Originally posted by Horace Horsecollar
But the puchase prices that they charge are based on what the market will pay, not directly on the underlying costs.
For example, when they stopped providing park passes at OKW, the price per point did not go down.
Conversely, the slow sales at Vero Beach caused Disney Vacation Development to incur higher carrying costs for unsold inventory and higher marketing costs, but they couldn't raise the raise the price at Vero higher than at the other DVC resorts to make up for it. (I'm not attacking Vero; it's a wonderful resort.)
If Marketing sends me free DVC Frisbee tomorrow, it won't ever cost me a dime in any way, because I don't plan to buy any more DVC points. And for people who do buy more points, the cost per point won't be adjusted to reflect the cost of buying, packing, and mailing Frisbees.
In contrast, there is a direct correlation between the operating budget (including the set management fee) and annual member dues. If everyone checking in gets at a DVC resort get a Frisbee as a welcome gift, paid for out of the operating budget, then our dues per point will go up based on the cost of those Frisbees at each resort, divided by the total number of points at the resort.