ARDA is coming up in about 6 weeks. I’m sure everyone is eager to get some perspective on the state of the industry. I’ll be a “Table Leader” at the Fractional And Private Residence Club Forum on Monday morning and I will also be on a Fractional Ownership panel “Consequences Of Lowering Prices“, with Jim Beckham, moderating, and Dale Goodman from GoodManagement and Chris Payne from Ballard Spahr, LLP accompanying me. From the convention program…. “This session is designed for those developers that have their project in the sales process and are trying to continue selling in a stagnant environment. Are there additional benefits with perceived value that will allow the developer to maintain current pricing without significantly raising costs?”

Of course there are consequences in lowering prices like reduced revenue and we will be taking a look at those, but what we think attendees will be looking for are specific alternatives to reducing prices in order to stimulate sales. Early information coming to me from several sources is that incentives and other strategies have not been successful since the session topic was developed last July and that reducing prices has been the only way to get a few sales. Maybe, last July, alternatives to lowering prices may have seemed like a good idea. In practice, however, in the months following, there appears that there has not been much success pursuing that strategy….OR Has There?

Here is where my colleagues and I on the panel could use your help. HAVE YOU BEEN SUCCESSFUL WITH ANY PROGRAMS, INCENTIVES, OR STRATEGIES, OTHER THAN LOWERING PRICES, TO STIMULATE SALES?

Would you please respond directly to me at tomgoetschius@aol.com

If you’ve tried incentives or other alternatives and found them to be unsuccessful, we’d like to know that too. Additionally, if you have reduced prices, may we ask, “How much?”….”Any negative consequences?”

In short, we’d like to hear any thoughts you have on this topic. May we say, “Thank you” in advance and we look forward to seeing you at the convention.

Dear Vacation Home Buyer:

It is the beginning of March and we have been inundated with bad news about our economy for months and the stock market is somewhere around 7,000. There is no doubt that we are in the midst of troubling times that warrant concern and caution. But, is there any doubt in anyone’s mind that we, as individuals and a nation, will prevail? Are we to give up on our goals, our dreams and aspirations? Are we to accept that our standard of living and quality of life are gone forever? Is this what Americans do? Have we ever not prevailed in the face of every adversity?

It is understandable why you would temporarily pull back from purchasing a new car or re-decorating the house and especially why you would put off your dream of a vacation home. That was the prudent thing to do, under the circumstances. We all waited to see what steps would be taken by a new administration to deal with the situation. While there still remains an aire of uncertainty, it is undeniable that steps are being taken, and remedies are being put into action. Not all of the actions may work but it does serve as sign to all that the American Dream, while bruised, is still very much alive and viable.

Many will continue to adopt a “wait and see” attitude, secretly acknowleding that individual and national prosperity and growth may never recover, and as a consequence, deprive themselves of the lifestyle they so richly deserve.  Others are ready to get on with their lives, betting on the resiliency, innovation and optimism of the American collective. Some are already preparing for a recovered economy and a continuation of the American Dream. This morning’s Orlando Sentinel ran a story on actions being taken by local hotelier Harris Rosen….”He is spending $30 million to upgrade his leisure hotels on International Drive. Improvements include pavers around the pools, flat-screen TVs and new furniture made in America. Lots of grateful workers are on the job. ‘We want to be perfect when this economy turns around,’ he says……It’s refreshing to hear someone say when instead of if. Everybody else is trying to survive today. Rosen is planning years ahead. The man who made his fortune during the tourism collapse of the mid-1970s is laying the foundation for an even bigger fortune in the aftermath of this collapse.”

Here is the question:  Should you, the successful consumer who has a job, has good credit and remaining home equity continue to deprive yourself of enjoying a quality leisure lifestyle because of this worrisome, but albeit, temporary situation?

Let me speak to Baby Boomers, specifically, (the tradional buyers of Fractional Ownership)……The clock continues to tick. The days continue to fly by at an alarming rate. The grandchildren grow up so fast and life can pass us by unless we seize on every opportunity.  Every day that you put off the joy of retreating to your vacation home or traveling through the exchange program or providing lifelong memories for you, your children and your grandchildren is a day lost forever. Those many years ago, if we had waited until everything was perfect, most of us would still be unnmarried.  We had faith in a better day and an undying hope that things would turn out OK. We need faith and hope now, more than ever before.

There has never been a better time to secure a second home

lifestyle through Fractional Ownership than right now.

If Fractional Ownership made sense to you before the downturn, then it makes even more sense now. The result of our current and temporary condition is that when we emerge, we will be smarter consumers. We will analyze more carefully each major purchase, waying the pros and cons and the benefits to our lifestyle. Fractional Ownership is the best choice to secure a second home. It combines all of the benefits of an expensive vacation home with the services, treatment and amenities of a fine hotel. It makes economic sense while at the same time delivering a superior experience to traditional second home ownership. There will always be reasons not to do things and the situation will never be perfect, but we Americans will still be here, enjoying the finest lifestyle on the planet, still the “shining city on the hill”. Don’t let the doom and gloom people steal your dreams. If you can afford it and it makes sense to you, then do it now. “Yesterday is history. Tomorrow is a promissary note. All we have is right now”.

With kindest regards,

Your Fractional Ownership Developer

Welcome to the premier posting on my blog site. It is my hope that this can be a forum where there will be a beneficial exchange of information about Fractional Ownership and Private Residence Clubs. It is truly an idea whose time has come. I am getting more calls than ever before about the opportunities and benefits that Fractional Ownership offers both developers and consumers. Admitedly the current market conditions have a lot to do with the increase in interest. Whatever the reason, it is great time to be in this arena. In the very near future, as soon as I get some time, I will be posting or archiving articles that I have written. The first thing I am going to post are the 10 criteria that I apply to a proposed Fractional project. Please look for it in the next few days.

I will also be highlighting fractional/PRC projects that I am currently involved with on a consulting or marketing and sales basis. As a matter of fact included here is a photo of a 10,000 square foot Estate Home oceanfront in Costa Rica that I am heading up. Playa Langosta Private Residence Club is going to be offered in a 1/8th fraction with usage one week every other month. The web site will be ready in a week or two and then we’ll take reservations….So, stand by for more.

Until next time,

Promoting the best in the resort development industry

Tom