Surprised by lack of serious offers

rv12builder · #1 11-05-2011, 10:57 AM

Hi all,

Searching for advice on selling my RV-12 kits for a fair and equitable price. My question to the group is do you think that the price i have set is unreasonable?

I tried offering a 20 percent discount to original price on the combined kits (empennage, wing, fuselage and lighting) and then also tried offering each kit by themselves. That works out to be approx a $3000 savings over buying from Vans. The empennage kit is built. All parts were primed prior to assembly. Wing ribs are ready for priming. The rest of the kit parts have only been inventoried.

I am located about 1 hour south of Boston on Cape Cod and in a couple of inquiries transportation costs became a factor. The obvious thought is to lower the price which I do not need to do. I am thinking of continuing to build out the kits I have and just keep them "ready for sale" to anyone who has the misfortune of damaging their plane and would like a faster fix. I would offer no discount but would only charge what the kit actually cost.

What do you all think? Perhaps I am missing something. Comments, suggestions, etc. would be appreciated.

Dave

DonFromTX · #2 11-05-2011, 11:06 AM

From what I can see, the sale of RV 12 kits has slowed down, and I can for sure tell you the aircraft market is soft. I have a similar problem, I have been trying to clean out my hangar for the 12 by selling my Ercoupe. Although I paid $28k for it, spent additional $3k cash plus MANY A&P hours of work on it, I cannot find a buyer at $25.9.
Transportation would be a major factor for you I am sure, if located in Kansas City it would be lots easier. I am not sure price is what is driving the market, probably if I were you I would stick to my price.

Vlad · #3 11-05-2011, 04:27 PM

Quote:

Originally Posted by rv12builder

snip

I am thinking of continuing to build out the kits I have and just keep them "ready for sale" to anyone who has the misfortune of damaging their plane and would like a faster fix. I would offer no discount but would only charge what the kit actually cost.

What do you all think? Perhaps I am missing something. Comments, suggestions, etc. would be appreciated.

Dave

Dave,
I think RV12 has different buyers unlike 7 or 8. Those well established in life types who are not much into little bargains. They would probably desire at least 50% discount which you won't offer. Don suggested the market is "soft" I would say the market is not formed yet for your offer. New machine, parts on relatively high price scale need couple years to create a niche.

I would suggest keep building but "build for yourself" not for sale as you indicated. Just change the perception/attitude and eventually you will have a flyable aircraft for yourself or a valuable commodity for somebody. If not, discount heavily and market agressively. Just an opinion you asked for it.

DonFromTX · #4 11-05-2011, 04:38 PM

There does seem to be a "secondary" market for them, several persons here have finished one and done another. I intend to start another plane when I am done with mine, if I can get a "real bargain" on a 12 kit or partially completed one, I would jump at it.
Not mentioned, there has always seemed to be reluctance to buy a partially constructed aircraft, the chance that poor workmanship may require some rebuilding and buying some new parts.
As was said, the market for RV12's and parts has not really established itself yet either.

David Paule · #5 11-05-2011, 07:26 PM

As a potential builder, I'd have to say that I'd look forward to assembling the airframe. But I wouldn't look forward to installing the avionics.

I'd regard shipping an unbuilt kit in the original boxes as routine, but shipping a partially built airplane as a major hassle, regardless of distance. I'd prefer a flying one so that I could simply fly it home. If it were partially built I'd prefer to have the opportunity to bring it home on my own trailer or in my pickup truck. That would tend to limit how far away I'd consider a purchase.

As for workmanship, I'd guess that if a builder followed the directions and didn't use a torch to get things to fit, or hammer mating parts together (both have been mentioned in the RV-12 section recently) that probably the workmanship of an RV-12 would be acceptable. There's less opportunity to screw it up than for some of the others, and the plans are excellent.

Finally, there have been hundreds of kits ordered. There's bound to be some bargains at some time or other, and I'm not in a hurry.

Good luck on selling the airplane. I think I've seen more completed ones for sale than partially-built, so patience might be the most important factor here. That and advertising.

Dave

CPSONE · #6 11-06-2011, 07:37 AM

Quote:

Originally Posted by DonFromTX

I have a similar problem, I have been trying to clean out my hangar for the 12 by selling my Ercoupe. Although I paid $28k for it, spent additional $3k cash plus MANY A&P hours of work on it, I cannot find a buyer at $25.9.

Just an idea for the sale of your ercoupe. You might try selling it in shares. Say thee shares at 9000 each and establish a partnership.

DonFromTX · #7 11-06-2011, 08:49 AM

That is also a good idea for any of us. I have tried that also, and have three on a string who are willing to go to the $5000 range, a couple more and it would be gone. I would even be open to owning a fifth share myself, I like the plane.

Quote:

Originally Posted by CPSONE

Just an idea for the sale of your ercoupe. You might try selling it in shares. Say thee shares at 9000 each and establish a partnership.

rv12builder · #8 11-06-2011, 09:07 AM

Tom,

I too have been looking at the viking engine. Saw it at OSH and talked to Jan. Given his track record I am hesitant at this point to do anything other than wait. On the surface it looks great but without any long term data and some formalized testing and engineering evaluations I would not want to make that commitment to going from ELSA to EAB using that engine. I have also been following the UL engine too. It would certainly be less expensive to build EAB but I think harder to sell in the world of LSA's given the target audience.

Having said that if the FAA does change the third class medical requirement then the LSA marketplace is going to go thru huge changes and not necessarily for the better from a resale pricing perspective.

Just my $.02

Dave

rv12builder · #9 11-06-2011, 09:15 AM

Hi all,

Just wanted to say thanks to you all for your input. Your points of view tend to mirror mine and I will just be patient and occasionally toss an ad here and there to see if there is any interest.

Dave

DonFromTX · #10 11-06-2011, 09:17 AM

I am not sure that I share your concern about EAB being a bad thing. The market for Vans planes is very good, and you must realize that out of over 7000 planes, only a hundred of them are ELSA. Your desire to wait until "long term data and some formalized testing and engineering evaluations" would indicate that you have no business with an experimentals, that stuff is abundant for the spam cans of aviation.

Quote:

Originally Posted by rv12builder

Tom,

I too have been looking at the viking engine. Saw it at OSH and talked to Jan. Given his track record I am hesitant at this point to do anything other than wait. On the surface it looks great but without any long term data and some formalized testing and engineering evaluations I would not want to make that commitment to going from ELSA to EAB using that engine. I have also been following the UL engine too. It would certainly be less expensive to build EAB but I think harder to sell in the world of LSA's given the target audience.

Having said that if the FAA does change the third class medical requirement then the LSA marketplace is going to go thru huge changes and not necessarily for the better from a resale pricing perspective.

Just my $.02

Dave