[ Volume 4 - Spring 2012 ]Quarterly Newsletter For JETNET Subscribers

Know More.

JETNET LLC 101 First StreetUtica, New York 13501

In this newsletter:• Behind the Scenes: JETNET iQ Summit

• Retail Sale Transactions by Weight Class

• Pre-Owned Business Jets and Business Turboprops Trending Up

• JETNET “BigPlanes” Comparative Facts

• JETNET Profile: Lisa Carnevale

• How to Network Like a Pro

• The 7 Most Common Lies Customers Tell

Pre-Owned Business Jets and Business Turboprops Trending UpThe 12-month moving total trends for both pre-owned business jet and business turboprop aircraft retail sale transactions from January 2004 to July 2012 are illustrated in the chart above.

As of July 2012 the business jet retail sale transactions are 4.2% below the peak set in February 2008, and down 12.8% for business turboprops from the peak also set in February 2008. These are sharp rebounds from the 2009 lows and are good indicators that the correction process is in motion. However, in the past 6 months of 2012, business turboprops have remained flat based on the 12-month moving total.

Quarterly Newsletter For JETNET SubscribersKnow More.

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

Behind the Scenes: JETNET iQ SummitThe 2nd annual JETNET iQ Global Business Aviation Summit, “Igniting Ideas. Provoking Change.” in June in New York City brought leading industry thought leaders from OEMs, banks, financial institutions and brokers together with aviation professionals looking to sharpen their view of the industry’s future. Bill Garvey, B&CA Editor and Paul Cardarelli, JETNET Director of Marketing & Sales, were panel moderators. Lucia Frontera, JETNET Director, Research led the opening presentation on her team, followed by Rollie Vincent, JETNET iQ Creator/Director, on the latest JETNET iQ Survey results and forecast. Susan Sheets Brogan was the Summit Chair for this well-organized event that ran like clockwork throughout the day. The Keynote speaker was Jeffrey Shane, Partner, Hogan Loveliss, who completed five tours of duty with the U.S. Department of Transportation. Jeff spoke about election-year implications for business aviation. Jim Taylor, Vice Chairman, The Harrison Group, spoke about the “one percent”. Sonia Greteman and Jennifer Szambecki of the Greteman Group spoke on “From Bulletins to Bytes – A Look at Aviation Marketing’s Past and Future”. Tulinda Larsen, Principal, Nexa Capital spoke on “Government Use of Aircraft – Taxpayer Value Perspective”.

Retail Sale Transactions by Weight Class

In the first seven months of 2012, there were 1,428, or 7.1%, more pre-owned business jet retail sale transactions than YTD 2011. Both Heavy and Light Jet categories are showing double-digit percentage increases YTD in 2012 compared to 2011, at 18.3% and 11.8% respectively. Both the medium and VLJ categories had few sales transactions in the YTD 2012 compared to YTD 2011.

[ Volume 4 - Spring 2012 ]

JETNET “BigPlanes” Comparative FactsJETNET now offers JETNET “BigPlanes” for commercial airliners. The table shows the comparative number of aircraft in operation and leased between commercial, turbine helicopter and business jet market segments. The big takeaway from the market segment comparative table is that leased commercial airliner jets comprise a much larger number (more than 8,800) and percentage (35.5%) of aircraft than either the in-operation turbine helicopters or business jets.

Source: JETNET LLC August 2012

How to Network Like a ProBarry Moltz - Small Business Speaker, Consultant, and Author

Business people network a lot. Unfortunately, most of it is a total waste of time. They spend a lot of their time at networking events talking to people who will never ever be a prospect or influence a customer to buy. They randomly go from person to person and event to event “hoping” to bump into someone that is valuable to their business. Even worse, many people just use it as an excuse to get away from the office.You can, however, make the most of networking events and make truly meaningful—and profitable—connections by following some strategic advice.

Before you go (30 days ahead)Preparation is the key to making any business-networking event productive and profitable. Don’t expect to just show up and use your “charm” to woo prospects into wanting to buy. This urban myth does not really work consistently. Instead, here is an alternate strategy that is always successful.Write down your primary and secondary business objectives for attending the event. Is it to meet new prospects or to close existing business? Do you want to learn more about the industry or get closer to the people you already know?Find out who is going and contact those people ahead of time. Many events are so big that just because a person is there, doesn’t mean that you will bump into them. If the event has more than 200 people and takes place in more than one room, set a specific date, time and place to meet your contacts. Ensure that you have cell numbers if anything goes wrong.Use social media to connect before the event. Go to the conference’s Facebook page, LinkedIn discussion group or use the Twitter hashtag to have conversations with other attendees before arriving on site. This will give a big head start in your networking and relationship building when you meet them IRL (in real life).Practice your elevator pitch. When someone asks what your company does, practice an exact 15-second reply. It should state the pain your business solves and whom you solve it for.

At the eventConfirm meetings already scheduled as arriving on site. This will ensure there are no missed opportunities with the meetings already set up or last-minute schedule changes.Seek other people at the event that match your networking criteria. Listen for other prospects that are similar to the profile of the people you went to the conference to meet. This can be through questions that are asked in session or people you meet before and after each session. Ask people you already have a relationship with at the event if they know others that match the profile of prospects you want to meet.Be open to changing course if the strategy doesn’t work or you acquire new information. Just like in daily business, strategies may need to change. If you are halfway through the event and your strategy is not yielding results, than pivot in another direction.

Back at the office Within a few days, reach out to the people you met. Remind them about your meeting and your common interests. Always offer to help. Do not try to sell them anything.Keep them out of the business card graveyard. Enter their name into your contact management system and set a follow up a month from now.Always give value. Remember, we can’t sell anything to anyone. We need to be there when people are ready to buy. Build trustful relationships by sending valuable information that is not about selling your products. In the long term, people buy from whom they know, like and trust.

JETNET Profile: International Research & Sales Specialist Lisa CarnevaleThe first in a series of JETNET staff profiles to provide insight into the way we find solutions for you every day.

Lisa was hired in 1995 as a Spanish/Portuguese aircraft researcher. She was trained to enter specification data and soon joined the Quality Control team. She continues to serve in each of these roles today. Lisa participates in Researcher

interview and training, works in marketing and sales, and is our International Research Team Leader, responsible for the instruction and support of two research teams. She holds a BA in International Relations, and can speak, read and write Spanish and Portuguese.In 2000, Lisa relocated to California to manage our West Coast office, and was responsible for hiring, training and managing new researchers. She returned to New York in 2001. On a typical day Lisa receives 50-60 priority emails, delegating some to team members. She also fields phone calls from customers needing assistance, and participates in sessions to improve JETNET service.Lisa’s global research focuses on 25 Spanish- and Portuguese-speaking countries (and their territories) across three continents.In addition to the NBAA & AIE Conventions, Lisa has attended conventions such as LABACE (Brazil), Helitech (Portugal) and Asociación Latinoamericana de Aeronáutica (ALA-Miami), exposing an international audience to JETNET’s global presence.Lisa works diligently to confirm accurate information from the most reliable sources. This includes calling and emailing contacts; cross-referencing industry publications, aviation and company websites; reading blogs; and participating in online forums. Lisa believes her team is exceptionally effective because the majority of them have been working together for years. “Our skills balance each other,” she says. “We’re like a family. Our philosophy of ‘Know More’ means we’re always improving based on our customer needs and feedback.” Lisa is married with two children. She enjoys cooking, studies architecture, and enjoys sports, primarily tennis, soccer and cycling.

Quarterly Newsletter For JETNET SubscribersKnow More.

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

The 7 Most Common Lies Customers TellExcerpted from an article by Mike Michalowicz, Author of The Toilet Paper Entrepreneur and founder of multiple multimillion-dollar companies. He is a nationally recognized speaker on entrepreneurial topics and is the CEO of Provendus Group–a consultancy that helps companies whose growth has plateaued. You can read Mike’s blog by visiting his website at MikeMichalowicz.com.

About two months ago I had coffee with one of my closest friends. He was all hyped up, and it wasn’t because of the caffeine injection of a triple espresso. Well, maybe that was part of it. He was jittering with excitement because that morning he had received the call he had been waiting for: a new customer (ahem, prospect) informed him that their new project together was a go! That is, once the prospect got the sign-off from his team.I was excited for my friend, but having gone down the road of broken promises a few times before, I asked a few questions.“This guy who just gave you the verbal commitment, what is his title?”My friend responded, “Not exactly sure, he’s an administrative guy.”That was the first red flag.“Who else did they consider for the project?” I asked.“No one!” he exclaimed. “That’s the best part. We are shoo-in!”This was the second red flag—a major one.And then I asked the most important question: “How urgent is their need?”“I would say they are near desperate,” he said. “They have been waiting two years and can’t push this off any longer. If they don’t do this project now they are toast.”Red flag number three.So why, you may ask, are all these seemingly positive aspects warning signs? Because customers lie. Prospects lie, too, for that matter. In fact, you can use “customers” and “prospects” here interchangeably because they both lie in the same way.Before I show you how they lie, let me explain why they lie. First of all, they lie because they are human. As humans, they are embarrassed, ashamed, trying to avoid offending you, to gain control, as a power play, or because of the million other reasons we lie. People are people.And let’s not forget that no one is beyond lying. Everyone lies. Everyone. Not just your children. I’m talking about your customers, friends, you, me—even Mother Theresa (last time I checked, she wasn’t anyone’s mother). All kidding aside, lying is a fact of life, and knowing this gives you the ability to find the truth behind the words, which is critical to business success. Now for the how part. Here are the most common ways in which customers (and prospects) lie to you.1. “I think your service is great!” The next time a customer tells you she thinks your service (or product) is great, she is probably lying. It is socially inappropriate to tell someone else they are bad at what they do. Instead of risking offending someone, you just pretend not to see that fuzz ball in her hair or booger on her face and simply say, “You look great.” You don’t want to hurt feelings, so you lie. And your customer is no different. They say you are great and then never use your services again.2. “You got the project!” Have you ever gotten a verbal commitment that never materialized? This is the customer lying to you, even if he or she does not mean to. You only “get the project” when the contract is signed and the check is cut.3. “You’re the only vendor we’re considering.” This may be true, but there is always the option of leaving things status quo. Don’t be fooled by the lie that “there is only one choice.” There are always alternatives, including the “do nothing” alternative.4. “I need your references to make a decision.” This is a confusing lie, since the request for references is genuine. However, it is a lie for your customer to imply that she needs references to decide. References are not used to make a decision; they are used to support a decision that is already made.

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“If your contribution has been vital there will always be somebody to pick up where you left off, and that will be your claim to immortality.”

– Walter Gropius, German architect

The 7 Most Common Lies Customers Tell(continued)

5. “I am the sole decision maker.” Even when your customer is a company of one, she will have outside influencers (friends, spouse, vendors, clients, etc.) who can persuade her. Almost every “sole decision maker” does have the ability, solely, to say no. They are just lying about the part of being able to say yes alone.6. “I am weighing all the factors.” Everybody likes to believe they are completely logical. But no one is—not even Mr. Spock. Emotion is a major (perhaps exclusive) driver to decision making. When you hear someone say, “weighing all the factors,” recognize it is a lie. People can’t comprehend all the factors, nor can they put an even proper significance on the factors. Logic is less present then people think, and emotion is an under-appreciated driver of decisions.7. “We have an urgent need!” This lie is particularly confusing because urgency changes. The customer is not only lying to you, but also to herself. Urgency is relative to other urgency. For example, if a person has severe muscle pull in her leg, she may urgently seek rest on the couch. But if her house starts on fire, the urgency will no longer be about lying on the couch; it will now be about getting out of the house. The leg-pull will be completely forgotten (at least for now). Pain is the driver of many decisions, and the urgent need your customer tells you about today, may no longer even matter tomorrow.The lesson here is not that people have bad intentions (though some do). Rather, you should expect your customers and prospects to lie to you. Your job is to anticipate lies and determine what the truthful message is behind the lies.Oh, and about my friend: It has been two months since that coffee meetup, and he still hasn’t gotten the deal. But there is an upside to the story. He recognized that his prospect was likely (and unintentionally) lying to him, so he kept aggressively prospecting and didn’t slow down his sales efforts in the least. He landed four other projects in the meantime and is having an banner year—something I am definitely not lying about.

[ Volume 4 - Spring 2012 ]

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