Let's use a simple example at Bay Lake Tower (BLT) vs. the Contemporary.
We have a family that wants to vacation annually during February break in a Deluxe Resort. They want to stay in a Magic Kingdom View room at either BLT or the Contemporary. They can pay cash every year or buy DVC.
Because it's during Spring Break, WDW rarely offers "Room Only" discounts. They don't need to; WDW is very popular during Spring Break. In 2014, a Magic Kingdom View room at the Contemporary costs $5337/week or $762/night. (For one ordinary hotel room!) Even if by a stroke of good fortune they somehow manage to score a 30% "Room Only" discount for Spring Break, it's still $534/night!
Incrementally, it costs Disney about $30/night to service that one room. With or without discount, Disney is making a boatload of money off that family in just one week (either $5127 or $3528, depending on whether they were able to obtain a "Room Only" discount.).
Instead, that family decides to take the DVC plunge and foolishly agree to pay Disney's ridiculous direct price of $165/point for BLT. It's going to take 183 points to stay in a comparable room at BLT, or a purchase price of $30,195. Disney is making some serious money off them without even a single stay.
After that, Disney collects an annual Maintenance Fee (MF) of $4.50/point. For 183 points, that's $824, a fraction of what the cash room costs and an even smaller fraction of what they paid upfront. So, even if you want to pretend that half the MF is "profit" (which it's not), Disney is making hundreds on DVC MF vs. thousands on a cash room vs. tens of thousands on the initial DVC purchase.
So, to your point @
GoofGoof , DVC's profits are
heavily frontloaded. With DVC, Disney sacrifices long-term profits for short-term profits.