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A Deal I Lost, And The Call That Came Back

It's never a good feeling to lose a deal, let alone lose one on price. One that stung more than most was a relocation for an executive from North America back to Pakistan, followed by another transfer back to North America.

The trip was last minute and had to go as soon as possible. We knew this market really well, so we laid out our options and went through every way the trip could be done. Would the client get the most value from two different planes, or the same one the whole way? Which operator had experience getting permits at the last minute? And most importantly, who had the crew to make this trip happen, so crew swaps at the fuel stops would run smoothly?

We sent our proposal and explained why an experienced, well-run operator mattered so much on a trip like this. Shortly after, we got the bad news that the deal had gone elsewhere. That never feels good, especially after all the work it takes to put together the full picture on a trip like this.

Two days later, we got a call back. The client was sitting in Ireland. The plane they had booked was stuck on the ground because the operator couldn't get the overflight permits for the Middle East. Naturally, you feel a bit validated, but you also feel sorry for the client and the situation they ended up in. Thankfully, we earned their trust from there, the passengers originally flew back to North America with the original operator and we secured another plane to fix the whole mission two days later.

A lot of the time, a low quote is low for a reason. It can be an inexperienced operator, a less experienced crew, or an interior that doesn't get refurbished as often. That said, not every low quote is low for those reasons. There are plenty of fair low quotes out there that make complete sense. The trick is pointing out the real differences and explaining them clearly to the client, and that comes down to transparency.

In this case, the delay cost the client an incredible amount of time, money and energy to fix a very urgent problem. The cheaper quote ended up being the expensive one. That's why the conversations you have while the client is making a decision are the most important thing a charter broker will do.

When brokers get quotes from operators, you need to ask why they can operate at such a low number. What are they giving up compared to the operator based next door that's maybe 10% more? Sometimes it does make sense to go with the more affordable operator, and experience plays a big role in knowing when. But the more curious you are in that moment, the more successful you'll be.

Comparing quotes so they're apples to apples is crucial. Even quoting the same plane to your client from two different operators is really important, because the value can vary a lot. In the end, the cheapest number on paper only counts if the plane actually gets there. My job is to make sure the client knows what they're paying for before they choose, not after they're stuck somewhere waiting for an answer.

 

Author: Matt Hogan - Founder, Hogani Jets & Aviation Specialist.

 

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