The Most Expensive Avionics in Your Shop Might Be the Ones Sitting on a Shelf

Why unused avionics inventory costs shops more than they realize

Walk into almost any established avionics shop and you'll probably find a familiar sight.

A shelf full of old radios. A few GPS navigators. Some indicators, transponders, audio panels and miscellaneous equipment that came out during previous installations.

Some of it has been there for a few weeks.

Some of it has been there for years.

And somewhere in that collection is probably a radio that somebody swears was worth $3,000 when they put it there.

The problem?

It might not be worth $3,000 anymore.

At Skyman Avionics, we work with shops across the country that have accumulated equipment through years of panel upgrades. One thing we've learned is that many shops are sitting on considerably more inventory than they realize.

But there's a difference between having valuable inventory and actually getting value out of it.

The Shelf That Keeps Getting Bigger

This is a commons site at avionics shops that we work with.

Here's how it usually happens.

A customer brings in an aircraft for a panel upgrade. The shop removes the old equipment, installs the new avionics and completes the job.

The removed equipment gets placed in a box or on a shelf.

Maybe the customer asked the shop to sell it. Maybe the shop purchased it outright. Or maybe everyone agreed to figure out what to do with it later.

Then another aircraft comes in.

And another.

Before long, there's an entire collection of equipment waiting for someone to find the time to deal with it.

Of course, avionics shops are busy doing what they do best: installing, maintaining and repairing aircraft electronics.

Photographing equipment, researching market values, creating listings, answering questions, processing payments and shipping boxes isn't necessarily how they want to spend their time.

So the equipment sits.

And sits.

And sits.

Unfortunately, the used avionics market doesn't stop moving just because the inventory does.

Yesterday's $6500 GPS Might Be Tomorrow's $4,500 GPS

Exhibit A: A few years ago, the GNS 430W would sell like hotcakes at $6,500. Today, it typically sits on the market for a few weeks and averages between 4-4.5k.

Used avionics don't have a fixed value.

Prices change as manufacturers release new products, discontinue older equipment and introduce new capabilities.

Take the Garmin GNS 430 and 530 series, for example.

These navigators were once among the most desirable upgrades available for general aviation aircraft. They remain popular in the used market, particularly the WAAS versions.

But the introduction of newer touchscreen navigators and changing manufacturer support have affected how buyers evaluate older equipment.

A unit that commanded a premium several years ago may face considerably more competition today.

And sometimes, changes happen quickly.

A manufacturer announces the end of repair support. A replacement product becomes more affordable. A particular component becomes difficult to obtain.

Suddenly, the market looks different.

The point isn't that older avionics are worthless. It's that waiting rarely guarantees a better selling price.

In many cases, the opposite is true.

Let's Put Some Numbers to It

Imagine an avionics shop has 50 pieces of equipment sitting on its shelves.

Some are valuable navigators and transponders. Others are older radios, indicators and miscellaneous components.

Let's say the average current resale value is $800 per unit.

That's $40,000 in potential inventory value.

Now imagine the shop waits another two years to sell it.

If the average resale value declines by just 20%, that same inventory would be worth approximately $32,000.

That's an $8,000 difference.

And that doesn't account for equipment that becomes unrepairable, develops storage-related issues or loses demand altogether.

Of course, not every piece of avionics depreciates at the same rate. Some discontinued equipment can temporarily increase in value when serviceable replacements become difficult to find.

But the larger point remains.

Inventory sitting on a shelf is exposed to market changes whether you're paying attention to them or not.

And unlike cash in the bank, that inventory isn't readily available to pay employees, purchase equipment or invest in the business.

Your Time Has Value Too

Let's assume the shop decides to start selling its accumulated inventory.

Sounds simple enough.

Take a few pictures, list the equipment online and wait for the money to roll in.

Right?

Well, not exactly.

First, someone needs to identify the equipment and determine its condition.

Then there's researching comparable sales, photographing the unit, writing an accurate description and creating the listing.

Once it's listed, the questions begin.

"Does it come with a rack?"

"What's the software version?"

"Will this work in my airplane?"

"Can you test it?"

"What's your lowest price?"

Then comes payment processing, packaging, shipping and potentially dealing with returns or warranty claims.

Multiply that by 50 or 100 pieces of equipment.

Suddenly, selling used avionics becomes a part-time job.

For a busy installation shop, that time may be better spent completing another panel upgrade.

That's not to say shops shouldn't sell their own equipment. Many do it successfully.

But it's worth considering whether the additional revenue from selling everything yourself outweighs the labor and administrative costs involved.

The Hidden Cost of Poor Documentation

There's another problem with letting equipment sit around indefinitely.

People forget things.

That GPS navigator sitting on the shelf might have been working perfectly when it was removed.

But was it removed last month or four years ago?

Did it have any intermittent problems?

Was it removed during an upgrade or because something wasn't working?

Which airplane did it come from?

And where did the installation rack go?

These questions become increasingly difficult to answer as time passes.

Good documentation can make used avionics more attractive to buyers, especially when the equipment's history and operating condition are clearly established.

Something as simple as a removal tag identifying the aircraft, date, reason for removal and known condition can make a meaningful difference.

For shops that routinely remove equipment, we strongly recommend documenting it immediately rather than trying to reconstruct its history months or years later. We'vr made that process easier with these fillable inventory tags.

A unit with a known history is generally easier to market than one accompanied by nothing more than "I think it worked."

Not Everything Needs to Be Sold Individually

One mistake shops sometimes make is assuming every piece of equipment needs to be handled as an individual sale.

That isn't always the most efficient approach.

Higher-value equipment may justify individual listings, detailed photographs and additional testing.

Lower-value components might make more sense to sell in groups or as part of a larger inventory package.

For example, a shop might have several older communication radios, indicators and miscellaneous accessories that aren't worth spending hours marketing individually.

Selling those items together may generate less revenue per unit, but it can dramatically reduce the time required to move them.

The goal should be to maximize the overall return on your inventory, not necessarily squeeze every possible dollar out of every individual component.

Sometimes getting $500 today is better than spending six months trying to get $600.

Especially when the equipment has been sitting on a shelf for three years already.

Consignment Can Be a Practical Alternative

This is where consignment becomes useful.

Rather than having shop employees spend their time photographing, listing, marketing and shipping equipment, the shop can work with a company that specializes in selling used avionics.

At Skyman Avionics, we offer consignment services for aircraft owners and avionics shops that would rather focus on their primary business.

We handle the marketing, customer inquiries, payment processing, packaging and shipping.

Our consignors can also access an online portal to monitor their inventory and sales history.

For shops with larger inventories, we can evaluate whether traveling directly to their facility makes sense.

That can be particularly helpful for businesses with years of accumulated equipment that they simply haven't had time to organize and sell.

Of course, consignment isn't free. There is a fee associated with having someone else handle the sales process.

But when you consider the time, labor, selling fees and administrative work involved in selling equipment yourself, the difference may be smaller than you think.

And most importantly, the equipment actually gets marketed instead of continuing to collect dust.

A Simple Inventory Cleanup Can Go a Long Way

If your shop has accumulated a significant amount of removed equipment, you don't necessarily need to tackle everything at once.

Start with the obvious items.

Identify the higher-value navigators, transponders, displays and other equipment that still have an active resale market.

Separate equipment with known discrepancies from equipment believed to be operational.

Locate any associated racks, connectors and accessories.

Document what you know about each unit.

Then determine which items are worth selling individually, which might be better suited for consignment and which may no longer justify the effort.

Even a few hours spent organizing your inventory can reveal opportunities that have been sitting right in front of you.

And if you're not sure what something is worth, ask someone who deals in used avionics regularly.

You might be surprised by what still has value.

You might also discover that a few things you thought were valuable aren't worth nearly as much as you remembered.

Either way, knowing is better than guessing.

Don't Let Your Inventory Become a Museum

We love old avionics.

Seriously.

There's something pretty cool about seeing equipment that has been flying around in airplanes for 30 or 40 years.

But unless your shop is planning to open an aviation museum, there's probably no reason to keep collecting it indefinitely.

Those shelves represent money that could be working for your business.

Money that could help purchase new tools, expand your operation, pay down expenses or simply improve cash flow.

And while some equipment will hold its value better than others, there's no guarantee that the market will be as favorable next year as it is today.

At Skyman Avionics, we encourage shops to think of removed avionics as inventory that needs to be managed rather than equipment that can be dealt with whenever someone finds the time.

Because the most expensive piece of avionics in your shop might not be the new GPS you're installing today. It might be the old one that's been sitting on your shelf for five years, quietly losing value.

Have Shelves Full of Used Avionics?

Whether you've accumulated a handful of radios or hundreds of pieces of equipment, Skyman Avionics can help you evaluate your inventory and explore your selling options.

We work with avionics shops and aircraft owners nationwide to purchase and consign used avionics.

If you've been meaning to clean out those shelves, there's no better time to start than now.

Visit Skyman Avionics to learn more about selling or consigning your equipment.

Email: info@skymanavionics.com

Call: 541-604-9573

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