WIX Archives

Re: I´m beginning to understand ......

Posted by PeterA on Thu Oct 24, 2002 07:50:40 AM

In reply top Re: I´m beginning to understand ...... posted by Christer on Thu Oct 24, 2002 06:54:20 AM

Christer
Supply and demand. Too much resource chasing unsufficient business. It is not just a problem for Spitfires.
The days of 'hours and materials' contracts are long gone for all but the few.
If you submit a justified realistic quotation you will invariably be undercut. It is a delicate area but the skill is to negotiate an advance to a decision point about 5% into the project to include a full evaluation study, all parties to feel happy, and then move forward or terminate on both sides as appropriate.
I see guys struggling for token wages to support extended fixed price contracts for billionaires. That cannot be right.
You ask why do owners sell under cost. Who says so? Who admits to getting the numbers wrong? Personal circumstances would usually dictate this be it personal finance, business distress, loss of interest or to fund something else.
In my experience depreciation is just not a factor if these aircraft are being operated and 'wintered' professionally.
Peter

: Well, I understand that an estimate never is spot on and t
: hat there are a lot of "unforeseeables".
:
: With some experience it should be possible to take that in
: to account. Isn?t there some ISO standard for the purpose
: of better quotations?
:
: It doesn?t explain why owners sell below cost either.
: Brandons depreciation-"theory" due to hours flown is the c
: losest so far.
:
: Christer

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