Recipe For
Seems as though there are two
camps in the high end of the shared vacation ownership world.
Some Luxury Fractional Properties and Private
Residence Clubs are already throwing a party. They've sent the invitations,
decorated the ballroom, set the table and hired the caterers... but will anyone
come? Isn't that the pervasive question?
Another faction of developers is still in the
planning stages. They have high hopes that when the guest lists do go out, the
RSVPs will be returned in abundance.
Today, most developers would rather be in this
group vs. the former one.
Bring on the Chateaus & Van Gogh's
The "wealth effect", or more
accurately the "negative wealth effect", is controlling sales these
days. A lot of our customers have the money to spend to buy a fractional
interest, but they 'feel' as though they don't, so they aren't. It's as
straight forward as that.
The buying habits of the American public are quickly
adapting to the new economy and every one is feeling it. The New York Times
reports that even Bergdorf Goodman is cold-calling former customers offering
special incentives to get in the door. There are always parking places in every
mall. Whether the business is retail or real estate, people are deciding to
spend less.
Fox News reported the other day that $300,000
invested in the S&P500 a year ago would now be worth $160,000. Take any
variation on that number and our customers know that. So, go from a portfolio
of $7 million to $3.8 million - that's still a cut worth thinking twice about.
The fractional interest is a personal use
purchase. Each of the "buying PAIR" needs to sign off on that use. In
these times one of the buying couple is sure to be more 'tucked in' than the
other, and there goes the sale!
So, on the Spectrum Clusters I say bring on the
Elite Spenders like the "CEO with a Lexus to Go' and the 'Chateaus &
Van Gogh's'. These are the folks to whom we have the best chance to sell this
winter. By fall we may have a chance with the 'Big Spenders' who are a bit more
cautious these days.
You remember the Xerox sales training program?
Selling for benefits and not features? Now's the time for that for one buys
what benefits them most. The adjustment in the sales pitch today will be vital
to snag those sales than can be snagged!
Whether you are waiting for your doorbell to
ring, or haven't yet sent out the party invitations, having your blue print for
success in place will make the party all the merrier.
With our global economic forecast being what it
is, this is the time to plan ahead and strongly urge developers to be able to
zero in on their target market's needs and hot buttons. It also lets them be
poised to hit the ground running when stronger conditions re-appear.
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Carl G. Berry RRP is CEO of Star Resorts. He
has over 30 years of resort and urban development experience. Founded in 1978
Carl's predecessor companies, California Resorts and Resort Advisors,
developed and marketed a wide deck of resort projects including the first
urban timeshare and the World's largest urban project; the The Manhattan Club in NYC, Carl's skill sets include
resort development, marketing and direct selling. He was the founder of The
World's Finest Resorts, and has served as Chairman of the American Resort
Development Association (ARDA). Carl is a full member of the Urban Land
Institute and is a member of the Red Flight of the Recreational Development
Council. Article Source: http://EzineArticles.com/?expert=Carl_G._Berry |