My wife kept getting calls for a free 3 night cruise. Ok, I said, let's just go and check it out. Most of the people with us were minorities and the presentation was geared to people with lower education levels.
The venire of this company is seemingly in good stead. It's concept seems to good - from the surface - cheap affordable vacations. This the first ply - it conforms with the BBB, gets it credentials because it outer layer is legit.
Sunshine Vacations exploit minorities and people who have not been educated on the value of money over time. It lacks the inherent fiduciary duties good companies have dealing with under-educated consumer, thus its name is under scutenty.
Here is why: time valuation of money, end of product life cycle, and confusing details.
*Take the $12,000 investment for membership and juxapose the interest rate they are charging (up to 19% monthly) for 30 years versus investing the principle over the same 30 years (average 8% return) with annual compound interest, with no money down.
$68,400 - To Sunshine Vacations
$48,938 - To Self
*What product does anyone buy that lasts 30 years? I mean really! Car, boat, house, whatever... No one holds on to thing for 30 bloody years! Inherently the people know this and bank on you not really going beyond a few years, loosing the 12K. This is a hard play of nieve buyers - especially minority buyers.
*Too many details... Way too many details for the average bear that seem to get glazed over...
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