How to Justify Corporate Jet Charter in a Down Economy

In this Business economy, there’s only 2 ways to help the ‘Bottom line’… (1) Cut costs and (2) Boost productivity.

And… there are only (2) ways to have your employees travel corporately… by air or by car.

 

I don’t have to tell you that the reason most companies don’t use Jet Charter service is the COST.  Trying to ‘Justify’ that ‘Luxury Price Tag’ to the people at the top is like trying to sell electric cars in Saudi Arabia. 

By perception, it’s just not a fit.

 

But here’s the business ‘Reality’.  If you ask any CFO what a 200K executive should contribute to the company, it’s going be more that 200K.  That’s called a ‘Productivity factor’… and everyone from the bottom of the org chart to the top has one.  And the more you make, the higher your factor is.

 

Companies are literally losing thousands of dollars per year by not analyzing the ‘Comprehensive costs’ associated with BOTH corporate Travel expense, Executive Productivity and Destination Logistics.

 

Regional Business Travel by Car

84% of U.S. business trips are regional and 80% of those are by car 200 - 400 miles driven one-way.

Are any of your mid-level or high-level executives jumping in a car to get from ‘Point A to Point B?’

Then I don’t have to tell you that spending 7-14 hours ‘On the Road’ just for 1 business meeting is not a good use of an executive’s time… especially if they are salaried in the 6-figures.

Here’s a real example.  Chartering a King Air Jet prop airplane for 3 executives traveling by car to 2 business destinations @ 200 miles per travel leg would save over 12 hours of cumulative Executive time. 

 

That’s a Time machine Savings with Employee Productivity Value of over $12,000… $12,736 to be exact.

And that’s not counting getting back the same day if they wanted to.

 

The Corporate Travel ROI Simulator can analyze all corporate travel by car utilizing your own internal ‘Business rules’… allowing you to quickly determine the most appropriate vehicle of travel for that particular business mission because of who is traveling and why.

 

Traditional Airline Travel

We all understand the inconvenience with traditional airline travel. 

And we all remember when the CEO’s of the Big 3 auto makers individually flew into Washington in their big corporate Jets to ‘ask for more money’.

Without doubt they ‘Didn’t have a clue’ from a Public relations standpoint.

 

But ‘Politics aside’, here’s the interesting part from an overall business equation.

Let’s take that same Detroit to Washington trip and compare traditional Airline travel to charter Jet travel in a mid-size Jet.

The Corporate Travel ROI Simulator compared 1st class airline travel for the GM CEO making 2.2 million in salary and having to make 1 intermediate stop on an 519 mile airline trip.

 

And the ‘Productivity Factor’ business rule is set to a multiple of (5.7), which is a conservative factor based on a mid-level executive.

 

In this travel scenario, the Corporate Travel ROI Simulator shows that there is a Time machine Savings with Employee Productivity Value of over $63,000… $63,426 to be exact.  

 

Just like a baseball club with a superstar making $150,000 per game… they don’t want that guy ‘Sitting on the bench’.  They want him out on the Field or in the ‘Batting box’.

 

Because when you recover 9 hours of a CEO’s productivity time… it’s something you can actually ‘put your Finger on’ and ultimately justify it.  And that goes for other executives that are higher up on the org chart, minimally in the 6-figure salary range.

 

And what about the PR move to appease the public outcry by succumbing to a 9-hour hybrid car ride on his next trip to Washington?

 

In this travel scenario, the Corporate Travel ROI Simulator shows there is a Time machine Savings with Employee Productivity Value of over $133,000… $133,235 to be exact.

 

Because you recover 12 hours of an executive’s productivity time… and Time truly is Money.

 

A ‘Business Tool’ for your Corporate Travel Decision Making Process

 

The NO COST Corporate Travel ROI Simulator allows corporate travel decision makers to sit down and use a Quantitative approach to corporate business travel total expenses using a blend of cost factors, travel logistics and employee Productivity factors.

 

Simply, it signals you when custom Jet Charter makes more ‘Bottom line’ business sense than tradition airline or auto travel… and most importantly… trips can be individually documented and legitimately ‘Justified at the TOP’.

 

And you set up your own ‘Business Rules’.  If and when the ‘Charter shoe fits’, it’s all handled by us.

And we have access to over 6,000 aircraft worldwide that can reach over 5000 airports in the U.S. alone.

 

Call 740.881.1691 or e-mail jeff@convertmoresales.com for an on-line DEMO.

 

The Big 3 Corporate Jet Travel; The Other Side

The other day I caught Robert Mark with Jetwhine.com being interviewed on Fox news.  He was attempting to portray the other side of the Auto manufacture’s corporate jet travel explaining the reality of a top executive’s time as it relates to using a corporate jet as a Business tool.

You can read his article about his stance on www.Jetwhine.com.  Here’s the post I submitted to add to his business reasoning.

 

Robert.  I saw you on FOX news today.  I found your counter-point to corporate business travel options refreshing to say the least.

You mentioned that Public Relations is ‘Perception’, but not necessarily ‘Reality’.

 

Let me take it one step further and break it down to a true cost including a ‘Productivity Factor’ which is a leveraged multiple of what a Company expects to get back from an employee.

Let’s take that same Detroit to Washington trip and compare traditional Airline travel to corporate Jet travel in a Lear 60.

This is a perception-buster ‘Quantitative’ look via a Jet Charter ROI Simulator comparing 1st class airline travel for the GM CEO making 2.2 million in salary and having to make 1 intermediate stop on an 519 mile airline trip.

 

The ‘Straight Travel Cost’… that traditional line item at the bottom of a Jet Charter Trip Proposal is nearly 5 times more in the Lear 60 than with traditional airline travel.  And that’s where the conventional na-sayers pitch a fit.

Because who can justify 5 times more in ‘Price’?  Especially in this economy.

 

But if you ask the stock holders about that same CEO’s ‘Productivity factor’… a leveraged multiple of what a company expects to get back from an employee, then there is more to the story when seeking a true ROI equation of Time, Flexibility, Productivity and Price = TRUE COST.

 

In this travel scenario, the Jet Charter ROI Simulator shows that there is a Time machine Savings with Employee Productivity Value of over $63,000… $63,426 to be exact. 

 

Because when you recover 9 hours of a CEO’s productivity time… it’s something you can actually ‘put your Finger on’ and ultimately justify it.  And that goes for other executives that are high up on the org chart, minimally in the 6-figure salary range.

 

And what about the PR move to appease the public outcry by succumbing to a 9-hour hybrid car ride this past Wednesday.

 

In this travel scenario, the Jet Charter ROI Simulator shows there is a Time machine Savings with Employee Productivity Value of over $133,000… $133,235 to be exact.

 

Because you recover 12 hours of a CEO’s productivity time… and Time truly is Money.

 

So, Robert, next time you talk to other CEO’s that are considering doing the ‘politically correct’ thing by jumping out of private jet business travel and jumping into a 4-seat hybrid, advise them to include ‘Quantitative’ values to justify a legitimate business tool.

 

Jeff Hardesty

President

SellMoreJetCharter.com

 

 

 

Airline versus Charter; Lear 31 Example

Here’s a good example of what a CFO of a company would see on your Jet Charter ROI Simulator if comparing last minute airline travel for 3 executives averaging 150K in salary and having to make 1 intermediate stop on an 800 mile airline trip.

The ‘Straight Travel Cost’… that traditional line item at the bottom of a Jet Charter Trip Proposal is 3 times more in your Lear 35 than with traditional airline travel.  And that’s where the conventional Jet Charter sales pitch stops.
Because who can justify 3 times more in ‘Price’?

But if that same CFO believes that each employee on the org chart has a ‘Productivity factor’… a leveraged multiple of what a company expects to get back from an employee, then there is more to the story when seeking a true ROI equation of Time, Flexibility, Productivity and Price = TRUE COST.

In this travel scenario, the Jet Charter ROI Simulator shows the CFO that there is a Time machine Savings with Employee Productivity Value of over $10,000… $10,581 to be exact.

Because when you recover over 35 hours of cumulative employee productivity time… it’s something you can actually ‘put your Finger on’ and ultimately justify it ‘When the Shoe fits’.
And when it does, it will be you that they call.

Try’Reversing’ the Traditional way of selling ‘Jet Charter’ as a Luxury ‘Price tag’… and by using a ‘Quantitative’ tool that includes an executives ‘Productivity Factor’.

That will bring more Jet Charter sales to you. 

Something that business CFO’s can ‘Put their Finger on’ to see when it makes more ‘Bottom line’ sense to go with you versus traditional car or Airline travel.

Jet Charter ROI Simulator Example with a King Air Jet Charter

Here’s a good example of what a CFO of a company would see on your Jet Charter ROI Simulator if comparing Regional car travel for 2 sales executives averaging 150K in salary and having to make drive a Sales trip of 300 miles 1-way.

The ‘Straight Travel Cost’… that traditional line item at the bottom of a Jet Charter Trip Proposal is 5 times more in your King Air than with traditional Regional car travel.  And that’s where the conventional Jet Charter sales pitch stops.
Because who can justify 5 times more in ‘Price’?

But if that same CFO believes that each employee on the org chart has a ‘Productivity factor’… a leveraged multiple of what a company expects to get back from an employee, then there is more to the story when seeking a true ROI equation of Time, Flexibility, Productivity and Price = TRUE COST.

In this travel scenario, the Jet Charter ROI Simulator shows the CFO that there is a Time machine Savings with Employee Productivity Value of over $12,000… $12,868 to be exact.

Because when you recover over 12 hours of cumulative employee productivity time… it’s something you can actually ‘put your Finger on’ and ultimately justify it ‘When the Shoe fits’.
And when it does, it will be you that they call.

Try to ‘Reverse’ the Traditional way of selling ‘Jet Charter’ as a Luxury ‘Price tag’… and showing you a ‘complete Methodology’ that will bring more Jet Charter sales to you. 

Something that business CFO’s can ‘Put their Finger on’ to see when it makes more ‘Bottom line’ sense to go with you versus traditional car or Airline travel.

But I have used an seo company before

We hear that alot. But the problem is that it does not relate to us. We offer a unique package that includes an ROI Simulator, sales training to teach you how to close leads, and lead generation targeted to the regions that your jet charter company operates in.

SEO is not lead generation. Search engine optimization should just be considered an incentive to sweeten the pot when you work with SellMoreJetCharter.com

Lead generation is a higher level of marketing that does not worry about just getting top 10 rankings and hoping that the traffic converts into a sale. We target localities paired with search phrases that bring in targeted traffic. In addition, we help convert the traffic into leads by providing easy to use forms that when submitted go to your email address with all of the needed information which allows you to contact that lead and close the sale.

Traffic from lead generation is actually searching for a private jet company and they are ready to fly now! Our job is just to make sure that they can find you easily.

If you have a past experience with an seo company then consider it old news. Contact us to learn why we are different and how we get you leads and show you how to raise the sale conversion rate.

How to Sell Jet Charter Into Corporate Travel

Ask any CFO of a business what a 200K Executive should contribute to the Company… it’s going be more that 200K.

That’s called a ‘Productivity factor’… and everyone from the bottom of the org chart to the top has one. And the more you make, the higher your Productivity factor is. Because if they are only covering their ‘Salary’… they won’t be around for long.

Last year 84% of U.S. business trips were regional and 80% of those were by car 200 - 400 miles driven one-way. I don’t have to tell you that spending 7-14 hours ‘On the Road’ just for 1 business meeting is a poor use of an executive’s time.

Especially if they are salaried in the 6-figures….

And everyone hates the idea of today’s airline travel with all the delays, cancellations, connections and overall hassles. It’s on everyone’s web site and charter sales reps continually talk about it.

So we can agree that everyone has heard the traditional ‘Marketing Pitch’ of Jet Charter and Air Taxi being more Flexible, more Convenient, more Controllable and more Productive.

But just talking about it does not help the CFO’s of the corporate world ‘justify’ it. Because when they look at the traditional Jet Charter trip proposal, they look at the ‘Line item’ at the bottom line of a Jet Charter trip proposal; the Cost of Jet Charter.

And your traditional Jet Charter proposal ‘Line item’ portrayed as is will always amount to more ‘Dollar Cost’ than the alternative corporate travel via Car and Airline. So Jet Charter trip proposal closing ratios are low and the traditional alternative corporate travel choices via Car and Airline are high.

But what if you had a QUANTITATIVE tool to promote your Jet Charter service around a total ROI business equation; Flexibility, Convenience, Productivity and TIME = True COST. A tool that you could proliferate out to selected Jet Charter clients and potential Jet Charter prospects.

An instrument that would show the CFO’s of the world the difference between perceived ‘Dollar cost’ and ‘Realized Savings’ when an executive’s ‘Productivity factor’ is included in the business equation.

Here’s an example using the model of regional car travel versus Jet Charter travel. Let’s plug in a few numbers into a Regional Car Travel versus Jet Charter Simulator.

Number of Travelers: 2
Average Salary: $150,000
Unnecessary Overnight expenses: $1,200 (2 Overnight’s)
Business destinations: 2
Mileage per travel leg: 200 / 200 / 200 (Round-Robin)

When we hit Calculate in this scenario it’s apparent that the traditional ‘price tag cost’ of a King Air 100 Jet Charter travel is much higher than car travel ($2419 versus $384 cost per traveler), when we continue down the results rows into the Time and Productivity factors the opposite happens.

Because when three executives averaging $150,000 in salaries can recover over 18 cumulative hours of time, the ‘Time Machine’ Savings with Employee Productivity value is $18,753.

And that’s not even counting the hours being spent away from home due to Regional car travel time allotments and logistics. That $18,753 of ‘Time Machine’ Savings is a direct factor between hours recovered and a pre-determined employee Productivity factor set by the Jet Charter prospect business themselves.

Because if you ask any CFO of a business what a 150K Executive should contribute to the Company… it’s going be more that 150K.

And the more aircraft you add to the Jet Charter Simulator, the more choices the CFO’s (and whoever they internally delegate the tool to) will have. The beauty of this is the only aircraft they are comparing it to (Regional Car Travel vs. Jet Charter Travel or Airline vs. Jet Charter Travel) are your aircraft… not your competitors.

Instead of the traditional way of selling ‘Jet Charter’ as a luxury ‘Price tag’… think about the paradigm shift of supplying businesses at the C-level with a QUANTITATIVE tool to promote your Jet Charter service around a Cost/Productivity ROI equation.

So before traditional choices are made to have executives travel by Car or by Airline, they can make the decision to ‘Jump on board’ your fleet when the business equation and ROI factors tilt in your favor.

Bottom line, you can show executives with fiscal responsibility how to ‘Think about TIME Differently’. And Justify it.

Jeff Hardesty is President of JDH Group, Inc. and a national sales result coach. He helps Jet Charter Companies sell more Jet Charter in Less time. http://www.sellmorejetcharter.com

To receive a complimentary DEMO of the Jet Charter Simulator with your own Jet Charter aircraft specifications contact Jeff @ 740-881-1691 or email jeff@convertmoresales.com with ‘Jet Charter DEMO’ in the subject line.