Dave M
TUG Lifetime Member
Thank you, VPR! I think you have just proven our point!
A few estimates, based on your numbers. You pay $2,500,000 per year in advertising. You also have salary, office, phone and a variety of other costs, which I'll conservatively estimate at $500,000. And I'll assume that your profit is a low (considering the volume) $500,000. That suggests total revenue of $3,500,000 in a year. If the typical upfront fee (I might have missed an actual number in this thread) is $500, that means you would have 7,000 new listings each year.
The other key number is your closings. You currently have 8 in process. Assuming you can close a timeshare sale within a month (very, very unlikely considering paperwork, resort involvement, recording of the deed, etc.), that suggests you don't sell more than 100 in a year. Even if your suggested one-per-day average is accurate, that still means only about 250 sales per year, excluding weekends and holidays.
So, using your own numbers, it would appear that, at most, you probably sell only about one out of every 28 timeshares that you list for sale. You can modify the numbers so that it's some other ratio, but I'm certainly in the ballpark with my calculations.
Would any reasonable person pay $500 to list a timeshare week if the chances of selling it as the direct result of making such a payment were only one in 28? I think not!
A few estimates, based on your numbers. You pay $2,500,000 per year in advertising. You also have salary, office, phone and a variety of other costs, which I'll conservatively estimate at $500,000. And I'll assume that your profit is a low (considering the volume) $500,000. That suggests total revenue of $3,500,000 in a year. If the typical upfront fee (I might have missed an actual number in this thread) is $500, that means you would have 7,000 new listings each year.
The other key number is your closings. You currently have 8 in process. Assuming you can close a timeshare sale within a month (very, very unlikely considering paperwork, resort involvement, recording of the deed, etc.), that suggests you don't sell more than 100 in a year. Even if your suggested one-per-day average is accurate, that still means only about 250 sales per year, excluding weekends and holidays.
So, using your own numbers, it would appear that, at most, you probably sell only about one out of every 28 timeshares that you list for sale. You can modify the numbers so that it's some other ratio, but I'm certainly in the ballpark with my calculations.
Would any reasonable person pay $500 to list a timeshare week if the chances of selling it as the direct result of making such a payment were only one in 28? I think not!