JETNET Spring Newsletter 2010

Know More.In this Newsletter:• AreYouTrulyExcitedAboutWhatYouSell• UtilizeYourDatabases• Is“ContractualRelationship”anOxymoron?• TheNewDefinitionofInsanity• MarketViewpoint

Are You Truly Excited About What You Sell ByBradSugars|FacetoFaceSales|ActionCOACH

Are You Truly Excited About What You Sell

Weallknowthatsalesarereallyallabout“closingthesale.”Thereisnotasalespersonalivewhodoesnotuseavarietyoftechniquestohelpthembesuccessfulwithcustomers.However,Ibelievepassionisthemostunderratedandunderutilizedsalestoolinourarsenalbecauseitistoohardtomeasureandnoonehasfoundaneffectivewaytoteachit.

Passionisaneffectivesalestoolbecauseitisn’tartificialandcan’tbefakedforalongperiodoftime.Itisdisplayedinpeoplewhogenuinelycareandarewillingtotakethetimetoservetheirclientsinwhatevermannerisnecessary.

Passioninsalesisevidentwhenthecoachtakesthetimetolistentotheirprospectandattemptstoreallyunderstandwhatitistheyarelookingfor.Itisdisplayednotonlyinthequestionsthatareasked,butalsointhetoneofvoiceandbodylanguagethatisusedandthefollow-upthatisdemonstratedafterthesalescall.Coacheswhohavepassionareabletocreatelong-termprofitablerelationshipswiththeircustomers.Theyalsoroutinelybenefitfromreferralsbytheirexistingclientsand,onmanyoccasions,theseprospectscometothemreadytobuy.

Beforeyourushouttopracticeyourbodylanguageandtoneofvoiceinanattempttofindpassion,letmeaddthesecretingredient:heart.Passioncomesfromagenuinebeliefofwantingtohelptheclientinbothgoodtimesandbad.

Passioncanactuallybemeasuredinacoupleofways.Beginbyaskingyourselfthissimplequestion:“Whenthedayisoverandmyclientsarereflectingbackonthepeoplethey’veinteractedwithandtheactivitiesthey’vedone,dotheythinkofmeinapositivelightthatcontributedtothemhavingagoodday?”Itisimportanttoconsiderwhetheryourclientstrulybelieveyouarehelpingimprovetheirdayandtheirbusiness.Anotherassessmenttoolisfoundinanalysingthenumberofreferralsyouget.Referralsareanaccuratemeasurementofhowyourclientsviewyou.Iftheyhonestlybelieveinyou,theyrecommendyoutoothers.

Passioninsalesisunderrated.Therefore,yourabilitytogenuinelycareaboutyourclients,toshowaninterestinthem,andtoservethemwilldetermineyourlong-termbusinesssuccess.

QuarterlyNewsletterForAircraftDealer/Brokers&FinancialInstitutionsKnow More.

Volume2-Spring2010

JETNET LLC 101 First Street, Utica, New York 13501 USA www.jetnet.com

Utilize Your DatabasesByChrisBrogan

Apr 15, 2010 -

Lately,I’vebeenthinkingthatwehavetoomuchdata.Wecancollectdataallday:Websitestats,sentimentanalysis,surveyresults.Thethingis,ifweneveractonwhatwe’recollecting,thenit’sjustasbadasnothavingcollectedthedatainthefirstplace.(Forinstance,oneofmyjobsisasaprofessionalspeaker.)I’veneveryetprospectedmyemailnewsletterlistforwhetherIcouldfindspeakinggigsthere.WhenIfinallytooksometimetolook,IwasstunnedbythequalityofcompaniesIcouldreachwithmymessages.

I’mbettingyouwillfindsimilarsuccess,ifyoustartlookingatyourowninformation.

Your Email Database

Haveyouevergonebacktotrimoutthedeadwood?Haveyoueverlookedthroughtoseewhohasn’tbeencontactedlatelyoutsideofmechanizedmeans?Takealookthere,andmakeaquicklistof10peopletocontactTODAY.There’samethodtothisadvice:ifyoudomorethan10,youwon’tdoanythingpersonal.Ifyoudon’tdoittoday,youprobablywon’tdoit.Giveitatry.Ipromiseyou’llgetatleastonepositiveresultfromtheeffort.

Your Customer Database

Haveyoulookedatyourdatabaseofcustomerslately?Haveyoushuffledaroundhowyoulookatthemlately?Sortthembydollarsspent.Sortthembyhoursofcustomerserviceconsumed.Sortthembydifficultylevel.Sortthembytheirmarketsegment.It’samazingwhatyoucancomeupwiththeseways.

Continued on next page

The New Definition of Insanity: Doing the Same Things with Less and Expecting the Same Results!

Remembertheolddefinition:Doingthesamethings,expectingdifferentresults?Nowitseemsworse.Withcutbacksandtightcredit,mostpeoplehavelearnedtoworkharder,expectlessandjusthopethatitallturnsoutlikebefore!

Ifyouownyourfirm,andbuyfromorselltosmallbusiness,yourreactionisprobably,“Welcometomyworld!”or,“TellmesomethingIdon’tknow!”

QuarterlyNewsletterForAircraftDealer/Brokers&FinancialInstitutionsKnow More.

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Is “Contractual Relationship” an Oxymoron?ByStanYockey(contactsdysolutions@gmail.com|912-727-4034)

Foratleastayearandahalf,muchoftheworld’sbusinessandeconomicstabilityhavebeendramaticallyaffected.Obviously,businessaviationhasalsosufferedsetbacksfromseveraldifferentinfluences—bothdirectandindirect—includingnegativepoliticalandpublicperception,tightenedcreditmarkets,andthedifficulty(ifnotoutrightinability)ofsomemanufacturerstocopewiththecataclysmicdeclineinnewordersandtheresultingneedforreducedproductionrates.Concurrently,customerswithexistingordersbeganrequestingpaymentscheduleadjustmentsoroutrightcontractcancellations,becausetheyhadsignedcontractsbeforeobtainingfinancingwhichhadsincebecomeunavailable,becauseofthefearofnegativeperceptionfromtheiremployeesorthepublic,orbecausethecustomerorhisbusinesshadsufferedseverefinancialsetbacks.

Whateverthecause,theseeventsseverelystrainedboththemanufacturers’financialwell-beingandtherelationshipsbetweenthecustomersandthemanufacturers,which,insomecases,hadbeeninplaceformanyyears.Facedwiththepotentiallycatastrophicimpactoftheseeventstotheirbottomlines,businessaircraftmanufacturershavebeenfacedwithsomebasicdecisions:Doweenforcethestrictlanguageofthecontract,doweagreetosomecustomers’requestswhileseekingoffsettingconcessions,ordowestaythecourseandattempttoweatherthestorm.FormerpresidentGeraldFordoncewroteindescribingthequalitiesofgoodleadership:“Nogoodleaderapprovesshort-termbenefitsiftheyunderminelong-rangepurposes.…[A]goodleaderconcernshimselfwiththenextgeneration,notthenextelection.Ifhelaysthepropergroundwork,hecanbesurethattheproperresultswillbeforthcoming.”Appliedtotheearlierdecisionsthebusinessaviationmanufacturershavehadtoface,PresidentFord’smessageisclearthatthemanufacturerwhotookahardline,blackorwhitepositionwithcustomersforrequestingrelieffromhiscontractualobligations,eveniftherequestwascompletelyselfishandunmindfulofthemanufacturer’sstress,providedonlyshort-termbenefitsandalmostcertainlycreatedlargerproblemsthatmayneverberectified.

Thenwhatthecontractsaysdoesn’tmatter,right?Ofcourseitdoes,butitsintentandthemethodofenforcementwhenacustomerrelationshipisatstakecanresultindramaticallydifferentresultsthanwhenthe‘letterofthelaw’isthesolebasisforcontractualdecisions.Certainly,eachpartytoacontractdeservestoknowwhatrightstheyhaveshouldsomethinggowrongduringthecourseofthatcontract.Thoserights,andtheresultingremedies,tendtoaddresscontractualbreaches,notrequestedchangesbasedonlegitimate(orperceived)needs,andthereisafinelinebetweenprotectingcontractualrightsandpreservingarelationshipthatwillgarnergoodwillforyearstocome.

Nowthatbuyersarereappearing,ourchallengeasconsultantsandbrokersistoproperlyguideourclientsinselectingthemanufacturerwithwhichtodobusiness,andtoensurethattheresultingcontracteffectivelyaddressesboththeintentandthelikelyrealityintheeventofanothermarketdecline.Weallknow,orhaveaprettygoodidea,whichmanufacturershavereliedmoreontheletterofthelawthantheimportanceofcustomerrelationships.Accordingly,ourresponsibilityistoeithersteerourclientsawayfromthosemanufacturersordoeverythingpossibletoallowforreasonableadjustmentsshouldtheneedarise.Ifthemanufacturerisunwillingtoagreetosomeflexibilityinthefaceofcertainkindsofproblemsourclientsaremostlikelytoencounter—reducedcashflow,unavailabilityoffinancing,etc.—wemust,atleast,alertourclientsthattheywillnotreceiveanysympathyshouldanyofthesekindsofissuesarise.

Manufacturersshouldheedthisadviceaswell.Thatis,considerhowmanytimeswe’veheardaboutcustomersortheirrepresentativescomplainingwidelybecauseofaproblemwithamanufacturer,whetheritinvolvedadeliveryschedule,productsupport,a‘free’componentorsoftwarerelease.Somethingrelativelyminorcantakeonalifeofitsownifnotdealtwithquicklyandeffectively—oftenpossiblewithoutconcedingtotheoriginalrequest—andbecomeapublic-relationsnightmareifthecustomeriswellconnected.Everheardthephrase,“Thesqueakywheelgetstheoil?”Evenifitdoesn’tgettheoil,it’llmaketheridemiserable!(Thesesamecustomersare,bytheway,frequentlythe

Utilize Your Databases Continued from front page

Ioftenfindsomethingfromjustthesimple“sort”featureinmostdatabaseapps(orinMicrosoftExcel).Forinstance,I’vestartedsortingmydatabasebystatewhenI’mgoingtospeaksomewhereprofessionally,andIsendoutinvitationstopeoplelocatedinthestateorprovincewhereI’llbe.Bingo.Magicopportunitiestotalkbusinessortojustsharesomefacetime.

Twitter

Whyleaveittojustyourcurrentclientsandprospects?You’reonTwitter,buthaveyouspentanhourlatelyonTwitterSearch?Gothere,pluginafewsearchtermsthatwouldrelatetoyourproduct,yourcompany,yourservice,yourlocale,andseeifanythingactionablejumpsout.I’venevernothadsomeonereportsuccessaftersearchingaroundTwitterforanhour.Never.

Your Web Site Stats

WhatyoucangetfromGoogleAnalyticsoratoollikeHubSpotwillteachyouabouthowpeopleinteractwithyourwebsite.Aretheynotspendingmuchtime?Dotheynotclickonthelinksyouneedthemtoclick?Areyougettingmuchresponsetoyourcallstoaction?It’sallthereinthesitedata.Evenifit’sgobbledegooktoyou,someonewillbeabletohelpyoufigureitout,andyou’llbesurprisedbywhatyouuncover.

Not Revolutionary, But Necessary

It’snotrocketsurgery,asmyfriendsinBostonsay.Butatthesametime,it’soneofthosethingswedon’tdo.Wedon’tjustspendsometimeinthedata,evenanhour,andwedon’tusethoseinsightstofigureoutwhatelsewecanbedoing.Ithinkthere’svalueinthis,andwhenwedon’tgiveitatry,we’remissingachancetogrow.Whatdoyousay?Chris Brogan is the New York Times bestselling author of the NEW book Social Media 101. He is president of New Marketing Labs, LLC, and blogs at chrisbrogan.com.

JETNET LLC 101 First Street, Utica, New York 13501 USA www.jetnet.com

Volume2-Spring2010

samecustomerstowhomthemanufacturerturnstomakeapaymentalittleearlierthanscheduledortakeadeliverytohelpthemmeettheirquarterlyperformancenumberseventhoughtheaircraftisn’tquiteready.)

Ironically,companiesthatthriveonstrongcustomerrelationships(i.e.arecommittedtoestablishingandmaintainingthoserelationships)tendtohavecustomerswhomakefewerrequests.Theyalsotendtohavebettersuccesssaying“no”torequeststhatwouldcreateoperationalorfinancialproblemsoropenthedoortoother,moreproblematic,requests.InthecontextofPresidentFord’squote,thinkingabout“thenextgeneration,[ratherthan]thenextelection”helpsthesecompaniestakethelongviewwhentheyencounteracustomerrelationshipproblem.Similarly,consultantsandbrokersshouldtakethelongviewinbuildingrelationshipswiththeirclients,helpingtoensurethatclientsunderstandthetemperamentofamanufacturer,andguidingtheclient(and,totheextentpossible,themanufacturer)throughanydifficultiestoarriveatamutually-constructiveresult.

Thereisnoquestionthatthecurrenteconomiccrisis,spanningthemanyfacetsofglobalbusinessithasaffected,hasfarexceededwhatanyonecouldhaveforeseen.Regardless,ithasalwaysbeenthecasethatbusinessaviationiscyclical,soreactingtotheimpactofthedownturnisreallyonlyamatterofdegree.Unfortunately,manybusinessaircraftmanufacturers(andbrokers,consultantsandfinanciers,forthatmatter!)spooledupproductionrates,headcount,andmarginexpectationsinresponsetotheboomenjoyedbynearlyeveryonefrom2004/2005through3rdquarter2008,sotherapidandseverenatureofthe“crash”weallexperiencedinlate2008through2009(and,inmanycases,throughtoday)wastraumaticforeveryone,includingmanyofourcustomers.

Take,forexample,thebank-ownercustomerwhosebusinesswasnearlywipedoutuntilhiscountry’sgovernmentsteppedinwithbail-outmoneytopreventanevenmoresevereimpactontheeconomy.Whenheapproachedthemanufacturertotellthemthathestillwantedtotakedeliveryofhisaircraftbutwantedtodeferdelivery(andtheprogresspaymentsinhiscontract)untilarecovery—whichhefeltcertainwouldhappen,eventually—didthemanufactureragreetotrytoworksomethingout,ordidtheytellhimthattheycouldn’torwouldn’tbecauseothercustomersmightaskforthesame“favor?”Whatabouttheventurecapitalistcustomeryou’dbeenhelpingbuyaircraftforthepast20years,whocalledtosayhe’dlostasubstantialportionofhisnetworthandneededtopulloutoftheaircraftorderyouhadhelpedhimplace?Hefeltcertainthathewouldrecoverandwouldbebacktobuyanotheraircraftassoonaspossible.Didyousuggestadeliverydeferralorapplying(atleastaportionof)thecontractualliquidateddamagesinthecurrentcontracttotheinitialpaymentforthatfutureaircraft?Inmanyways,thepastbehaviorofmanufacturersandtheconsultant/brokercommunityisasmuchapartofthepurchasedecisionasfinancialandmissionrequirements.

Thescenarioswe’vefacedoverthesepast15to18monthshavebeenmanyandvaried,buthoweachofusrespondedtothechallenges,regardlessofhowtoughithasbeen,willalmostcertainlyplayadirectroleinhowquicklythemarketrebounds.First,becauseasthedomesticandworldeconomybeginstorecover,ourcustomers,includingmany“captainsofindustry,”willfrequentlyleadtherecovery(andwantouraircraftastoolstomaintainthepaceofthatrecovery).Second,becausetheywillwanttodobusinesswithcompaniesandpeoplewhoworkedwiththemwhentheyneededasympatheticear.

Andtheirfriendsandcolleagueswilljointhem,stayingwiththemanufacturerandtheconsultant/brokerwhoworkedthroughthedifficulties,orshunningthosewhorefusedtodoso.Ourindustryissmallandclose-knit,andeveryoneseemstoknowabouteveryoneelse’ssituation,bothgoodandbad!

Sothequestioniswhetherthemanufacturerwithwhomyouchoosetodobusinesshasbeenwillingtotakeonthechallengeofworkingthroughdifficulttimeswiththeircustomers,orhunkereddownunderthelanguageofthecontracttosurvive,relyingonthenourishmentofterminationpenaltieslikeanOlympicathletelivingonsugarcubes.Yes,thecontractshouldprovideappropriateprotectionshouldsomethinggohorriblywrong,butthatprotectivelanguageshouldnotbeusedasanexcusetodismissthevalueandimportanceofahard-earnedandmuch-cherishedrelationship.

“Companiesdonotgrowandsucceedbecauseofafewexecutives,butrathertheysucceedbecauseallemployeescontributeasateam.”

John Sammon, PAR Microsystems

Looking to the Past

Dependingwhoyouask,mostagreethemarketwent“negative”sometimein2008(turbopropsandhelicoptersfollowedasimilarcourse.)

Aftersome5yearsofrecordsalesandrisingaircraftvalues,thebubblefinallyburstamidaworldeconomiccollapseandbankingcrisisofhistoricproportions.

May2008waswhentheresalemarketdemonstrateditwasinobviousperil.Withjetmarketup88airframesor4.68%,thelasttimethejetmarketwasunder2000aircraft,andthefirsttimeitexceeded10%ofthefleetforsale.

October2008sawanincreaseof245airframesforsalefromthepreviousmonth,asinglemonthincreaseof10.39%.

MARKET VIEWPOINT

Source: JETNET Evolution Market Summaries

Know More. QuarterlyNewsletterForAircraftDealer/Brokers&FinancialInstitutionsKnow More.

Volume2-Spring2010

JETNET LLC 101 First StreetUtica, New York 13501