Wednesday, June 25, 2008

Branson Fights Back

According to a story published this morning in the Branson Daily News, Branson, Missouri is altering its solicitation laws to combat timeshare companies with allegedly predatory offers.

A few timeshare companies, such as Branson Highlites, bring in much of their business by standing outside their properties and offering passers-by free show tickets if they tour the units. This practice has operated in a legal loop hole, until now.

If only similar laws were passed in regards to larger timeshare companies and their "free weekend getaway" offers. As a company representative in the article mentions below, most timeshare business is snared in this manner.


[From the Original Article]


“All we’re doing is creating a definition that will bring in a free-ticket scenario,” City Attorney Paul Link said. “I think people were unaware of what the law was. Under the current code, if the person soliciting or the person solicited are on public property, it is unlawful.”

“If they change this, they might as well put a lock on our door,” said Jackie Stephenson, owner of Branson Highlites on Main Street. We stand in the doorway, we greet the people and we do have free tickets. They come in and get them. We do offer, ‘Hey folks do you want to go on a tour?’ They do say ‘yes’ or ‘no.’ Obviously, we have quite a few who say ‘yes’ or we wouldn’t have been in business for five years in this town.”

The city reevaluated its law based on complaints that salesmen were chasing shoppers down sidewalks.

“They believe it’s hurting their business because of that,” Branson Sgt. Sean Barnwell said. “They say they’re having issues not only with (customers) getting agitated, they’ll skip their store.”

Some downtown business owners say aggressive timeshare salesmen are bad for business.

In the short time she’s been in business downtown, Monica Rhodes, co-owner of Pinkiedinks Cupcakes, has seen potential customers flee from persistent salesmen, she said.

“I had to tell one of them — a guy on the corner — to stop,” Rhodes said. “People are trying to get away from them and they run right past our store. They aren’t even looking at our stuff.”

Alderwomen Cris Bohinc and Sandra Williams said they’ve both been harassed by salesmen downtown.

“I do not know what particular business is doing this,” Williams said. “I do know they have approached me several times, that they have followed me down the street. So if I was downtown to do any business, I didn’t do the business because I wanted away from them.”

Downtown Monday afternoon, Pat and Bob Eastwood of Cherry Hill, N.J., said all was quiet.

“We’ve been all up and down the streets and haven’t been approached,” Pat Eastwood said.

Stephenson said she’s fired renegade salesmen in the past.

“Dog gone right I have. We’ve let a few people go because they were too aggressive,” she said. “They’re not allowed to leave my property, ever.”

Stephenson said she realizes the timeshare industry is sometimes looked down upon but hopes she can keep doing business downtown.

“I know a lot of people don’t like my business, don’t like timeshares, but it brings a lot of business to Branson,” she said.

Quotes from "Branson defining ‘solicit’" by Chad Hunter

Tuesday, June 17, 2008

CNN: Are Timeshares Worthwhile?




It's very rare to see frank discussion of timesharing in the media, especially here in the US. And yet, it seems like in the last few months many national periodicals have published feature stories on the timeshare industry, and how it has inexplicably managed to survive the recent downswing of the housing market. Perhaps most surprisingly, many of the articles in question have admitted outright that timeshares are not great purchases for the majority of consumers.

CNN recently ran an article like this, entitled "Are Timeshares Worthwhile?". This article takes a question/answer format like many others, posing the inquiry "Are timeshares a good investment" and then offering a response.

A few notable points with TSR Commentary:


- "Timeshares can bring their owners substantial savings in time and money when planning vacations, but experts warn that they should never be viewed as a financial or real estate investment."

True - a timeshare is a prepaid vacation, not an investment.

- "They do have their drawbacks -- an owner hoping to sell a timeshare might end up taking a loss. And while there are laws protecting buyers who purchase a timeshare from a developer, they don't help someone buying from an owner."

Also true. In many cases a title transfer is the only option available to a timeshare owner.

- "Basically, if you take at least a week of vacation each year and don't like sleeping on grandma's couch, then this is a great deal," says Howard Nusbaum, president of the American Resort Development Association. "But if you're not a vacationer, then I wouldn't recommend this, just as I wouldn't recommend you buy a car if you don't drive."

- Prospective buyers might think that purchasing from a timeshare owner could seem like a steal, but Nusbaum warns, buyer beware. While there are consumer protections and regulatory oversight of the industry, that would not apply to a sale in the secondary market. Most important, the buyer should be sure that all of the rights to the property or access to the facilities would transfer with the deed. While a contract with the developer is government-backed, that protection may not extend to the person the timeshare is resold to.

Again, very true, and it is refreshing to see even the resale market fall under such careful scrutiny. While it is true that timeshares purchased on resale will save dollars, it is the opinion of many that a FREE timeshare is not much of a deal. The industry has issues from top to bottom.

Read the full article.

Wednesday, June 4, 2008

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