Oasis is going to close because it is not. Tour flow and sales are down because there are only 10 (day line) agents
on the line taking tours. The inhouse team at the Sheraton is going as strong as it ever has been. The rumors that
you are hearing are coming from unhappy agents that are not writing business, but as we all know that it is never
the agents fault that they are not writing. Also, these rumors are created by having 5 or 6 competing properties
that are looking to steal agents from each other. In all life people move on and change and how we deal with it
affects the ability to take on change and grow with it. Yes, Westin on site and the gallery are going into full
swing in a couple weeks and there will be agents moving over from both lines to handle the tours at those sites.
Here is the question " would you close down a property that just spent $500,000.00 for remodeling" ? You
and I both know that the answer to that it " NO" !!!!!!"
- AND: --" If
this is true about the sales staff from
both lines moving over to Westin in a couple of weeks when will the agents making the move over be informed, two
weeks is just around the corner or is it true that if you have not been asked to go, get the resume dusted off.
Also through the grapevine there were 24 agents working on the sales line on Saturday and there were not enough
tours to go around. What can you really believe, I thought this was Starwood, 2700 VPG over here and we have all
your tours, the cowboys come through again, and we could use a few good agents over here."
- AND: --" Why
are there two different sales presentations
for the Westin and Sheraton if they both are Starwood products. Westin is running over 8000 VPG and over 50% close
when Sheraton is at 1500 VPG and 13% close. Is it the tours that the Sheraton is getting or that the sales agents
are so much better over at the Westin? Or is it that the Westin is Starwood and the Sheraton is still Vistana and
the Embassy, looks like someone higher up might check out what is really going on and see why there is so much
difference when two resorts are really selling the same product. Rumors have it that HUGE changes are coming soon.
Good luck to our friends who are still left over there next door."
- March 14: --" If
I had spent $500,000 remodeling a sales
center I would have more than 10 agents taking tours. What is down, the tour flow or the number of Sales Agents
who want to work there? How many of the ten will be left after they have moved over to the two new sites? Your
comment about 5 or 6 competing properties trying to steal agents from each other is silly at best. Everyone knows
if an agent is happy and being treated well they will not leave to go anywhere else. Please do not try to pin your
recruiting tactics on everyone else!! By the way, when will Arizona do the same as Colorado and no longer need
the Verification department? With only 10 sales people what's the point?"
- March 15: --" I'm
confused when it comes to " stealing agents."
Is it truly stealing when they beat a path to your door? The only people attempting to steal agents is the Sheraton
Desert Oasis " management team" , who continually call our agents with false promises in a pathetic attempt
to lure them back. Fortunately all attempts have failed. If you treat your agents like people and not numbers you
will create loyalty. It's obvious that is lacking at Sheraton Desert Oasis."
PHOENIX: ILX Resorts has agreed
in principle to acquire 988 two-bedroom intervals (19 units) and available land for a minimum of an additional
20 units (1,040 intervals) at Rancho Manana Resort and has acquired 150 timeshare intervals (two- and three-bedroom units)
at the Scottsdale Camelback Resort. The company anticipates annexing these properties to Premiere Vacation Club
in the second quarter 2004. They also intend to commence the construction of 20 more units at Rancho Manana in
2004. Getting bigger.
PEORIA: Cibola Vista Resort and Spa
broke another record in February with a VPG of $2700. Again, with no in-house or referral programs. Just old fashioned
OPC and Telemarketing. KUDOS! 
E-mail street@streettalkblog.com
CALIFORNIA:
SEASIDE: Tucson real estate giants
Donald Diamond and Donald Pitt, under the title Seaside
Resort Development, have resumed negotiations with the
city to build a resort hotel, timeshares and residential units on the city-owned Bayonet & Blackhorse golf
courses.
The city had been negotiating with Seaside Resort Development since 2000, but a nasty lawsuit filed against the
developers and the operators of the golf course, BSL Golf Inc., in 2002 put negotiations on hold. The suit was
settled recently, and talks have now resumed. The parties have set Sept. 30 as the final date, after which either
side can walk away without penalty.
We hope a new timeshare resort makes it through the maze. Wouldn't
it be nice to have more timeshare in that area?
PALM SPRINGS: If you take look
at the volume sold by Marriott and Starwood in the Desert, an at-first-glance oddity appears.
Starwood's Westin Mission Hills property and Marriott's
Shadow Ridge have been selling for about the same length
of time but Starwood only has just over 150 villas to sell and Marriott will have over 950 villas. In the same
time frame Marriott has already sold out 256 villas-- almost more timeshare villas than Starwood can even build
at Westin Mission Hills. So if they are selling at a similar pace where is Starwood's inventory coming from?
E-mail street@streettalkblog.com
HAWAII:
•
According
to an article in the Honolulu Star-Bulletin, Maui-based helicopter company Aris
Inc. plans to launch a fractional airplane program it
hopes will attract travelers who are looking for faster and more convenient interisland air service.
Aris Inc., which runs Air Maui Helicopters, formed a separate company called Air
Partners Hawaii for the venture. It plans to charge
$33,000 each to 10 buyers for an ownership share in its first Aero Commander 500 twin engine executive aircraft.
It's an interesting idea for the islands. Read the story at Interisland time-share air service seeks travelers
•
Going
UPPPP... According to a report released March 9 by the state Department of Business, Economic Development and Tourism,
the total number of timeshares on the islands has increased 4.5 percent, and most timeshare units were crosslisted
as condominium hotels. Local attorney Mitch Imanaka, who chairs the Hawaii
chapter of ARDA, says he expects continued robust growth
in the market, and he's a pretty akamai man.
On Oahu, at the Ko Olina Resort, Intrawest and Ritz-Carlton
will be join the fray soon. Who will be the next big timeshare company to show up in the islands? Bluegreen? Hyatt?
Westgate? Or???
E-mail street@streettalkblog.com
NEVADA:
LAS VEGAS: The 25-acre site at
the far-south end of the Las Vegas Strip that was the location of the Vacation
Village casino is going to be redeveloped. Timeshare
was once permitted for the site, but there is no indication at this time that developer Turnberry Associates
has any plans to go forward with that.
Instead, Turnberry Associates plans to use the site, along with 75 acres of adjoining property, to build a $300
million entertainment complex, with a 20-screen theater, restaurant row and farmers market, among other venues.
The 1.5 million-square-foot complex is scheduled for completion by late summer 2005.
The project joins several others, including a casino called Southcoast and major upgrades at the existing Silverton
casino, planned for the far-south side of Las Vegas.
LAUGHLIN: A use permit request
for the future Emerald River project has been postponed again by the Laughlin Town Advisory Board so the
the Colorado River Commission can study any possible impact to land access on the site. The CRC controls 110 in
the eastern portion of the Emerald River property that is currently bordered by the golf course.
Jim Shaw,
representative of Emerald River Realty, has presented a proposed master concept plan that would include a hotel/casino
resort, a retail commercial development, five townhouse developments, three condominium/timeshare developments,
a marina and a golf course with a clubhouse on 275 acres of land along Casino Drive.
Since the LTAB is only an advisory group for Clark County, the use permit request will still be heard by the county
Planning Commission on March 18. The Planning Commission also received the postponement request from the CRC and
could decide to either honor the extension or approve the permit and pass it along to the Clark County Board of
Commissioners.
Timeshare at last coming to Laughlin?
E-mail street@streettalkblog.com
|
EASTERN HALF & MIDWEST USA
|
FLORIDA:
ORLANDO:
•
Rumor
has it that Hilton's
largest single sale went down at the HGVC on International
Drive. The sale was 8
Platinum Weeks and was sold by Robert Erskine. Good
selling to that rep! Kudos!!
•
Celebrity Resorts,
which recently bought the management rights and unsold inventory for six properties from Las Vegas-based Leisure Resorts,
is looking for more deals. (They currently have a total of 9 properties.)
Originally known as Resort World,the company has also leased space on the sixth floor of a new office building
near the Mall at Millenia for their new headquarters.
Privately-held Celebrity Resorts is an " all in the family" kind of company, with a long history. It is
owned by CEO Jared Meyers'
father, retired dentist Neil Meyers, and the general counsel is one of Jared's uncles. Another uncle is Hillie Meyers,
who owns and operates Star Island Resort in Kissimmee, originally part of the Resort World group.
The family got into the timeshare business in the 1970s in the
Caribbean and then in the Orlando area in the 1980s, when Resort World was one of four main players in the region.
The other 3 players were Orange Lake Country Club, Westgate
Resorts and Vistana (now Starwood), all of which have
grown over the years.
Resort World, however, sold off much of its holdings to Sunterra and
kind of faded into the background. Last year differences of opinion over the direction of the company caused a
split in the family and Resort World rebranded itself as Celebrity Resorts and started to grow again.
Veteran industry executives have been brought on board, such as Chuck
Rybos, a former Marriott Vacation Club financial officer
who is now the chief financial officer for Celebrity Resorts, and Ron
Leventhal, a former senior executive familiar to many
of you from his former associations with Westgate Resorts and Tempus Resorts, who is chief strategic officer in
charge of looking for new acquisitions. Chief operating officer is C.
Craig Lewis.
They've got big plans and are on the march. Keep an eye on Celebrity Resorts.
E-mail street@streettalkblog.com
MISSOURI:
KANSAS CITY / BRANSON: Johnson County
prosecutors in late February were given the right to
collect $822,737 against marketers of a vacation club that allegedly bilked consumers. Prosecutors were granted
a default judgment against Travel Service Network Inc.
and Grand Vacations International Inc. after attorneys
for TSN and the vacation club failed to show up for a court hearing.
And last August, Missouri
Attorney General Jay Nixon filed a lawsuit in Taney County
Circuit Court against Grand Vacations, which was selling travel and resort memberships out of an office in Branson.
Nixon says Grand Vacations International Inc. was greatly misrepresenting the benefits of memberships it sold in
the Travel Service Network (TSN) that could cost consumers as much as $7,000. Grand Vacations’ Branson office is/was
located at 1440 State Hwy. 248, Suite Q.
Grand Vacations International Inc. is a Texas corporation, not
in good standing, registered to Michael Hayes. Their Missouri corporation has been dissolved. However, Grand Vacations Inc.,
a Missouri corporation registered to Gene Gale at the same address, is still in business. Same company, different name?
Travel Service Network is, of course, Beth Valente's increasingly
infamous company in Batavia, Illinois. Lie down with dogs, Beth, and you'll wake up with fleas...
•
Also in Branson,
we hear that Mark Kunsman
of Fairfield Resorts
fame has quit the company after many years to take a position with Surrey
Vacation Club. Mark Kunzman was the trainer at the Branson
resorts for years, and during his training of new hires we are told he would comment that the only place NOT to
work would be Surrey Resorts... Assuming it's all true, is this a sign that Surrey wants to become a reputable
company at last? Is his wife, T.K. (Armstrong) Kunsman, still Director of Sales for the front line at Fairfield Meadows?
•
Meanwhile,
Missouri is finally
going to regulate vacation/travel clubs. Here is a summary of Bill SCS/SB 1034, which will go into effect August
28, 2004.
" This act regulates the business practice of travel clubs and vacation clubs (herein after " club" ).
The club must register to do business or possess a fictitious name in accordance with existing state law.
" Before contracting with citizens of this state, the club shall file and maintain a bond with the Attorney
General's office. The Attorney General shall set the bond or letter of credit amount by rule. Until the Attorney
General's Office promulgates a rule, the amount of the bond is $50,000. The bond or letter of credit shall be in
favor of any private client injured by a violation of the terms of this act. In lieu of a bond or letter of credit,
a club must annually provide proof to the Attorney General that the company has insurance against nonperformance
in an amount equal to what bonds have been issued.
" The act also permits a purchaser to rescind the contract with the travel club within seven days. Notice to
rescind does not need to take special form and is effective upon mailing
" The act also requires that a seller provide a confirmation number to a buyer within five days."
E-mail street@streettalkblog.com
OHIO:
PORT CLINTON -- The municipal
court judge has asked county commissioners to fund construction of an annex courtroom, emphasizing the need in
anticipation of a slew of lawsuits related to Erie Islands
Resort and Marina.
There are at least 800 additional small claims cases expected to be filed by Erie Islands this summer, most of
them resulting from timeshare owners who have defaulted on their maintenance fees. It's too much for the regular
courtroom to handle. Yikes, that's a lot of defaults...
E-mail street@streettalkblog.com
SOUTH CAROLINA:
HILTON HEAD: As we all know, Spinnaker Resorts,
er, allegedly kind of failed to make good on monies owed to sales reps a couple of years ago. So, according to
our sources, in order to keep good reps Ken Taylor proceeded to pay 13% per deal with no hold back on pay, no reserve,
and no waiting 30 days for bonus on previous month etc... As time went by, with the sales reps apparently sleeping
at the wheel, the commission structure has slowly returned to where it once was " in the beginning" . We
are also told that Shawn Oliver, Ken Taylor's son-in-law (who has absolutely no T/S experience) has been wandering
around the resort as Ken's " Eyes and Ears" claiming to be in charge (helping?) with sales and marketing.
Well, it seems that maybe things are shaking up at last there. We hear that a week or two ago Spinnaker expierenced
an exodus of almost all their top wirters. Sales Manager, Terry
Dale (the torch) and T/O Chris
Merrick left for Coral
Sands top writers Wanda,
Vivian, Ruthi and a few others all followed suit. The
reason for the exodus is said to be not only considerably better pay but also they have the tours, the facility,
60 Pope Ave.,
and the former Epic resort Island Links. Reports say Ken Taylor came in to assure the group that Bluewater was
still a " GO" , but most had already left for Coral Sands and those who were still present didn't believe
him anyway.
On a more positive note, Spinnaker's Waterside, Egret Point, and Southwind
all
received RCI's Gold Crown
designation Cottages
is recognized as a Resort of International Distinction. Southwind also manages two other large timeshare resorts— The Royal Floridian
by Spinnaker in Ormond Beach, FL and Palace View by Spinnaker, Branson,
MO. Both were also recognized with the RCI Gold Crown
designation.
MYRTLE BEACH:
•
We've
been asked whatever happened to the infamous Nigel Russell (in case you're new to this blog and don't know who he is, you can do
a search for him using our search capacity or go to http://www.thetimesharebeat.com/street/nigel.htm ). Well, last we heard he had served his time in the SC jail and was
deported to the UK. We don't know if his wife and kids went with him. We have a sneaking suspicion that he won't
stay in the UK, though. Hey, Australia: you might want to keep an eye out for him (but maybe under a different
name...), and it wouldn't surprise us if he managed to sneak back into the USA, either. Probably laughing all the
way.
Since he was apparently deported, we must assume the police
investigation of a murder for hire plot against him didn't go anywhere.
He is most emphatically not a nice man, even by the sleaziest
timeshare definition.
- YOUR COMMENTS
- March 16: --" I
hear he now lives in an igloo, has blonde
pigtails, and calls himself Inga."
E-mail street@streettalkblog.com
|
Rumors Rumors Who's Got the Rumors?
|
•
Is there any truth to the rumor that VP Juan Barillas revisited the crew at Gatlinburg
Town Square in Tennessee with the results of the surprise
peepee
tests we reported on a while back? Apparently he & the HR director from Orlando didn't go up there to pass
out sales person of the year Awards... Did the caca hit the fan or was everyone, er, clean?
- YOUR COMMENTS:
- March 13: --" Juan's
trip to Gatlinburg was to try to pull
together the pieces of the sales team that was shattered by the abrupt resignation of Sandy Huskey, Director of
Sales. Rumor has it that she had finally had enough of the company's poor pay habits, shabby treatment of the sales
people and managers (ie, the continued witch hunt for drug usage among sales people when this is the cleanest the
track has probably ever been) and the introduction of credit rejects at the same time as the tour qualifications
were being lowered and/or disregarded altogether. Summer Bay's best sales numbers ever for this property were produced
by this team, as proclaimed by Juan in January, 2004. When only one salesperson failed the inital peepee test where
everyone was locked up a few weeks ago, the Human Resources director for the company came to town with Juan, and
under the guise of " getting to know some of the reps she hadn't met so just come on up and let me meet you" tried to test and/or re-test some of them just this week! For the record, though, there are at least two major
developers who do recognize the quality and abilities of this entire sales team so Summer Bay probably won't have
to spend too much more of Joe Scott's money to try to prove what an awful group of people he has working for him
at Gatlinburg Town Square they'll all be somewhere else, where they will be appreciated, and paid on time!"
- March 17: --" Gatlinburg
Town Square means one thing to Summer
Bay: it's the place where everyone who wants to flaunt their power within the company (former marketing director,
payroll administrator, human resources) goes to flex their muscle and let everyone know how important they are
and how much clout they have. If you work at Town Square, you are a victim of one or all of the above, no matter
how good the job you are doing. Summer Bay promised to fix those problems but not only do they still exist, they
are worse: now there are credit rejects. Try working a tour for 2 or 3 hours, giving 100%, getting a full down
payment, then finding out you're not getting paid. Guess who is getting paid, though? Summer Bay and the marketer
that sent the tour to start with. Combine that with having to beg for pay (which doesn't do any good at all, most
of the time!) and major attitude from human resources and see if you'd want to work there!"
•
Is there any truth to the rumor that there has been quite a change of guard at Carriage
Hills Resort in Ontario, Canada? We hear that among
those who have left are Steve Lovell, Promotions Manager Andy
Harvey, Director of Sales Michael Anthony, North
Bay Telemarketing Manager Tim Wallington, Promotions Department Supervisor Marlene
Schuler, Promotions Department Supervisor. Yes? No?
Some housecleaning about at CHR? Where are they going?
E-mail street@streettalkblog.com
| Quotable quotes: " The scariest thing about reaching middle age is the sudden realization that
the kids you went to school with are now running the country."
-Unknown |
• Woodside Hotels
has sold their wonderful Half Moon Bay Lodge north of Monterey, CA to Invest
West Financial/Pacifica Hotel Company,who will brand
it as a Best Western. Woodside is left with the Napa
Valley Lodge, Stanford Park Hotel, Bodega Bay Lodge & Spa, Lafeyette Park Hotel & Spa, and Monterey Plaza
Hotel & Spa. Will they sell any of those, too? The
Napa Valley Lodge is in a nice location-- maybe that's the mysterious new resort location Shell Vacations is
sitting on in Napa? Or not.
At one time Shell was negotiating with Woodside for Shell owners
to be able to use Shell's points for accommodations at Woodside properties. Whatever happened to that?
• There's a nice article in Hotel
& Motel Management about how the timeshare industry
is realizing the sales-and-marketing potential of the Internet. Fairfield's efforts are lauded, and Bluegreen,
and RCI of course, and everyone is giddy about the newly discovered possibilities of the Internet. Well, sorry,
but DUH!!! Hasn't The Beat
been preaching about that for YEARS? Some of y'all are moving right along with it, too, though there is so much
more you could
be doing. And all of y'all could be way ahead of the curve and could have both saved and made tons of money if
y'all could get over the fact that it's us beating you over the head with it. But now that the news has been made
official by a respectable publication, maybe you'll admit (quietly, and not within earshot of anyone else) that
just maybe
The Beat's
principals might have known what they've been talking about all along. Alas, a prophet is not without honor save
in his own country... Gawd we love to say I told you so. 
•
This
isn't our own idle thought, but we'd bet some of you have opinions about it so we're throwing it out there for
your consideration: --" Why is it
that the most successful timeshare companies
sell a quality product to well qualified tours, something that has a reasonable value in resale. Then other companies
drag in masses of marginally qualified, at best, tours, sell a product that works for those that have the funds
and ability to use the product as it should be, but offer an entry level program that barely works to those who
will have problems making the payments, creating a large pool of cheap resales. If you have a quality product,
why not do what's required to generate quality well-qualified tours, offer a buyback program, then make sure the
product works as advertised so that people don't want to get out. Working for a large company that does the latter,
but has a large percentage of people with enough credits to use the program properly who are very happy, I just
cannot understand why they seem to be stuck chasing the low end. Am I alone in this concern?"
- YOUR COMMENTS
- March 13: --" Very
well put. It seems to be exactly the
problem here in the Pacific Northwest. Industry researchers tell us that the median income of our “buyers” is $80,000.
So why is it that companies are willing to pay hundreds of dollars for “$35,000” income prospects? Could it be
that local tour providers are unable to attract $80,000 income households? It seems to me that part of the problem
may be that the tour providers have been offering the same worn out premiums for years. Just how attractive is
a Reno trip to an “$80,000” household, or a cheap digital camera, or a “limo ride”? Most of the tour providers
balk anytime the subject of increasing the income requirement is raised. Many seem to be having difficulty even
getting the $35,000 couple in the door.
Shame on you Sunterra, Shell, Trendwest, Demand Vacations. All of these companies have smart and creative people
who have created truly great products. How about putting all that talent to work on solving the issue of, how to
attract the people who can actually benefit and use these wonderful products?. The old adage, if it ain't broke,
don’t fix it… well it’s broke and so are most of the historically “talented” local sales professionals."
- March 14: --" Whaaaat?!
$35,000 income tours. $80,000 tours. Are
you kidding? If people making $35,000 can qualify to buy a house, why are they inferior prospects for a lesser
timeshare purchase? The marketing companies get who they can because that's how they get paid. (gasp)
You can't screw with the timeshare industry.
Wanna know why? Cause it's already screwing with you. You're gonna have to chew off your leg to get out of that
trap."
- AND: --" $35,000
qualifies you to buy a house? Where
do you live? Poverty line in California is $42,000! Min wage x 2 = $26,000, I doubt the average tour equals that
with all the unemployed, disabled, etc, marketing companies can bring in with a mid-week Reno package."
- March 16: --" In
my experience, many of the salespeople
that always complaint about income qualifications, barely make enough to qualify for their OWN tour! First of all,
if you honestly think that it never dawned on the marketers to invite people that make $80,000.00 and up you would
be sadly mistaken. There are less of them so there would be less tours, there are even fewer of them that would
come in the first place. The whole bottom of the sales line would disappear (nobody is going to hand over a tour
like that to a bonehead) You might get three of them a week, so you had better sell them something, or else you
will quickly become a bonehead yourself. Secondly, you will still get people that lie about their income, if they
lie about making $50,000.00 a year, would they not compromise their integrity by going as far as to say they make
$80,000.00 a year? more battles, more spins, let's face it, Forget about where they fit in on the socioeconomic
scale. If they don't want it, it has no bearing on anything. Stick with making them all want it. When you have
a couple that makes a $25,000.00 combined income, and they want to know if we could break up the down payment,
you are doing your job. If you operate at that level of intensity, you just might sell one of those big OLE high
income tours."
- AND: --" RE:
" $35,000 qualifies you to buy a house?" Geesh,so
I exagerated a little bit. Okay exacto, are you saying that no one in California who makes 42K or less qualifies
to own a home? Do most handicapped jobless people gamble mid week? Did you want to come over to my house? I can't
get what you were saying."
- March 17: --" When
you talk about what income qualifies
someone to buy a house, you are talking about CREDIT qualifications. When you talk about what qualifies someone
to take a timeshare PRESENTATION these are two very different things. If your developer requires a purchaser to
QUALIFY for credit then don't you think that your target market should fit those guidelines? But that certainly
is not the case at most tracks. It is so ironic that MARKETING always claims that they can't market to the income
demographic that Ragatz and Yessawich/Pepperdine prove are PURCHASING timeshare but when it comes to SALES the
salesperson is expected to take what you get and make it happen!
It is about time someone realized that marketing
makes money on quantity while sales makes money on quality. It isn't just that sales can PUSH them over the edge,
now the company has to service those Johnny Lunchbuckets that buy and collecting monthly payments and maintenance
fees are a nightmare not to mention the defaults and bad paper. It is time that Marketing is held to the same high
standards as Sales: Either bring in the right demographic in the numbers to fill the sales floor or find a marketing
team that can.
Marketing continues to use the same 'scare'
tactics with developers over and over again: " We won't get many tours if we require higher qualifications!
They won't come!" How about it developers? How much longer are you going to continue to pay these whiners
who say they cannot do the job? How long would you tolerate a sales staff that says they just can't sell the higher
income demo? Wake up and smell the coffee. If sales people are selling the higher income tour, and the higher income
tour is buying the majority of timeshare as industry research proves,why can't your marketing people sell them?
I will tell you why, because YOU let them get away with milking you for every dime sending in the easy-to-book
mooches who have no money and want something for nothing. Tighten up or else you will continue to see your revenue
slip away to the internet purchaser and resale market because the Marketing company can't get the better tours
in your doors!"
- AND: --" If
this recent comment is any indication,
now you know why the sales team won't be allowed anywhere near a marketing department. They can't count or do multiplication.
As far as having any sense for percentages, ratios or statistics...forget it. And these are meat and potatoes of
your marketers...not the emotional backed appeals, like this one, used on the prospects. If this salesperson? is
begging their guests like the rant above, there's a good reason they're complaining. You need to save that style
for them. Maybe they'll listen. But from the tone of your comment, no one is listening, which is why you're pointing
your middle finger at marketing.
Your numbers don't add up, and no matter how you scream at them, they won't add up. Until you're ready to get on
the phone or out on the street to pull in your own $80K income earners who have a sign on their heads saying " BUYER" ,
you need to work on your selling and closing
skills and practice on the $40K-$50K's
for awhile. In case you haven't ever tried to pull a response out of a marketing universe, the smaller the universe,
the smaller the response. The higher you go up in income, the fewer the counts, the smaller the universe. The more
other " selects" you overlay on the list to pre-qualify them, the counts go down further. The costs go
up higher to find them. And they are typically less responsive to offers - so you won't even see them. Use your
brain for a change. Your developer doesn't want to pay for the quality because they make money on quantity. It's
not just the marketers. There's probably enough " totally pre-qualified ready-to-buy prospects" to keep
one or two reps busy at any tract. I don't think you would be one of them. The overall costs to run that operation
would be incredible. Your developer will get more revenue at less gross cost of sale and higher profit to work
the market in the " responsive area" not the " unresponsive" area.
Does it mean you have to take some chaff with your wheat... You bet. But fiber is good for you. If you didn't have
the practice, your skill level would be so weak when you get one of those guests with the tag on their head, you'll
just miss them anyway. If you don't like the tours your team can dig up for you, maybe you should consider a real
sales career where you have to find your own. Until then, do a little multiplication. Universe size * conversion
rate = number of tours. Higher income + other qualification selects = smaller universe = fewer tours = get one
to talk to for yourself = Oops, I forgot - you can't or won't."
- AND: --" Income
is very much a qualification for purchasing
a home. It isn't just credit. I have perfect credit, but if I had no income, I wouldn't get a home loan. Ah yes,
two very alike things. Now stop putting your tongue on frozen flagpoles."
- AND: --" Everybody
in sales wants that well qualified,
interested tour. So marketing is only interested in numbers, the developer wants quanity at the lowest price. It
seems the goal should be not the lowest cost per tour, but cost per sale. If the developer is willing to pay marketing
if they provide reasonable quality, sales people should be able to produce. Sure, toss in some of those under 35,000
tours in with the 50-80,000 tours to keep us all in " practice" , just make sure that once we have enough
practice we also have someone that can afford to purchase if we sell them. Take a bunch of tours in a row that
have no ability to purchase and when that good one comes by try not to have commission breath. A good sales person
with a good product should close 50% of well qualified tours, the reason most of us close 15-20% is tour quality,
not talent."
- AND: --" The
marketing vs. sales diatribe could go
on forever, but it sure is refreshing to read so many reasoned, cogent arguments on both sides of the issue. And
from timeshare agents, yet. Who says we're all idiots?
Keep the dialogue going, comprades."
- AND: --" I
note with interest the comments made
on March 17th re marketing to the right demographics. I can't help but think as an ex-marketing man, that the person
is right on track. The old " it's always been done that way" is a feeble excuse at best. Some of the more
enlightened companies, Marriott among them, foresaw the telemarketing problems and moved to take advantage of the
internet. While no one is perfect in this area, it is a good start! Now, let's set the qualifications and get a
marketing team that can hold the brokers feet to the fire to bring in the qualified tours! A tour is not a tour
is not a tour, regardless of what the old timeshare hacks think. Yes, salespeople whine. There is either not enough
tours or there is too many. Better I think with less, but higher quality. In that case, VPS will be great, the
salespeople not overworked with moochers and the marketers will get the credit due!"
- March 18: --" I've
been marketing Timeshare for over 13 years
and you want to know what the biggest complaint I hear on the phones every day from those 50K and above clients?
They are sick and tired of being badgered, belittled, conned, and lied to by the sales people. Secondly, Mr Sales
Person, if I called you and offered you two nights at some cheesy hotel for ninety minutes of your time, would
you attend? Get the Developers to spend a little more on the incentives, and we all know that's what any client
agrees to attend for, and maybe some of those higher income " Buyers" would attend.
You know if sales treated people a little better they may even sell some of those 35K clients that they never want
to see. The company I work for (and it's the same one I started with) has always put good clients in the door.
Yes I do care whether the track gets sales or not, but that's not really my problem. My problem is weeding through
everyone that has attended a presentation and been brutalized to find that client that just moved into the area
from " Back in the Woods" and has never had to sit through a high pressure, degrading sales presentation.
Timeshare is a wonderful product and I am one that truely believes that more clients would gladly accept an invitation
to attend a presentation for some cheap incentive if they could be assured that they would be treated better.
You say we hold a gun to the Developers, come down to my office and work here for a week and let's see what you
have to say after that. By the same token, I'll go take your place at the sales site and prove to you that sales
can be made with a good attitude, positive reinforcement, and the desire to make the client believe that " my" product is the best value in the world. There is one draw back to this suggestion. You may not have a job by the
end of the week.
Quit your belly aching and start doing what they pay you to do. Sell the product not the client."
E-mail street@streettalkblog.com
- Geoff Graf,
the GM of Outrigger Reef on the Beach until now, has left Outrigger to join Fairfield
Resorts.
- Exclusive Resorts
has announced Gary Booth as senior vice president of business development and David Oswald
as vice president of architecture and design. With over 21 years of expertise in business development, marketing
and sales, Booth will be responsible for creating and maintaining partnerships and strategic alliances through
indirect channels. Oswald will enhance the residence portfolio and brings 21 years of related experience in the
hospitality industry.
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Updated March 18)
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