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Pricing flight hours



 
 
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Old May 5th 05, 06:57 PM
Andrew Gideon
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Mark Hansen wrote:

On 5/5/2005 09:14, Dude wrote:



Could you stop treating the planes as individual entities? Or could you
charge the other planes a "Backup Plane Support Tax"?


[...]

This is going to be a big change for your club, but having a plane
sitting
around under utilized costs money. It has to come from somewhere.


In fact, this is one idea I've proposed.

However, it assumes that there's a cost to having that airplane sitting
around underutilized. The fixed costs are covered, so - if we're pricing
correctly - why should there be a cost to having that airplane sitting
around underutilized?

That's where I'm "stuck" now. If we can price each hour more accurately,
then the issue disappears.


[...]
The membership may be
willing to pay a little more, in general, for the added benefit of
the fourth plane.


That's a perspective I haven't yet included. Thanks. But still, I'd like
to eliminate the issue by more accurate pricing...if that's possible.

- Andrew

 




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