Why Are Redseason Prices So Low?

This is one of the most common questions that we get asked – particularly by people who have just attended a Club Wyndham South Pacific sales presentation and are then comparing the prices that we offer.

The correct question to ask is actually “Why are Wyndham selling for such a high price?”

Club Wyndham South Pacific

If you look at the financial statements for the club you don’t have to dig too hard to find the actual value of the club assets – for example in the 2024 Wyndham report it shows the net assets of the club are around $604 million and there are around 1211 million credits in the club giving an asset value per credit of just under 50 cents per credit.  Note that most of the club assets are property and in the accounts these are valued at their cost price so it is likely that the asset value is significantly understated so actual asset value per credit may be closer to $1.00 if assets were revalued.  According to their own financials the average cost to Wyndham for new credits is less than 50 cents per credit, so why are they selling them at over $3.00 per credit? (Anyone attending a presention might like to ask that question for fun!)

On the secondhand market the credits tend to be selling close to this underlying asset value with a slight premium on memberships with lots of available credits (as the memberships being created do not come with extra credits available) so you can see that the secondhand price is reflective of the true value of the club property.

The question really should be why are the Developer prices so high? Wyndham use a high pressure presentation sales technique which is also a high cost sales process as they have expensive sales centres, sales staff to pay, free gifts to entice you to attend the presentation, etc. Of course all those expenses have to be paid for so those costs are added to the price of each membership which is why you pay over 6 times what the credits are actually worth if buying from Wyndham. In fact according to documents from Wyndham’s parent company they spend more than twice as much on marketing as they do on putting new property into the club (and they get more profit from each sale than what they put into the club as well).

Redseason

In contrast to the expensive and high pressure presentation sales methods of Wyndham at Redseason we use a very low overhead online sales model, we keep our overheads and advertising costs as low as possible and pass all these savings on to our customers.

For anyone still concerned that we may be a scam we can assure you that this is not the case and to prove it we do not require any payment until the transfer process is completed and you have the opportunity to verify the details with the club before you make your payment to us.  We are fully licensed with ASIC with an Australian Financial Service License (number 491352).

Still concerned? Call us for a chat on 1300 79 60 89 and we will happily answer any questions you have.