Timeshare - Timeshare Industry Sales Practices

Timeshare Industry Sales Practices

Incentives for the Prospective Buyer to take the "Tour":

• 1: A three day two night stay at a Vacation Resort. (more often than not, this Resort is also a Timeshare and the Prospective Buyers will find themselves on another Timeshare "Tour")
• 2: Various gifts, that may range from Luggage to a Toaster.
• 3: Pre-paid tickets to a movie, play or other entertainment.
• 4: Gambling Chips, usually at another Timeshare Resort that has legalized Gambling.
• 5: Various pre-paid activities coupons usually in or near the Venue the prospective Timeshare buyer is attending.

The Tour: First, the "Prospects" (prospective buyers) are seated in a Hospitality Room with many tables and chairs to accommodate families. The Prospects, are assigned a Tour Guide; usually a Licensed Real-Estate Agent, but not in all cases. The actual cost of the Timeshare can only be quoted by a Licensed Real-Estate Agent. After a warm up period and some coffee or snack, the lights will dim and the Prospects will be shown a Film designed to dazzle them with exotic places they could visit as Timeshare Owners.

Then the Prospects will be invited to take a tour of the property, which will include an accommodation that the Tour Guide or Agent feels will best fit the Prospect's family's needs. Then it's back to the Hospitality Room for the verbal sales presentaion. The Prospective Buyers are given a brief history of Timeshare, and how that relates to the Timeshare Industry today. During the presentation, they will be handed the exchange book from RCI or what ever exchange company is associated with that particular Resort Property. The Prospects will be asked to tell the Tour Guide the places they would like to visit if they were Timeshare Owners. The rest of the presentation will be designed around the responses the Prospective Buyers give to those questions.

If the Guide is Licensed, he/she will then give the Prospect the Retail Price of the particular unit that best seemed to fit the Prospect's needs. If he/she is not a licensed Agent, a Licensed Agent will now step in to present the price. The Prospective Buyer will then be given an incentive to "Buy Today"; usually in the form of a discounted price that will only be good "Today". If the reply is No, or "I'd like to think about it", the Guide will ask the Prospect to please talk to one of his managers before the Prospect leaves. It is at this moment, that the Prospective Buyer realizes that his/her Tour has actually just begun.

The Manager, Assistant Manager or Project Director will now be called to the table. This procedure is called "TO"; or getting the "Turn Over" man to find an incentive usually in the form of a smaller less expensive unit, or a "Trade-in" unit from another owner; which is commonly used as a sales ploy, because the Resort is not interested in reselling already Deeded Property. Similar to the Automobile Sales industry, the Manager and Salesman know before hand, exactly what the lowest price is that will be offered to the Prospect; well before the Prospective Buyer has arrived for the Tour. If one incentive doesn't move a Prospect to purchase, another will follow shortly; until the Prospect has either purchased, convinced the usually very polite sales crew that no means no, or has gotten up from the table and escorted himself/herself out of the building.