Dear Flight Simulator Professionals,
it´s been over one year now since we have launched our platform Flight Simulator Trader and we would like to share our experiences with you. What we have done and what we would like to see in the near future.
The key facts in short:
Successful Sales since launch of the platform one year ago:
- FSTD units: 5 x (4 x fix base FNPT/ 1 x FTD),
- FFS: 0 (5 negotiations currently in progress for used and new devices alike)
Successful FSTD Service Supports since launch of the platform one year ago: 12
- 4 x Relocations (3 x fix base FNPT/1 x FTD) in Europe
- 2 x FSTD Sourcing, Evaluation & Negotiation
- 1 x Sales Contract Preparation & Buyer-Seller-Interface
- 3 x EASA PART-ORA.FSTD Documentation to support FSTD manufacturer and ATO
- 1 x Consulting on QTG Preparation
- 1 x Consulting on Simulator Design (fix base)
- 1 x FSTD Evaluation (AATD/ FAA-Regulations)
Successful EASA ATO Approval Assignments via Partner FTD Consulting: 15
Most valuable Customers: Swiss Aviation Training, TFC Kaeufer & LVB (ATO Germany with 130 branches, 300 aircraft, 600 students per year).
Simulator Listings Total: 32
Conversion Rate Contact: 20%
Conversion Rate Newsletter: 7,2%
A really heavy boost of FSTD buyer leads from launch FTD Consulting to launch FST per year.
What we have learned:
Well, the first year seemed like gathering experience and seeing how the market would react towards our concept. In short,
- Pre-Concept pays off
Working with clients on a pre-concept even before looking into device selection proved valuable for both sides. We accounted for feasibility, financial sustainability, independent concept evaluation and recommendation for both new and used devices alike.
- New versus used devices
Buying used devices is also convincing to customers who initially intended to buy new FSTDs. If customers intended to buy new devices we gave recommendations and helped them improving their device by conducting pre-evaluations and/ or factory acceptances.
- Europe & EASA = a must
Selling of used devices in Europe heavily depends on the ability for EASA qualification.
- New Devices/ Used devices and ROI
A cost-effective new device can make a solid business case, but even used FSTDs have their residual value and help achieving ROI scenarios easier (if buying the correct FSTD, this will add to the successful business case of your flight school operation as hourly rates & expenses are so much lower in an ever increasing training cost environment).
- Warranty & Services for everyone
Warranty and service is a major point when buying new & used devices. We help customers to address and negotiate these topics with manufacturers, if these items are not covered.
- Proven reliability
Buying used FSTDs mostly ensures that technical deficiencies have been rooted out as hold items lists have been completed. Ergo, devices have improved accordingly. If buying new devices, we can root out deficiencies with pre-evaluation & factory acceptances.
We do believe in cost-efficiency. Ergo, we are working on getting more support by manufacturers and customers alike:
- Used devices:
We schedule a FST sourcing program for late 2014, early 2015 to ensure the following:
- Receiving more device listings or pre-notification about intended sales in the future.
- This will enable us to react more efficiently for both sides (seller/buyer) time-wise and will provide financial benefits for both sides (continuous training, residual value, down times, storage cost, etc.)
- New devices:
As we receive an increasing number of requests for new simulators, we decided to:
- Act as independent consulting agency
- Offer beneficial service packages (buyers & seller alike)
Posted: August 27, 2014