timeshare industry loan and maintenance fee payment incentives reward coupon program july 2009

Americas

Best

Coupons LLCCoupons for the

Timeshare Industry

Offered under an Exclusive Marketing Agreement for selling to the Hospitality

Industry between America’s Best Coupons, LLC and D. L. Richardson

Development Group, LLC Scottsdale, AZ

Confidential Information

Incentivize Owners to make

Maintenance Fee And Loan

Payments ON TIME

Reward Coupon Program

Gas or Grocery Coupons.

Use In The U.S.A., Canada and Puerto Rico!

Lower Tour Costs | Use as Same Day Incentive |

Reward Prompt Payment of Maintenance Fees |

Reward Owners for making Monthly Loan

Payments on Time | Reduce Loan & Maintenance

Fee Defaults | Encourage Driving to your ResortOffered under an Exclusive Marketing Agreement for selling to the

Hospitality Industry between America’s Best Coupons, LLC and D. L.

Richardson Development Group, LLC Scottsdale, AZ



CURRENT TIMESHARE SITUATION

• Banks have frozen construction & credit lines to Timeshare Operators &Eliminated Securitizations

• Timeshare end loans for timeshare purchasers hard to get or are non-existent

• Market and Economic Conditions have brought timeshare sales to a halt

• New timeshare resort development has ceased






CURRENT TIMESHARE SITUATION• Buyers of timeshare

– Timeshare now viewed as liability rather than asset

– At the bottom of the “must have” list & harder convince owners to continue making timely payments on Loans and Maintenance Fees

– Current financed timeshare owners are reprioritizing their timeshare loan payment or are already delinquent on the Loan payments

– Timeshare owners are reluctant to pay annual maintenance fees timely holding off to last the minute costing HOAs and Mgmt Cos collection $s

– Timeshare owners are reluctant to drive to resort because of high gas prices

g






• Introducing the S-O-L-U-T-I-O-N and

the R-E-L-I-E-F to Default Collections

Gas or Grocery Coupons!





Reward Coupon Program – Gas Coupons

Promotion #1 – OPPORTUNITY #1 – Incentive to Pay

Maintenance Fees

• Include a $300 to $500 Gas or Grocery Reward

Certificate if the timeshare owner pays maintenance

fee within 30 days of invoice – Pays for their gas while

vacationing





How many more can you think of ????

Promotion #1 – OPPORTUNITY #2 – Incentive to make

Financing / Loan Payment

• Include a $300 to $500 Gas or Grocery Reward

Certificate if the timeshare owner pays 6 or 12

consecutive monthly payments on their timeshare week

within 30 days of invoice date


BENEFITS OF Promotion #1– Incentive to Pay Maintenance Fees

• Reduces carrying costs and potential of Maintenance Fee

increases to other owners

• Reduces the cost of collection on unpaid Maintenance Fees

•Reduces the Number of Foreclosures

• Customer satisfaction should increase & lead to referrals

BENEFITS OF Promotion #1 – Incentive to make Financing / Loan Payment

• Reduces carrying costs and potential of Interest Rate increases to other

owners

• Reduces the cost of collection on unpaid Financing / Loan Payment

•Reduces the Number of Foreclosures





Guests will remember and/or be reminded of your

Property Every Month When They Redeem Rewards!!!!

Rewards Coupon Program

• BENEFITS FOR YOUR BUSINESS:

– Ensure Maintenance Fees are paid on Time

and Reduce Collection Costs

– Ensure Monthly payments on paid on Time

and Reduce Collection Costs

– Ensure customer loyalty.

– Increase Tours and Conversions

– Increase Occupancy and RevPAR from

“drive too” Mini-VacsOffered under an Exclusive Marketing Agreement for selling to the Hospitality









Timeshare Incentive / Reward Coupon Program For HOAs and Loan Servicing Companies

Maintenance Fee Payment Incentives Assumptions # of Units Weeks Sold Total Weeks

Typical Timeshare Property 150 50 7500

% of Weeks Sold 85% 85%

# of Weeks Assessed Maintenance Fee 6,375

Default Rate on Loans - Same for Maintenance Fees 15%

Current # of Weeks Defaulting on Maintenance Fees 956

Average Maintenance Fee at the Timeshare Property 400.00$

Potential Lost Maintenance Fee Revenue 382,500$

% Owners that Pay Maintenance Fee for $300 Gas or

Grocery Reward Coupon for Paying within 30 days of

Re-Invoicing 33% 319

Potential Recovered Maintenance Fee Revenue 127,487$

Cost of Reward Coupons

$300 Gas or Grocery Reward Coupon 18.00$ 5,737$

Net Gain in Maintenance Fee Revenue 121,750$






Timeshare Incentive / Reward Coupon Program For HOAs and Loan Servicing Companies

Incentive to Owners to make Loan

Payments on Time Over 6 Months Assumptions # of Units Weeks Sold Total Weeks

Typical Timeshare Property 150 50 7500

% of Weeks Sold 85% 85%

% of Owners that Finance Timeshare Week Purchase 80%

# of Weeks Assessed Maintenance Fee 5,100

Default Rate on Loans - Same for Maintenance Fees 15%

Current # of Weeks Defaulting on Timeshare Loans 765

Average Timeshare Week Purchase Price 20,000$

% Down Payment 10%

Loan Amount 18,000$

Term 84

Interest Rate 12%

Monthly Payment $317.75

6 Consecutive Months of On Time Payments $1,906.50

Total Potential Loss on Defaulting Loan Payments $1,906.50

Potential Lost Loan Payments Based on Default Rate 1,458,469$

% Owners that Pay Maintenance Fee for $300 Gas or

Grocery Reward Coupon for Paying within 30 days of

Re-Invoicing 33% 255

Potential $ Recovered with On Time Loan Payments 486,108$

Cost of Reward Coupons

$300 Gas or Grocery Reward Coupon 18.00$ 4,590$

Net Gain in Loan Payments Recovered 481,518$

Plus Foreclosure Cost Avoidance on These Loans 1,000.00$ 254,975$

Total Net $ Benefit to the Timeshare Loan Servicing Company 736,493$


If your Timeshare HOA or Management Company is

Experiencing a 15% Default Rate

• Your Property will Recapture $121,750 in

Net Gain in Maintenance Fee Revenue By Implementing the Reward Coupon

Program

• Your Property will Recapture $736,500 in

Total Net $ Benefit to the Timeshare

Loan Servicing Company By

Implementing the Reward Coupon

Program

• Gas Coupons Encourage Return Visits –

Defaults Do Not

• Gas Coupons Encourage Property Usage

– Defaults Do Not

Offered under an

Exclusive Marketing

Agreement for selling to

the Hospitality Industry

between America’s Best

Coupons, LLC and D.

L. Richardson

Development Group,

LLC Scottsdale, AZ


Reward Coupon ProgramYour Property Name Printed on Coupon Under Issuing Company

Offered under an

Exclusive Marketing

Agreement for selling to

the Hospitality Industry

between America’s Best

Coupons, LLC and D.

L. Richardson

Development Group,

LLC Scottsdale, AZ


How it works…

Pricing for Reward Coupons…

• PROPOSAL

– GAS or Grocery Coupons of:

– $300 Coupon

– 1st 3 months = $18.00 then $16.00 thereafter

– $500 Coupon

– 1st 3 months = $21.00 then $18.00 thereafter

Order 100 Coupons of one type minimum for the first order. Name

printed on Coupon is $1.00 per coupon. Every order after has to be 100

or more Coupons. Coupons cannot be sold to a consumer. The must

be given as a gift at an end result.

Offered under an Exclusive Marketing Agreement for

selling to the Hospitality Industry between America’s Best

Coupons, LLC and D. L. Richardson Development

Group, LLC Scottsdale, AZ


Questions?

• Please call Darrell Richardson

• Office (602) 509-3355

• Or email [email protected]

Mr. Richardson is a Regional Director for American

Motel Hotel Brokers Network located in Phoenix AZ

and has over 16 years experience in the hospitality

industry.





mailto:[email protected]

timeshare industry loan and maintenance fee payment incentives reward coupon program july 2009

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