Scammy Sales Tactics & Timeshares

Sales Tactics You Need to Know... and are Timeshares a Scam?

Have you ever felt pressured into buying something you didn't want? In this episode of Scams, Hacks and Frauds, we expose the manipulative sales tactics used by scammers — and high-pressure salespeople — so you can protect yourself.

In this episode we cover:

• Objection handling — the scammer's secret weapon. Learn how salespeople and fraudsters are trained to dismantle every reason you give for saying no, and why "no" is all you need to say.
• Artificial urgency — the countdown timer scam. Why that ticking clock on a website is almost always a lie, and how fake deadlines are used to stop you thinking clearly.
• Timeshare scams explained — are timeshares a scam? We break down how timeshare presentations use both tactics above to pressure you into signing, why the "investment" pitch is misleading, and why reselling is nearly impossible.
• How to protect yourself from high-pressure sales tactics, both online and in person.

We publish new content every other Monday. The short time our episodes save your wallet, and help protect your family.

If you like shows like "The Perfect Scam" or "Darknet Diaries" then this show might be for you.  

On our website you’ll find more computer hacking, identity fraud, impersonation, consumer rights and Romance Scams.  To find these and to access our transcripts, visit us at www.scamshacksandfrauds.com.

The transcript and spoken audio are available under the Creative Commons, Share Alike, With Attributions license. For more information on this visit creativecommons.org.  

Transcript

So this week I had an unpleasant experience with a dentist- no, not the one you’re thinking.  The dentist was using some sales techniques that I really didn’t appreciate given the situation… and that got me thinking about how a lot of sales techniques are also used in scams and can make some products seem very scammy.  So this week, on Scams, Hacks and Frauds, I’m going to start by sharing two common sales techniques and how to beat them, and look at what a timeshare is as these techniques are used a lot to sell timeshares and whether they’re  a real investment or just a scam.

Remember to share this show with those you care about, especially those in your family who insist on talking to every salesperson they come across… Especially if they’re going to a tourist hotspot like Florida.

Let's start with objection handling.  No, you’ve not turned into Legal Eagle; this isn’t a legal term.  Let's imagine I’m running a cake stall, selling some amazing chocolate cakes. As you walk past, I try to call out to you, telling you just how delicious these amazing cakes are and why you should buy some… and although it might be ridiculous to suggest this, let's say you’re completely not interested in buying one.

There are lots of things you might say: you might say that you’re not hungry, or that you’re in a hurry to pick up a child, or maybe even that you don’t even like cake.  Those are your “objections” to the sale.

A good salesman, or scammer, has a response ready for each of those.  Not hungry now?  That’s fine; the cake keeps really well, so you can eat it later.  Going to collect your kid?  Doesn’t your kid deserve a treat?  Why not buy two pieces?  Don’t like cake?  Well, I’ve got some amazing cookies right here!  These are ways to handle each objection.

Some people give these objections because they don’t want to appear rude… But what you’re actually doing is making the salespersons’  (or scammers) job easier.  If I remove each of those objections, I get you one step closer to saying yes.  Even if you give me another objection, we’re still a step closer, and I can dismantle that one.  Each of those handled objections is now on you; they’re no longer reasons to say no, they now feel like more pressure to say yes.

Let's look at this from a scam perspective.  Let's say you’re in a pig butchering scam. I have a million dollars that's coming your way; you just have to pay a $200 admin fee.  You might say you don’t have the money… but wouldn’t it be worth borrowing it or taking a credit card advance if you’re guaranteed a million dollars?  Objection handled.

So how do you defeat this… As I used to tell a colleague of mine, " No " is a complete sentence.  If you don’t give a reason, you give them nothing to work with.  They can repeat their spiel, but that's it; it's a lot harder to wear you down.

But even better is not to engage at all.  If you’re in an environment like that, look straight ahead and walk at a brisk, confident pace.  Don’t turn your head, don’t make eye contact.  Don’t worry about what they might think of you; every other person is doing the same. You’ll very soon be forgotten.

——

Next, I’ve been thinking about buying one of those titanium non-stick pans… If you’ve seen them, you’ll know they’re pretty pricey, so imagine my surprise when I’m scrolling through social media and I see one come up for about 1/3 of the price of the others.  Of course, doing this show, I’m sceptical, but no harm in taking a look, right?  Imagine my surprise when I see a 10-minute countdown timer at the top of the screen telling me the deal is about to expire…

Now my fingers can be pretty thick sometimes, so I accidentally closed the window and opened it again, and to my surprise, or not, the timer had restarted… and I just went back to the site now to see if it's doing the same thing… and not only is it still doing it, but just for fun I let the timer run out… it hits zero and then… Nothing.  The price stays the same, and if I refresh (clicks), yep, the timer restarts.

What we’re seeing here is an example of false or artificial urgency.  Basically, it makes things seem more urgent or time-pressured than they really are, so you spend less time thinking about them.  Now I’m not saying the site or product I was looking at is definitely a scam; I’d have to buy the pan and test it if it ever arrives to be sure, but the tactic isn’t just scammy; it is one that scammers commonly employ… and especially on websites selling scam products.

But You will also see it on other sites.  Travel websites often tell you that other people are looking at the deal you’re looking at or that other people are booking it. But you won’t just see it online… A salesman might tell you that the amazing deal that you’re being offered is a one-day-only deal that expires when you walk out the door… or a deal might have the words next to it “Whilst stocks last”… And even fast food gets in using this trick, adding a special sauce or an extra ingredient to their regular burgers for a limited time offer - and yes, I’m ashamed to say even I fall for that one.

So what can you do about it?  Well, remember that site with a timer. In the UK, the Advertising Standards Agency doesn’t allow misleading advertisements, so I was able to report that to them… but it might not be an option where you are… But now that you know those messages on a website are a trick, you can either ignore them or take them as a sign to be suspicious of the site you're on.

As with any other purchase, whenever I feel like I’m being pushed into something with a deadline or what I think might be another high-pressure tactic, I stop and take a breath.  If it's a big purchase, even when I’ve decided what I think I want, I don’t buy it the same day; before I click the button; I wait at least a day, maybe more… The number of times I think I’ve decided to do something only to pull back is, well, huge.

——

A place where you’re going to see these high-pressure tactics a lot is in a Timeshare presentation.  

The primary promise of a timeshare property is to give you cheaper or better trips.  A very simple version of this is you and a group of other people buying a holiday home, and then dividing up who gets which week… But over time, these have become even more complicated. Instead of owning a specific property, you might now own “points” that allow you to use a certain type of room, and you may be able to use these at different resorts and potentially buy, sell or trade these points.

If we’re looking at these purely as a product, then timeshares are not a scam.  If you’re buying from a reputable company, then you will, in fact, get something from your money that will allow you access to a property in line with what’s written in your contract.

What makes them scammy products in many cases comes down to two major but overlapping areas: people not fully understanding what they’re buying and high-pressure tactics.

People are often introduced to a timeshare opportunity by being promised a gift in exchange for attending a presentation… and the gifts they’re offering aren’t small… You could be offered multiple free nights in a hotel in a major tourism hotspot for free, or a greatly reduced price, a gift card in the hundreds of dollars - perhaps even both - and you might be thinking that this is an opportunity to scam the scammers - attend a presentation that you have no intention of buying from and get the gift; but remember, they wouldn’t be offering these amazing incentives if they were’nt confident they could wear you down, and as strong as you might think you are, these guys are experts at wearing people down.

They will use those tactics we talked about before and more. 

They’ll often tell you the offer is limited, only available today.  But you already know that’s false urgency.  The fact is, there are a ton of timeshares, vacation clubs, and similar products out there.  Although there may be only so many rooms in a building, more and more of these rooms in similar buildings and resorts are being built; and today’s deal is also probably tomorrow’s deal - the salesman will probably have a full day tomorrow making similar pitches and will not turn down a sale tomorrow.   There really is no need to rush to make a decision.

If you tell them you can’t afford it, they’ll handle that objection - they’ll show you some figures that will try to convince you that you can’t afford not to take up their offer.  They will claim that buying a timeshare in the long term will be cheaper than staying at a hotel, downplaying other costs that come with ownership, such as maintenance - because if you’re the part owner, you are on the hook if the roof leaks, the windows break, or any other maintenance issues show up… and sometimes these maintenance issues can even include building major resort upgrades intended to attract more timeshare buyers.

You might also be told that what you’re buying is an investment, that you will be able to resell your timeshare later.  For the most part, whilst this is sometimes true on a technical level, it isn’t actually possible in almost all cases.  Some timeshare agreements make this difficult; some make it impossible, but even if you can get over that hurdle, the market for reselling timeshares is essentially non-existent, with one major exception: Disney Vacation Club.  Often, people get so desperate to get rid of their timeshare that they try to give it away.

So what's our advice?  If you’re on break and you are asked to attend one of these presentations, don’t.  Don’t think you can outplay or outscam them by taking the prize and running, these guys are experts in convicning people.   If you somehow find yourself in one, just keep saying no, and maybe ask if the presentation is complete.  Don't give a reason for saying no, just no.  If you have said yes and are having buyers remorse, get immediate legal advice to find out if you can withdraw, depending on what laws apply, and if you move quick enough you might be able to pull out without any penalty.

If you are thinking about buying a timeshare, look into it in the comfort of your own home.  Do your research online, do your own calculations, and don’t think of it as buying real estate, think of it as prepayin for a hotel room.  If you’re going to be able to legiimately use that room, or swap it for rooms elsewhere compare that to what you’d really pay, remember to factor in maintenence costs and check what they call mainetnence doesn’t include new improvements , but whatever you do, do it in the peace and quiet of your own space, not when there’s a salesman in the room trying to talk you into it.

But if you own a timeshare and want to get out, you need to be careful about recovery and resale scams, and we’ll cover that in a future episode of Scams, Hacks and Frauds.