My family recently took a spring break vacation together. It was a great time to get away, unplug and relax. While enjoying time on the beach, I noticed several people meeting with sales people from the resort we were staying at. They were selling those infamous vacation timeshares. This was an eye-opening experience for me, but not in the way it is for other people.
We have many clients that invest in second homes or timeshares, so this concept was not usual. However, the time allotted to make this decision was striking. The resort’s team was asking vacationers to sign contracts within three to four hours. In many instances, the timeshares were in excess of $10,000. That is a large financial commitment to make on a very short timeframe.
The sales team did a brilliant job of painting a future full of time away with rest and relaxation. Many people whom I would assume could not afford to make these types of significant financial decisions were enticed by the sales team’s offer of free vacations or a free night stay. Sometimes it was as simple as a free dinner or activity. This really struck me because I spend many hours every day helping people make financial decisions. So why was I among those enticed by these offers?
Then it hit me. How many people are making significant financial decisions based on emotional impacts? It’s the age-old sales trick — really hone in on the emotional impact of these decisions and drive the deal home. What better time to do this than when you are on vacation.
It is easy to get caught up in the feelings of vacation and getting away. While these people were asked to make a decision equivalent to the purchase of a nice used car, to my amazement, there were a number of folks that ended up signing these contracts. After all, who wouldn’t want to have more vacations?
Every day we work with folks to help them secure their financial future. Most of our clients are perfectly capable, from a financial perspective, of buying a vacation timeshare. However, the point is I was amazed at the concept of people making $30,000 decisions within three to four hours. We often invest that amount of time in our initial “discovery” phase of our client engagement experience.
It is often said that people spend more time planning for a vacation than their financial future. I am proud of our clients for taking time out of their busy schedules to create appropriate financial roadmaps. I believe by completing our process, they have better time away and are less susceptible to poor financial choices.
Securities, investment advisory, and financial planning services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC 525 Junction Road, Suite 8100 North, Madison, WI 53717 (608) 829-0015. Triumph Wealth Management is not an affiliate or subsidiary of MML Investors Services, LLC, or its affiliated companies. CA Insurance License # 0C27168 CRN202005-231015