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Hello, Jake Huling here with aircraft sales advisor i'd like to welcome you to the
first in a new series of short reports I'm calling
nine steps to successful sale or purchase of your plane, my reports quite simply
are designed to give you what you need
when you need it
and without the hassle of contacting a broker
In these reports i'm going to give you
advice and information, a lot of which the industry doesn't want you to know about
and how to use that information to navigate your way to a
successful sale or purchase of your plane
I like to keep my reports as short as possible so let's get down to business
let's talk about complaints
the top complaints in fact and frustration I here
from my clients
customers
and new contacts
pretty regularly
to make matters worse these complaints seem to be the same weather folks are
buying or selling a plane
the number one complant and frustration i hear
is that people don't
don't trust the system
and they deffinitely don't trust brokers
they don't believe the information they're being given
is accurate or for their benefit
they believe brokers are out to only help themselves and they will say just about
anything they think you want to hear
in order to get their next sale
the number two
frustration complaint here
usually goes something like someone will call in and introduce themselves and in a
very frustrated tone say,
all i'd like to do
is get some information about the market, i'm not sure what to do it yet
and no one is willing to give the information I need, they all want me to sign
a contract
before their willing to help
which leads us to the reputation of the industry
and it's sad to me that the industry has this reputation because it really
doesn't have to be this way
now, don't get me wrong there are good men and women in this industry i work
with them on a regular basis the problem is that they and I are far outnumber
by those who think that that's way
to do business is to
think of themselves first instead of their client or customer
I take a totally different approach
so before we go any further
let me explain how my approach is different than
waht you've probably seen out there
You see, I believe you should be given up front
for free and initally with no commitment, all of the information and advice you will
need to be able to make an informed and comfortable decision about buying or selling
your plane
what this also does it gives you and the broker a chance to work together
let me give you an example of why that's important
take my approach,
will work for you
maybe and maybe not
but how well you know if all i wanted from you was a signed contract upfront
before we ever even got started
next let me explain a little bit more
about my approach
i really believe
that if you care about your clients and customers and you really care about them
and their situation and what's best for them
you don't have to worry about yourself because you'll be takin care
of in the process. The industry however is afraid that if they give you
information up front
you will take that information go somewhere else but i believe if what
you're offering a customer or client is of value then
why would they go anywhere else
commissions
lets talk about commissions because that's a big deal in a lot of people have
questions
about what it fair commissions is or what a standard commission is and is there one in the industry
well first off let me tell you that no there really is a standart commission
in the induistry
brokers will typically make their money
one of two ways
the number one way is they will inter into an agreement with you
and have either a fixed fee
they will get on the total purchase price
of the plane that you buy or sell
number two is they will get in between you and the person buying your
plane or selling the one you want I'll explain howthat one works in a moment
it may surprise you to know that i would recommend the first to approach
why is that because it gives you a chance to not only no what the brokers
making
but to also have a say in how much
the broker is making
i'd also recommend especially
if you're selling to go with a percentage based commission
that way the broker
has the personal stake and how much your plane is sold for
it's not jsut a flat fee they get regardless of whether the plane sells for a highe or low price let me
give you a little more information about that second approach and how the broker makes money
this happens
usually when a buyer or seller decides they really don't want a broker involved
and that is usually because they don't want to pay for one and
they feel that this will save them some money
the problem and the danger is there is
almost always a broker involved
and i can tell you when there's a broker involved
there's going to be a commission involved
the only difference is with this approach
you don't know how much they're making and that means you also don't have a say in
how much the commission is
so who's really selling your plane you see
what happens is a broker will come to you and say
they would like to buy your plane
but what they don't tell you is they really don't have an interest in buying it for
themselves
they found a buyer for your plane and they will negotiate a price with both you
and that buyer
once they get an offer from the buyer they will present it to you for a lower amount, it looks
like they're buying it because
the offer is in their name but it's really just changing hands with a
mark up that usually a lot
more then what the commission would have been
and also, think aobut this, not working for you the same thing happens when you're
buying a plane
if presented as if its the brokers plane with their contact information on it
they don't however own the plane or represent the owner what they are
doing is taking the price
the real woner is asking marking it up and presenting it to you as if it's their plane
same as before only now you're just on the other side one of the big problems with this
approach and again
it's the same as before you know what the commission is until after the sale
if at all and if you do find out how much it was
you probably won't be very happy when you learn how much was
how much better to know about and have a say in not only the amount of the
commission
but to also have that person working directly for and representing you
instead of themselves
I also recomend you find someone
who doesn't charge anything up front and only gets paid at the end
and only if they come through for you with the sale or purchase of your plane so just imagine
not having to pay someone
unless they dilever and come through for you
a lot of people in the industry think that's crazy way to go
but i believe if you really can and will do everything you say why would
would you be afraid of that
last but not least before you know how much you will pay in
commissions
your going to have to make some decisions
if you're selling you need to determin the value of your plane
and you need to
know how to do that and how you want to bring it to market if you're buying you'll need
to also be able to determin the fair market value of a plane you are interested in
and you'll need to decide the best way to go about finding you plane and how to bo about that search
so in my next report
we're gonna talk about how the value of the plane is determined
and it may surprise you know how the industry goes about that. there are some good
things and there are some bad things that you need to avoid
we'll also talk about commission
and percentages commission rates
and what they should be and should not be
so thats in the next report
thank you so much for joining me on this first report in a new series
called nine steps to a
successful sale or purchase of your plane this is Jake Huling from Aircraft Sales Advosor
I look forward to seeing you on the next one