With an increased emphasis on economic value in air transportation, airlines are seeking out maintenance solutions that will help them keep planes safe without negatively impacting their bottom line.
This is good news for many airlines that have excess inventory on-hand.
The Aberdeen group estimates that the sale of spare parts actually makes up 8% of the annual gross domestic product in the U.S.
In the airline industry specifically, spare parts can continue to increase revenue up to 25 years after the sale.
Though selling in the aftermarket isn’t always the top money-making strategy that comes to mind, it can increase your profits and help keep your warehouse free for newer generation equipment, points worth considering.
Just as with any business venture, selling surplus aircraft supplies will require at least some investment in staff, time and resources.
Before embarking on this stage in your business’ development, it’s likely that your stakeholders will inquire about the return on this investment.
So, how do you prove consistent ROI for the sale of your surplus aircraft supply?
Responding to Need
Consumers of spare airline parts aren’t necessarily seeking a perfect process, but once a need has been established, the speed of your fulfillment can be a major selling point.
It’s human nature to keep going back to a company that can solve a problem quickly, so getting parts to buyers without significant delay can certainly increase your ROI.
One way to ensure that this happens is to properly manage your inventory.
Having a constant and easy to access record of what you have available will only benefit your organization.
An investment in post-sale support can also help to increase your ROI.
Having technical support available to buyers after the sale is equally important as pricing when consumers are seeking out spare parts.
The trio of quality, price and service will keep customers coming back in any industry, and the sale of airplane parts is no exception to this rule.
As users of the product that you are selling, your company already has a built-in expertise, another key benefit.
Applying a Unique Business Strategy
As lucrative as the after-sale market can be, the strategies used will definitely differ from those found in your current business model.
It can be beneficial to develop a menu of products and services to these unique customers.
While some may have a need to simply build inventory, others may have specific service needs, and a one-size-fits-all strategy may cause you to devote unnecessary resources to your after-sales department.
Segmenting your market may be business 101, but the process should be viewed differently when creating your after-market sales strategy.
Your marketing efforts will also differ for this arm of your business.
The quality of a product is sold differently than the quality of service, and if you take the same sales approach, you may be disappointed in the results.
The demand will be different and so planning and anticipating this demand must be approached differently.
One of the key challenges in the airline after-sale market is that it relies on unpredictable events and the need for repairs, and that means that you have to be ready to respond at a minute’s notice.
Especially if your company has an excess of spare parts, the economic potential of moving into the after-sales is enormous.
There is no doubt that this move will require a unique outlook by company stakeholders.
As you move forward with your efforts, it’s a smart move to carefully plan your approach.
Develop a solid inventory management plan, decide what resources you can and should devote to support and create a targeted business strategy, and you can increase your ROI and thrive in the aftermarket.