Everything about Advertising -- in no particular order

The Numbers Game -- by Lisa Ann Schreier Today we're going to address the numbers game, which is something that all resorts and, ultimately, all salespeople have to deal with. For a long time, I have been advocating target marketing. Target marketing to those people who are in the travel mode, and with the disposable income to purchase a timeshare (yes, I'm going with the traditional term here… it goes back to being proud of your product). Let's look at the following scenario. Resort A does their marketing via the usual… phone calls, direct mail, etc., touting a mini-vacation of some sort with the qualification that the booked party attends a timeshare presentation. In addition to the discounted stay, they are usually gifted in some manner. Let's further assume that Resort A is paying some marketing company $350 for each tour. Further assume that the marketing company is able to book 100 tours for a given month. $350 x 100 = $35,000. Now assume that Resort A has an exceptional sales force with exceptional managers and they are able to close 20% of these tours. (Yes, I know, I enjoy an extraordinary fantasy life.) At an average sales price of $10,000 (to keep the math simple) Resort A has sold $200,000 worth of timeshare. Without taking into account anything else other than the cost of the tours and the cost of the gifted tickets (average cost $100 per tour), Resort A has cleared the following: $200,000 in sales $ 35,000 cost of generating tours $ 10,000 cost of gifting tickets Resulting in a net gain of $155,000 Now look at Resort B. Resort B has decided to target their audience and NOT GIFT ANYONE (I know, another example of the rich and fulfilling fantasy life that I lead). This resort is advertising TIMESHARE in an upscale publication geared to families and individuals that travel, with an average household income of $40,000+. Oh, perhaps a quarter-page four-color ad each month for four months. The magazine reaches an audience of 200,000 per month. The cost of a small schedule like this is the same $35,000 as the marketing costs of Resort A above. Each month, this ad should be able to generate 100 tours per month. Again, the resort is blessed with exceptional salespeople and exceptional managers and closes 20% of the tours. Please note however, every bone in my advertising trained body begs me to tell you that if Resort A is closing 20% using no pre-qualifications of any kind, even average salespeople at Resort B should be seeing 25% to 30% closing numbers. Let's do the math again: $800,000 in sales (400 tours x 20% x $10,000) $ 35,000 cost of ads Resulting in a net gain of $765,000 All the naysayers out there will immediately jump up and down screaming and saying that the ad ran for four (4) months, and if the marketing company was allowed to do their work for four months, their numbers would go up as well. True. But that's another $35,000 for the marketing company and $10,000 for the gifting tickets PER MONTH. I'm not saying to dump your marketing companies and do only magazine advertising. I am saying that it's time you take a look at where the money is going and start playing the numbers game to your advantage. Advertising timeshare requires a healthy marketing mix. If nothing else, consider this: do you, the timeshare resort owner or developer, want to continue to be at the mercy of your marketing company or would you like to take matters in your own hands? Assume some control and you will be pleasantly surprised at the results.

Lisa Ann Schreier is a dynamic, outspoken, devout believer in the power of advertising done correctly. Lisa brings a wealth of advertising, marketing and promotional knowledge to her many business interests. She is the director of her own marketing/advertising agency, a full-time timeshare salesperson, a contributing writer and a part time Cast Member of the Walt Disney World Resort. After one too many long cold winters in Chicago, she now happily lives in the Orlando area where she is known for her consumer insights and "back to basics" style of business. Lisa writes a bi-weekly column on the basics of effective advertising. She be reached at GRQ1@aol.com , or read her ad here.

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