Opinion time: It's a loss-loss situation
I try not to state an opinion in my posts, preferring to let facts speak for themselves. Nor have I openly stated anything against Trendwest that isn't in the public domain. However, after receiving responses from some readers of Trendwest Watch, I'm starting to form a few "ideas".
Think up-front
I guess I was fortunate in that I have a personal rule to "never sign anything on the night". I did my math during the information session and figured out that 12,000 credits was worth about $2,500/year in accommodation -- but we only ever pay $60 per night when we go travelling anyway!
After the Trendwest information session, I did some searching on the Internet. As I found more bargains on the Internet offering Holiday Credits for $1.80/unit I was getting excited. Then I found they were really only worth about $1/unit and I became less interested. Now that I know I can probably rent credits off existing owners, I'm not very interested in buying at all.
With 23,000 unitholders in South Pacific, WorldMark is obviously good for many people. Reading the WMOwners website in the USA shows that there are many delighted owners. However, the responses I'm receiving suggest that there are some unhappy people and they're not having an easy time getting out of their Trendwest commitments.
If this website helps people avoid some financial mistakes, I'd be delighted.
What do to?
For those WorldMark South Pacific owners wishing to exit, there's one fact --> you've made a loss and there's no way to avoid it. Economists refer to this as a "sunk cost" -- it has been paid and there's no way to get the money back. Rather, it's a matter of how to minimise the loss and get something back.
For example, if somebody paid $12,000 for credits and pays $400/year in maintenance costs, they want to get value for their holiday dollar. You'd want to have accommodation worth $1000/year to make the investment worthwhile -- and many people are doing so.
If, however, the ownership is not worth $1000/year, or you would prefer to have the money than the holiday, it's time to exit.
Current value on eBay suggests only $1/unit, so you'd only get back $6000. Many people look at this and say "but I don't want to make a loss!". Instead, they sit there losing value on their investment each year not enjoying their holiday opportunities. In that case, there are 4 options:
I've previously written about renting out your bookings, where you effectively sell your annual rights to somebody else. You won't make a fortune, but you will hopefully cover your annual costs. If you can transfer your points to a cruise, then it could be a very worthwhile sale to other people, especially with some of the deals that ICE offer each year.
Trying to sell your units is a matter of supply & demand -- you'll have to make a loss, but it's better than carrying-forward the loss.
Or, there's what most people choose -- do nothing. This is also a loss-making exercise, especially if your current "points" expire. That's money down the drain.
Get radical
If you're really annoyed, I'd suggest two further options:
1. Try to get relief via the ASIC agreement. If you purchased prior to 2003, you might have recourse to complain. Officially, they only had to respond to people within 90 days of initial notice, so that doesn't look too promising.
2. You could picket a Trendwest office. Now, this is radical and I'm not recommending you do it. However, handing out a few leaflets to attendees outside a Trendwest office before or after an information session will at least give you access to a market that understands what Trendwest has to offer. If you offer them a cheaper deal than buying direct from Trendwest, you might get a buyer. However, don't expect to do it more than once -- Trendwest earn their money on new sales and would not be happy with people hijacking their sales process. They're paying a lot of money to have people attend. Mind you, they might be in a frame of mind to assist if you stay legal in your approach. (A large sign on top of your own car, legally parked in front of their building?)
Of course, try talking with Trendwest first and make notes of your conversations. Written notes carry a lot of weight in case of future legal or press situations. It's always best to try civilised approaches first, and never go beyond the law or you'll doubly lose.
If anybody has tried such approaches, let me know!
-- Fabbo
Tags: trendwest worldmark
Think up-front
I guess I was fortunate in that I have a personal rule to "never sign anything on the night". I did my math during the information session and figured out that 12,000 credits was worth about $2,500/year in accommodation -- but we only ever pay $60 per night when we go travelling anyway!
After the Trendwest information session, I did some searching on the Internet. As I found more bargains on the Internet offering Holiday Credits for $1.80/unit I was getting excited. Then I found they were really only worth about $1/unit and I became less interested. Now that I know I can probably rent credits off existing owners, I'm not very interested in buying at all.
With 23,000 unitholders in South Pacific, WorldMark is obviously good for many people. Reading the WMOwners website in the USA shows that there are many delighted owners. However, the responses I'm receiving suggest that there are some unhappy people and they're not having an easy time getting out of their Trendwest commitments.
If this website helps people avoid some financial mistakes, I'd be delighted.
What do to?
For those WorldMark South Pacific owners wishing to exit, there's one fact --> you've made a loss and there's no way to avoid it. Economists refer to this as a "sunk cost" -- it has been paid and there's no way to get the money back. Rather, it's a matter of how to minimise the loss and get something back.
For example, if somebody paid $12,000 for credits and pays $400/year in maintenance costs, they want to get value for their holiday dollar. You'd want to have accommodation worth $1000/year to make the investment worthwhile -- and many people are doing so.
If, however, the ownership is not worth $1000/year, or you would prefer to have the money than the holiday, it's time to exit.
Current value on eBay suggests only $1/unit, so you'd only get back $6000. Many people look at this and say "but I don't want to make a loss!". Instead, they sit there losing value on their investment each year not enjoying their holiday opportunities. In that case, there are 4 options:
- Transfer & sell your annual credits to other WorldMark owners
- Rent out your bookings
- Sell your WorldMark units
- Do nothing
I've previously written about renting out your bookings, where you effectively sell your annual rights to somebody else. You won't make a fortune, but you will hopefully cover your annual costs. If you can transfer your points to a cruise, then it could be a very worthwhile sale to other people, especially with some of the deals that ICE offer each year.
Trying to sell your units is a matter of supply & demand -- you'll have to make a loss, but it's better than carrying-forward the loss.
Or, there's what most people choose -- do nothing. This is also a loss-making exercise, especially if your current "points" expire. That's money down the drain.
Get radical
If you're really annoyed, I'd suggest two further options:
1. Try to get relief via the ASIC agreement. If you purchased prior to 2003, you might have recourse to complain. Officially, they only had to respond to people within 90 days of initial notice, so that doesn't look too promising.
2. You could picket a Trendwest office. Now, this is radical and I'm not recommending you do it. However, handing out a few leaflets to attendees outside a Trendwest office before or after an information session will at least give you access to a market that understands what Trendwest has to offer. If you offer them a cheaper deal than buying direct from Trendwest, you might get a buyer. However, don't expect to do it more than once -- Trendwest earn their money on new sales and would not be happy with people hijacking their sales process. They're paying a lot of money to have people attend. Mind you, they might be in a frame of mind to assist if you stay legal in your approach. (A large sign on top of your own car, legally parked in front of their building?)
Of course, try talking with Trendwest first and make notes of your conversations. Written notes carry a lot of weight in case of future legal or press situations. It's always best to try civilised approaches first, and never go beyond the law or you'll doubly lose.
If anybody has tried such approaches, let me know!
-- Fabbo
Tags: trendwest worldmark
posted by Fabbo at Thursday, March 24, 2005
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