ATTN Shop and AC owners: there is no MX shortage. Just a pay one.

oh thats a remark from someone that's most likely never ran a business.

The average consumer is as dumb as a bag of wet rocks. As a business owner I set the rate, the product and the rules. If you don't like them try and find the products i offer elsewhere.

Again, run a customer facing business and tell me that the customer is always right. lol I can't believe people actually think that applies. lol

I'll note that other than a pithy and low effot response you couldn't find any fault with my 10 minute reply.

So tell me Mr. customer is always right, how would you run bobs low paying no future airplane -o- rama and make a profit and grow? Oh wait, your last annual customer is at the door wanting to know why you said his airplane with one wing missing is unairworthy... cuase you know, the customer is ALWAYS right
Why'd you close the business and go into what you're doing now? Not enough customers to pull the wool over their eyes?

That post reads like someone who has never run a business...or perhaps did. But ran it into the ground.

I have exactly one bad review. And it's from someone I didn't even work for.
 
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So tell me Mr. customer is always right, how would you run bobs low paying no future airplane -o- rama and make a profit and grow?
Well, it seems obvious you won't or can’t answer the question. Remember, you are the one who stated charge more money and that will fix the mechanic shortage. So, lets try again to see if you can answer the question but in a simpler context. Try this:

You are given a one-man, fully equipped maintenance shop at a well-established county airport, which has successfully supported a longtime customer group of 50 aircraft owners for the past 40 years at a current shop rate of $100/hr. The insurance, lease, etc. costs are whatever you want them to be. So, based on your view, how much will you raise your shop rate to meet your business goals and how do you anticipate that rate increase will affect your current, established customer base?
 
Well, it seems obvious you won't or can’t answer the question. Remember, you are the one who stated charge more money and that will fix the mechanic shortage. So, lets try again to see if you can answer the question but in a simpler context. Try this:

You are given a one-man, fully equipped maintenance shop at a well-established county airport, which has successfully supported a longtime customer group of 50 aircraft owners for the past 40 years at a current shop rate of $100/hr. The insurance, lease, etc. costs are whatever you want them to be. So, based on your view, how much will you raise your shop rate to meet your business goals and how do you anticipate that rate increase will affect your current, established customer base?
That's a somewhat unfair question, because it assumes an existing customer base and gives no sense of unmet demand in the area.

Speaking as a GA "spam can" owner, I don't have a problem paying an A&P or IA what he/she is worth. Where I have problems is with paying "name brand" FBOs way more than is commensurate with the value they provide, either directly in landing and ramp fees, or indirectly in overhead that doesn't pass through to the mechanics.
 
That's a somewhat unfair question, because it assumes an existing customer base and gives no sense of unmet demand in the area.
Not really as its pretty reflective of what’s been happening on the recreational mx side for the past 10 years., ie., longtime shop owner retires with an existing customer base but there’s no one to step in and take over that business and continue support for those customers. His contention is that more people would look to take over that business provided they raise the shop rates because the existing customers will simply rollover and say thank you for the higher rate.

Speaking as a GA "spam can" owner, I don't have a problem paying an A&P or IA what he/she is worth.
Interesting. How do you determine what an A&P/IA is worth?
 
Interesting. How do you determine what an A&P/IA is worth?

Hard to say, and depends on the local market, but they're generally worth more if you part them out rather than selling them whole. An A&P's liver is usually shot, but if the kidneys are okay you can probably sell one for more than the entire A&P will bring whole. A HIMS AME can provide guidance on what each organ might bring in the SI market.
 
You should incorporate that into your advertising. Consumers deserve to know a little about the mindset of who they're doing business with.

otoh - some of them aren't bright enough to know when they've been insulted.

(I'm retired, I don't have to worry about customers. heh heh heh)
 
Speaking as a GA "spam can" owner, I don't have a problem paying an A&P or IA what he/she is worth.
Without weighing in on the current debate, this comment provoked an interesting mental exercise as I tried to determinate my personal break point for a shop rate. Certainly my local shop has been slowly and steadily increasing their hourly rate, softening the blow somewhat with the "old rate" for big projects for loyal customers. I'm not sure it would be a hard break, but certainly I'd begin to consider deferring some maintenance (I'm currently a guy who doesn't defer anything to annual) and at some point I'd have to get out of certified aviation to minimize exposure. At that point, a consultative maintenance service such as Savvy begins to make more financial sense.
 
Even more interesting. So, what is your local engineer making these days per hour for your comparison?

I know you didn't ask me... but in my local area starting salaries for BS EE are somewhere around $83,000 (plus benefits).
 
I know you didn't ask me... but in my local area starting salaries for BS EE are somewhere around $83,000 (plus benefits).
Thanks. Seems few can answer simple questions in this thread. For context, that starting $83,000 equates to more than the median A&P salary ($81,500) in the US to include the airlines where the top outs in 2022 where around $125,000 per year for a base wage.
 
I have run a business. I always told my staff "The customer is not always right, BUT you never win a argument with a customer".
If you think you won, you probably lost that customer.
Lose too many customers and you lose everything.
lol wut?

Customer doesn't remit payment on time for the past 6 months, and refuses to pay late fee/penalities... you better waive them becuase they are ALWAYS RIGHT... and even more lunacy you want to keep them as a customer? LOL NO

I'll 'fire' that customer every day of the week and twice on Sunday.

I got a million more examples. Its easy to post like you are empathetic, but payroll is due every week... fire the deadbeat customers and concentrate on the profitable ones. I never knew 99% of my best customers. Paid on time, used minimal CS time... a gold mine. But if I knew a customer by name that means they are a PITA and at some point they tip the scale from profitable to not. Then its TIME. TO. GO.

Ain't no business still in business acting like the customer is always right.

Also this:
These traits of Field are reflected in a 1919 article from The Magazine of Business:


Field, it is well known, was the first to say, "The customer is always right." … The exact version of the saying was not just as it was given above. It was, "assume that the customer is right until it is plain beyond all question that he is not."
 
Based on your posts, I’d bet the rules would change frequently.
Nope. Never increased my base rate from the day I opened.

Only modifications were when technology required it ala no bulk emails, no running servers unless on a dedicated IP etc

Instead of trying post pithy comments, tell me about the business YOU STARTED AND RAN and how you gave every customer everything they wanted LOL
 
Nope. Never increased my base rate from the day I opened.

Only modifications were when technology required it ala no bulk emails, no running servers unless on a dedicated IP etc

Instead of trying post pithy comments, tell me about the business YOU STARTED AND RAN and how you gave every customer everything they wanted LOL
I see exactly one person using anything terminology resembling “the customer is always right,” or “giving the customer everything they want,” and it’s you. Making stuff up, changing the rules.
 
Thanks. Seems few can answer simple questions in this thread. For context, that starting $83,000 equates to more than the median A&P salary ($81,500) in the US to include the airlines where the top outs in 2022 where around $125,000 per year for a base wage.
Starting wage for a legacy (AA) in 2025 is $44.06 for 2080 hours a year = ~$91,000 Plus benefits (including flight benefits!)
Top out (8 years) is $68.45 = +$142,000

That's not even the best, just the first google result. Every airline is upping pay just about every year. Delta just did a 4% increase.

What GA shop is near that?
 
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I see exactly one person using anything terminology resembling “the customer is always right,” or “giving the customer everything they want,” and it’s you. Making stuff up, changing the rules.
I never changed the rules, Please show me what you are inferring.

It was stated that my 'I don't care what the customer wants' statement was 'bad for business'. Yet every owner will agree that there are some customers you simply don't want and need to 'fire' them.

Please tell me about your business and how you ran it. I was quite successful. A few million in revenue and a 6 year run. When some wannabe 'day trader' is calling support 6 times a day because his free stock tickers freeze up (none of which are my problem) I protect my CS reps and other customers by saying 'sorry you are not happy with the service. I will set your account to expire on the next billing cycle and you are free to find a provider that better suits your needs'. He then threatened to sue me. I laughed and hung up. I printed the out and put it on every cubicle.


My point was to counter this statement: "I think this is one of your more profound statements and exactly why you have no clue how the aviation mx business works." - Bell206

I read online that CRS's drop customers contantly. AIrworx had a few gems on FB pointing out they returned customers parts becuase they were unreasonalbe (it was a warranty claim IIRC). Mr Bell would seem to think that the shop should eat a few grand in non-covered rework.... my stance is that its not my problem if I didn't do it and its not under warranty.

No shop stays in business that way.. and there are to few shops left that they shouldn't take the best approach to THIER bottom line.
 
My point was to counter this statement: "I think this is one of your more profound statements and exactly why you have no clue how the aviation mx business works." - Bell206
And I still stand by that statement for the simple fact per your previous comments you believe a one man aircraft maintenance shop that lasted 40 years with a large, established customer base is somehow a failed business model.

Mr Bell would seem to think that the shop should eat a few grand in non-covered rework....
Except I never stated that or the customer is always right. Only you have. ;)
 
I never changed the rules, Please show me what you are inferring.
I’m inferring that the way you bring irrelevant information into posts and demand that people defend something they didn’t say is changing the rules of the topic, and is probably indicative of the way you would operate a business.
 
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Except I never stated that or the customer is always right. Only you have. ;)
Same with me. I even said "the customer is not always right, but that you never win an argument with a customer". But he continued with the "customer is always right" charge because that is what he wanted to hear. Perhaps I should have gone into more detail. I told that to my staff. I also told them that if a customer had a problem they couldn't resolve (and they were authorized to take reasonable measures to resolve a problem) they should come to me. If I couldn't reasonably resolve the issue I had no problem firing a customer that needed firing.
 
lol wut?

Customer doesn't remit payment on time for the past 6 months, and refuses to pay late fee/penalities... you better waive them becuase they are ALWAYS RIGHT... and even more lunacy you want to keep them as a customer? LOL NO

I'll 'fire' that customer every day of the week and twice on Sunday.

I got a million more examples. Its easy to post like you are empathetic, but payroll is due every week... fire the deadbeat customers and concentrate on the profitable ones. I never knew 99% of my best customers. Paid on time, used minimal CS time... a gold mine. But if I knew a customer by name that means they are a PITA and at some point they tip the scale from profitable to not. Then its TIME. TO. GO.

Ain't no business still in business acting like the customer is always right.

Also this:
These traits of Field are reflected in a 1919 article from The Magazine of Business:
When I've had a customer late on payment I might waive interest charges just to get paid.. THEN not work for them again. When they know you're not going to work for them, they have no reason to pay you.
 
What GA shop is near that?

You really have a minimal understanding of “GA” (not surprised)

There are many service centers around the country that perform maintenance on Cessna jets, Gulfstream, Lear, Bombardier, etc. Then you have those that maintain the ABJ’s and BBJ’s.

Then we have the specialty AOG shops that work mobile in the field for business jets.

Let’s toss in the large 135’s (Netjets, etc) and the large helicopter (PHI, Bristow)

Those above rival if not exceed airline maintenance pay scales.

You really take a low attitude towards those working on small GA recreational type aircraft as that is a niche market. And it’s readily apparent you yourself have never worked in that segment.
 
If your shop has to turn away paying customers then the shop is missing an opportunity....
Not necessarily, Most businesses have an Ideal size. The size where they are making the most money per item(s) they are selling.
Of course, total income can increase with scale, but is usually a lot more work for marginally more profit.

I worked for a company that was building a high end product. When I started they were producing 25 products per month and had a year backlog of orders.
The owner was doing very well, but once told me he was actually making more money when he was at his previous shop building only 8 products per month.

Building the new production facility, the more people required to handle overhead, ordering, shipping, personal, and product support, really ate into his profit margin. He had to manage a much larger organization to make marginally more money.
He still did very well selling 25 per month and eventually sold the company.

The new company operated about the same for a couple years then built a new facility ramped up the production to 50-75 per month. Within a few years the company went bankrupt.
A gentleman I know ended up buying the assets, restarted the company back at about the 25 per month rate and is still going strong with several years of backlog orders.

Brian
 
CFIing has similar dynamics, but it's has been accepted by the rank and file that these rungs are to be used as disposable developmental positions, thus compensated with hours not dollars. Hours that then get used to qualify for the "real" jobs, while diluting the quality of the job itself.

If it is the case that the hiring dynamic for APs no longer requires the historic economic subordination of the [dying] small recreational piston side in order to qualify for the jobs that offer "career" wages (pay + retirement + medical), then that subsector will simply cease to exist. That's not unique to aviation.

Fwiw, all the people I was regulatory-forced to transact with during my fac-built ownership tenure, did so as a side dish from the main job. Which was usually servicing turbine commercial operations (one a remote desert outstation dedicated to price-capture AOG'd cargo 135 turboprops subcontracted from the usual color tails; the other was a traveling mechanic for on-call AOG for 121 big jet cargo, to include international TDYs, who moonlighted as a part-time school mx director in the town I moved to).

I don't think any of them ever suggested with a straight face they could or would attempt to make a full time living servicing recreational piston. Not saying it's impossible, I just didn't see the market apetite from these providers. And technically I was trying to actively decouple from the need for their labor, and did, proving their own point.
 
You spout off how raising mx rates will cure everything for recreational aviation maintenance issues, but you don’t offer any real-world type examples other than a jumble of numbers. Here’s your chance, detail how you would apply your rate increase theory and be successful to the following example:

A single man maintenance shop is retiring at a small but well-established county airport after 40 years of service. The airport manager calls you to come and set up shop after reading your posts on PoA. The current shop has been undercharging as you state for those 40 years, say $100/hr and the current list of 50 aircraft owners based there are keen to keep on site mx as the nearest competitor is miles away. Okay, start.
That’s real life example for the AnP/IA I currently have used for 25 years. In 2 years he is retiring. He is not local to me, about 30 min flight, but I continued with him when we moved, because of our relationship. His shop rate went to $140 an hour last year, up from $130 the previous, and $120 the year before that.
 
Thanks. Seems few can answer simple questions in this thread. For context, that starting $83,000 equates to more than the median A&P salary ($81,500) in the US to include the airlines where the top outs in 2022 where around $125,000 per year for a base wage.
And at $83,000 divided by the standard work year of 2080 hrs, that equates to $40 per hour. Also $83,000 does not take into account benefits, but the 2080 does account for 80 hrs of vacation. You can do the math for $125,000.;)
 
Also $83,000 does not take into account benefits, but the 2080 does account for 80 hrs of vacation.
True. But in the context of the OPs claim its all about increasing the mechanics wage and they will flock to the recreational mx side. And while the commercial side of GA and 121 can support mechanic top out wages in the $125k range I never seen that in general at the recreational level unless the mechanic had a specialty skill set that supported the higher wage. But most small shops I'm experienced with would use a median wage to base their shop rates on to include whatever net profit they wanted. Rarely was the "shop" rate the same as the mechanic wage. Even my "mx rate", once I dropped my shop, included my wage, insurance cost, and profit.
 
There are many aircraft owners just barely hanging on to their airplanes. It shows up in the ignored or deferred defects I used to find in those airplanes. Raise the shop rates much and they have to sell, and now your market is smaller. The demand for small aircraft would also go down if the buyer found he would have to pay a lot more than he would have previously. At least it would have the effect of lowering the prices of tired old airplanes to more reasonable levels.

Economics is far more complicated than just raising rates to pay your employees more. Too many folks take simplistic views of such things. Aviation is particularly tough to make much money in. The regulatory and litigious factors are far bigger than in most other industries.
 
And I still stand by that statement for the simple fact per your previous comments you believe a one man aircraft maintenance shop that lasted 40 years with a large, established customer base is somehow a failed business model.


Except I never stated that or the customer is always right. Only you have. ;)

No, my point has always been that MX pay needs to increase. You NEVER, EVER EVER posted ANYTHING to solve that issue, unlike me that has. When I DID give a quick off the cuff 10 minute plan you just pivoted to another useless point (ie I said the customer is never right) and NEVER, EVER EVER posted how your scenario could pay MX more.

Owning your job (the scenario you posted) is never going increase MX pay. I've asked you SPECIFICALLY at LEAST TWICE to give me YOUR SOLUTION and all I can see are goal posts being moved.... now you're saying its not about 'how can you increase rates/profits/billable hours' to oh, the poor 60 year old MX is simply living his life.

At this point you're just spinning gears and tying to CHANGE THE SCENARIO you gave me (those goalposts must be getting heavy for all that moving you're doing).

There is no reason why the MX in the scenario cannot raise rates. Will some customers leave? Yeah, most like the crappy ones that he should have 'fired' years ago. Airport based MX have a quasi monopoly. Yes, they should exploit it to raise rates so they can (wait for it) pay better salaries to hire more MX, expand their business and 'cure' this so called MX shortage.

I posted a M. Busch video where he echoed the exact same points I make. Everyone here knows the issues: GA MX pay sucks. GA has ZERO draw for MX when they stay $20-25/hr vs $40/hr with excellent benefits. I would bet that 20% of the airline MX would jump to GA if they matched (or were close) to airline pay.

For the mathmatically challenged: $40/hr * 2080/hrs/yr = $83,000.
For a shop paying $25/hr = $53,000
Raising the shop rate $15/hr (well lets day $20 to cover medicare, workers comp) = $41,000 additional revenue required

WIth current backlogs of 6months to a year, that means shops are booked for the full work year. Increasing the hourly rate from $150 to $170 MORE THAN COVERS a second MX and doubles the amount of billable hours available.

I'll wait while the group tried to move the goalposts yet again rather admit that most shops are (sorry to say) not run buy businessmen.

I posted above what you said. ""I think this is one of your more profound statements and exactly why you have no clue how the aviation mx business works." - Bell206

This was a direct response to my 'the customer is never right' post. So yeah, just proving my point. There is nothing speical about aviation. Business is business. The Rules of Acuisition still apply lol
 
I’m inferring that the way you bring irrelevant information into posts and demand that people defend something they didn’t say is changing the rules of the topic, and is probably indicative of the way you would operate a business.
I use examples to prove my point then people find fault with the most minute things like grammer or spelling then its off on a tanget.

Having a conversation online is not the best or most conducive method of information exchange.

I ran a very sucessfull business. Not sure why you think you are insulting me. A few million in profits is a failure? Wow.
 
You really have a minimal understanding of “GA” (not surprised)

There are many service centers around the country that perform maintenance on Cessna jets, Gulfstream, Lear, Bombardier, etc. Then you have those that maintain the ABJ’s and BBJ’s.

Then we have the specialty AOG shops that work mobile in the field for business jets.

Let’s toss in the large 135’s (Netjets, etc) and the large helicopter (PHI, Bristow)

Those above rival if not exceed airline maintenance pay scales.

You really take a low attitude towards those working on small GA recreational type aircraft as that is a niche market. And it’s readily apparent you yourself have never worked in that segment.
Perfect example of a tangent. :rolleyes: o_O

I don't think many people would put business jets in the 'local GA MX shop' catagory.

How many local GA shops have the proper tooling to change a tire on a business class jet? Or the requisite GENFAM class to work on one? Or the insurance? Or the DOMs approval to sign off?

Topic: STAY ON IT.
 
Not necessarily, Most businesses have an Ideal size. The size where they are making the most money per item(s) they are selling.
Of course, total income can increase with scale, but is usually a lot more work for marginally more profit.

I worked for a company that was building a high end product. When I started they were producing 25 products per month and had a year backlog of orders.
The owner was doing very well, but once told me he was actually making more money when he was at his previous shop building only 8 products per month.

Building the new production facility, the more people required to handle overhead, ordering, shipping, personal, and product support, really ate into his profit margin. He had to manage a much larger organization to make marginally more money.
He still did very well selling 25 per month and eventually sold the company.

The new company operated about the same for a couple years then built a new facility ramped up the production to 50-75 per month. Within a few years the company went bankrupt.
A gentleman I know ended up buying the assets, restarted the company back at about the 25 per month rate and is still going strong with several years of backlog orders.

Brian

Yeah but the topic is the LACK OF MX for SMALL GA shops and how to fix it. No one, NO ONE has come up with a more clear answer: PAY A BETTER WAGE.

Shop are reluctant to increase wages... there has been a 21% increase in inflation due to 'reasons'. How are you gonna get that 5 year experienced IA in the door paying $30/hr?
 
There are many aircraft owners just barely hanging on to their airplanes. It shows up in the ignored or deferred defects I used to find in those airplanes. Raise the shop rates much and they have to sell, and now your market is smaller. The demand for small aircraft would also go down if the buyer found he would have to pay a lot more than he would have previously. At least it would have the effect of lowering the prices of tired old airplanes to more reasonable levels.

Economics is far more complicated than just raising rates to pay your employees more. Too many folks take simplistic views of such things. Aviation is particularly tough to make much money in. The regulatory and litigious factors are far bigger than in most other industries.
If an owner is 'on the edge' then they should sell it. Flying an UN-maintaned AC is a good idea how? I'd bet a club or rental would fit thier budget much better.

There are people with disposable incomes that would rehab that same tired airframe and flip it. Granted not all AC are 'flipable' but a clapped out 172 set up for VFR with a re-freshed interior and paint would turn a good profit if the work is done by an AnP for the cost of parts.

Not everyone needs a full Garmin IFR stack. MOSIAC is supposed to (lol sure LOL) lower the cost of flying... now that all these sport pilots can fly 172s or better the market for AC should improve. LSA / ELSA in the 4 place class are still WAY ABOVE the cost of a used 172 or Piper.

Also while MOSIAC 2.0 is supposed to open up the MX side of ownership there are still going to be a LOT of people who don't/can't do it. Either time or experince being a factor. GA MX is still needed and there will be NO cure to the GA shortage unless (wait for it) PAY INCREASES to draw more MX to the GA side.

Ask a new A&P if they would work for less than $30 and hour. I guess the ones that really, really want to work at the local field would accept it, but most are gonna see $45+ starting at a legacy and apply. Legacies are STILL hiring off the street.
 
No, my point has always been that MX pay needs to increase. You NEVER, EVER EVER posted ANYTHING to solve that issue, unlike me that has. When I DID give a quick off the cuff 10 minute plan you just pivoted to another useless point (ie I said the customer is never right) and NEVER, EVER EVER posted how your scenario could pay MX more.

Owning your job (the scenario you posted) is never going increase MX pay. I've asked you SPECIFICALLY at LEAST TWICE to give me YOUR SOLUTION and all I can see are goal posts being moved.... now you're saying its not about 'how can you increase rates/profits/billable hours' to oh, the poor 60 year old MX is simply living his life.

At this point you're just spinning gears and tying to CHANGE THE SCENARIO you gave me (those goalposts must be getting heavy for all that moving you're doing).

There is no reason why the MX in the scenario cannot raise rates. Will some customers leave? Yeah, most like the crappy ones that he should have 'fired' years ago. Airport based MX have a quasi monopoly. Yes, they should exploit it to raise rates so they can (wait for it) pay better salaries to hire more MX, expand their business and 'cure' this so called MX shortage.

I posted a M. Busch video where he echoed the exact same points I make. Everyone here knows the issues: GA MX pay sucks. GA has ZERO draw for MX when they stay $20-25/hr vs $40/hr with excellent benefits. I would bet that 20% of the airline MX would jump to GA if they matched (or were close) to airline pay.

For the mathmatically challenged: $40/hr * 2080/hrs/yr = $83,000.
For a shop paying $25/hr = $53,000
Raising the shop rate $15/hr (well lets day $20 to cover medicare, workers comp) = $41,000 additional revenue required

WIth current backlogs of 6months to a year, that means shops are booked for the full work year. Increasing the hourly rate from $150 to $170 MORE THAN COVERS a second MX and doubles the amount of billable hours available.

I'll wait while the group tried to move the goalposts yet again rather admit that most shops are (sorry to say) not run buy businessmen.

I posted above what you said. ""I think this is one of your more profound statements and exactly why you have no clue how the aviation mx business works." - Bell206

This was a direct response to my 'the customer is never right' post. So yeah, just proving my point. There is nothing speical about aviation. Business is business. The Rules of Acuisition still apply lol
IMG_3591.gif
 
There are many aircraft owners just barely hanging on to their airplanes. It shows up in the ignored or deferred defects I used to find in those airplanes. Raise the shop rates much and they have to sell, and now your market is smaller.

I'm confused. I'm not sure how the market would get smaller. The airplane still exists, there are still the same number of owners. Just not the same owners.

(but, yes, economics isn't quite as simple as we wish it was)
 
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