Bob is right, Carl. Our insurance policy is primarily to insure the buildings and contents, the loss of use is a very minor part of our coverage and only applies if you use the unit personally and not for rental purposes. If you carry your rental ualue theory further, then you should pay for more electricity in the summer because you are using the A/C more, summer costs are higher to water grass and tress and pest control is higher. If you think you are getting cheated on your July 4 week, buy a couple of weeks in March and take advantage of the summer folk.

I do not feel cheated at any price; that was not my point.
I just feel you act with a different capacity owning a $50,000 unit that has its very high “real value” due to the fact it truly represents the price.
High season justifies high prices.
The demand is very high for a beach property in spring time, people get to get away from the frost up North

An off season unit however costing between $5,000 and $10,000 can't justify a higher price than that. It sells as a vacation spot, school is out, it is as hot on Sanibel as it is at home, and you want to enjoy a beach. And that is all its worth.
The actual "school out" shoulder season is still on the higher side, like "an Indian summer" up North, coming back to life.
It creates a secondary peak in July-August before the hurricane season really drops the value due to the fact you might not have your unit available, not due to a direct hit like Charley, but hurricanes draw a constant scare in the late fall till Thanksgiving.
So the value changes constantly with the calendar.
We need to sell the cheaper units and keep those owners to hold on; they support the total time share idea.
We need them to keep the Resort in shape in off season.
We would loose a lot if we closed the Resort down during low season, the high season expenses would be much higher if we did not have the support from the low season owners.
But why should a low season owner loose his complete value of a rental at $500 to insurance when a high season $50,000 unit with a $3,500 income in rental only has to pay the same $500 for insurance?
When you talk investment value you have to realize that the timeshare expenses has gone through the roof, while the value has retreated.
I feel we are making things more and more complicated.
Our original offering of expenses during the development was easy to understand.
It was needed to understand the concept.
We have lost the visibility by lumping all expenses together hiding the details and made it almost impossible to verify our true expense.
We used to sit three days at the budget meeting discussing such details as --, what are we paying for hand soap, what is the best price for TV subscriptions, do telephones need to go up in price, and why not use our own cell phones?
We were told: so much for the pool, so much for needed cleaning supplies, so much for towels, so much for electricity and so much for water and sewer, so much for each telephone, so much for yard work, did you get the best price?
Today we have close to:
$100,000 to Orlando (what for?)
$200,000 to Hospitality (how was this arrived at?)
$200,000 for Hilton office work (How come, they have 20 Resorts in the area, (that is $4 Mill income all together? they had a staff of only 6 persons then)
It’s all lumped together with no visibility.
I hope the board will start do get more itemized this year and face individual costs, that's why lots of homework is needed by the board, are they doing any
homework now?. or just meet up without an agenda?
Ed McElroy did a lot of homework in his days; we helped each other dividing up the types of expenses for verification purposes and saved a lot each year in those days through lots of details.
Does a board member know what our cost is today for weekly soap, shampoo, paper towels and Kleenex? (Each unit’s bath room supplies for the week)
We had that down pat.
We also need to make some income for our association by handling rents and sales in house, all it takes is hiring a registered real-estate broker, and we could make millions on that.
If we hired a General Manager with a brokerage license we could do everything in house and place some improvements to the Resort.
Did I get too far out? There are no secrets, we could be running the place our selves.