Any aircraft owner is currently keenly aware of the ‘phone call or email that begins with “well, you know, it’s a buyers’ market“…This is true, to a point.

However, Aviatrade has recently proved that a buyers’ market can be very effectively turned into a sellers’ market.

The process begins with an understanding of every detail of the immediate competition…model year, hours, cycles, history, programs, cosmetics, upgrade status, current country of registration, owner predicament (very important) etc.

The next step is to properly articulate the market to the client (seller). Aviatrade is always amazed by the number of sellers’ agents who mislead their clients, either out of market ignorance or purposefully hiding critical information, so as not to be the bearer of bad news.

It is not enough to know listed asking prices or ‘make offer’ prices (provided by other sellers’ agents). An effective and successful sale can only be conducted after recent selling prices have been established. Invariably, this process can only be accomplished via a trusted and informed network…this latter factor is absolutely key to establishing a selling price in a buyers’ market.

For example; Aviatrade is aware of a significant delta between published or suggested asking prices and actual selling prices in the G650/G650ER market. Aviatrade’s recent representation, on behalf of a Gulfstream G650 owner, turned all of the aforementioned information into a very positive result for the owner…the letter of intent was signed within two weeks of the listing and this owner’s Gulfstream G650 is now starting its inspection process prior to completing the sale.

A number of brokers contacted Aviatrade with ‘probing’ offers that we knew were well-below current market (despite the lack of pre-owned sales in the G650’s and G650ER’s).

When the inevitable price question arose…Aviatrade was ready with the answer, “we have the best deal in the pre-owned G650 market…check out the competition and call back”.

This market positioning requires consummate networking and groundwork and this recent G650 transaction would not have been possible without the critical market information that was provided to the owner….and, more importantly, acted upon by this owner.

The key to reversing the market positioning is to get ahead of the price curve. Prices are still dropping, therefore it’s important to present a convincing argument to a seller…..use a “Make Offer” sale announcement but make it clear to enquirers that the client (seller) is prepared to negotiate at or below the perceived wholesale price of the aircraft (This is where today’s G650 resale market is positioned)

This approach will flush out real buyers and thereafter the seller could well be negotiating with more than one buyer…..precisely the scenario that led to Aviatrade’s successful price negotiation for our client’s G650 !

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