"Gig 601XL Builder" wrote:
He's over pricing even based on sportsplanes.com's own business
model.
Operating Cost at 700 hours per year is estimated to be $45.03
Cost of debt service...$10.63/hr
Folks not in the accounting business should opine only, with
disclaimer.
Gross profit goes toward all your other costs, like the FBO owner
wants a salary matching middle America at least. And exorbitant
charges to the airport for space. Etc., etc.
A rule in restaurants is just double your food costs for menu
price, and many still fail. A tavern can fail at triple the cost
of booze. So your cash out costs of $55.66 times two is a rental
rate of $111.
A grocery store at $5 million gross, on a narrow gross margin, can
fail. Are there many of those even around?
Fred F.
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