Enthusiasm and emotion can distort how you quantify value- explains Jay Mesinger. The Boardroom is not immune. With this in mind- how can you ensure you enjoy the value of Business Aviation long after the newness of the company’s asset has worn off?
Jay Mesinger is the CEO and Founder of Mesinger Jet Sales. With over 40 years’ experience in the... Read More
While watching your hometown 4th of July parade with its colorful floats- loud bands- clowns and laughter it is easy to be enthused. Once the parade winds its way through town and the excitement dies down- how do you rate the experience?
Last month we talked about the value of the business aircraft to the company. We mentioned the need for the Board to shout the value proposition to the shareholders and the stakeholders. We urged Directors to spread the message that aviation assets enable key employees to get out ahead of the competition and in front of customers. No doubt such interaction is mission critical to increasing the core business of the company.
We agree that Business Aviation is great- but is there a way to quantify the value proposition other than being a vocal advocate? Rather than simply being caught up in the excitement of Business Aviation- is there a way to monetize the value proposition?
QUANTIFYING THE VALUE
If there is no question that the aircraft enabled you to close a seemingly impossible sale- you could place a value of that situation. Or perhaps you know absolutely that customers were retained because you were able to get a service team to their locations quickly using the business aircraft. Monetizing those events would give you a dollar amount to use.
However- the real question is this: Can the value proposition be better estimated by measuring the increased number of customers called on and the number of sales calls made when your company has access to a business aircraft?
I believe that rather than being conceptual or focusing on just a few special situations- you can place an identifiable value on having a business aircraft by considering routine business activities. If you are in a small or rural area not serviced by commercial aviation there is no doubt that a business aircraft can save days of a sales person’s or executive’s time. Even if you are located in a city with well-established airline service- days can be saved by using a business aircraft to call on clients and move executives around the country (or world).
Comparing commercial service to business aircraft use- a company employee can easily call on three customers in three different cities in one day- rather than calling on one customer in three days. The ability to conduct business on-board a business aircraft while the executive is traveling to offsite meetings adds enormous productivity to the work day. Using state of the art technology in the area of connectivity for business aircraft creates the modern office in the sky.
This means that when the cabin door shuts and the flight takes off- the work day is not interrupted. Most commercial airliners are not equipped to enable continued use of PDAs when you are airborne- thus forcing the executive to use the precious minutes while taxiing into the terminal to read what could be twenty or thirty emails and make snap decisions regarding which warrants an immediate response- prior to reaching the gate. Such work compression leaves no time to think- respond and act presidential!
The value of using time productively and effectively is by no means conceptual. It is real. Moving through the world of business using a business aircraft allows you to move at the speed of business. This capability is a real tie-breaker when competing against someone who is calling on one customer in three days- answering emails late with shoot-from-the-hip information- or delaying important responses until the next business day.
Rather than simply expressing the excitement of using a business aircraft in general terms- take time to observe and quantify how your company- your executives- your sales and service team use Business Aviation by calling on more customers- staying ahead of the competition- and winning and retaining important business. I think you will quickly see that you can validate the value proposition of business aircraft and enjoy the parade well after the roar subsides.
Do you have any questions or opinions on the above topic? Get them answered/published in World Aircraft Sales Magazine. Email feedback to: Jack@avbuyer.com