To understand the pricing model of the ski focused destination club Ski Destinations, a greater understanding of the traditional destination club model must be known. In most destination clubs, members pay a refundable membership deposit that is partially refunded to them if a member elects to leave the club. During their time with the club, members pay annual dues and oftentimes other membership fees and can continue to use the amenities of the club as long as they continue to make these payments.
Ski Destinations, and their sister club Fly Fishing Destinations, would take a different path in the design of their club. To join, members would pay a membership fee of $80,000 that would entitle them to five years of membership with the club. During their time as a member, no annual dues or fees would be charged to members, but at the conclusion of the five year period, no funds were paid back to the member.
"This is a five year club membership that provides multi million dollar custom built homes adjacent to major ski resorts. Each home is professionally interior decorated with the best of furnishings. Also available are services to line you up with local ski adventures, ski teachers and equipment," the club wrote. "A five year membership will cost approximately $80,000.00, which includes one week of use during the ski season and one week during the off season. At present membership reservations are free. If you are looking to have access to beautiful multi-million dollar ski homes but donít want the headaches and monthly payments this is the answer."
While Ski Destinations was structured so that the club would not be obligated to repay members following five years, there would be situations in which members would be compensated prior to the five years if they wished to exit the club or if Ski Destinations did not reach its goals of total destinations. By dividing the original $80,000 across the five years of total membership, the club would refund 80% of the amount still left on the membership to resigning members. For example, if a member wished to leave after their fourth year, they would still have $16,000 left on their membership, one-fifth of the original $80,000. The club would absorb 20% of the remaining $16,000 and refund the resigning member $12,800. In addition, if Ski Destinations did not meet five total properties, members would be repaid in a similar fashion. "If for any reason we do not attain enough members to purchase all five locations, funds will be reimbursed on a years utilized pro rata basis. Example: If you paid $80,000.00 for your five-year membership and only four separate locations were available for your use you would be reimbursed $16,000.00."
The niche club was unable to reach their initial goal of ten members and did not proceed to purchase new properties or continue with their membership sales programs.
If you would like to learn more about Ski Destinations, please feel free to access our quick links found to the right for more information about the properties, executives, and other components of the club.
If you are considering destination club membership and would like to receive a free list of suggested due diligence questions and insight into the benefits and risks of joining, request a copy of our no obligation Destination Club Guide