Advice On Flying Clubs

"Paul Tomblin" wrote in message ...
In a previous article, Andrew Gideon said:
Paul Tomblin wrote:
all without
hitting up our members for anything extra beyond their monthly dues.

How does this work financially? For example, doesn't it mean that your
monthly fees (fixed or variable or both) are "overpriced" to pay for future
upgrades?

No, it means that your monthly fees include an upgrade reserve.

Consider a member that joins in 2000 and leaves in 2004. If, in 2005,
there's finally enough money for some planned upgrade, doesn't that mean
that the now-ex-member helped to fund an upgrade he or she will never use?

That member joined a club that had newish aircraft in 2000, bought with
the upgrade funds contributed by other members. They got the benefit of
other members upgrade reserve, just as future members get the benefit of
theirs.

The club started with 20 guys and a Cessna 120. Fifty years later, we've
got 48 members and 5 planes, and all along the way the fleet has been
upgraded as necessary to keep up with the needs of the members.

When we bought a new plane, for example, equity was increased. We did this
over time, so in looks like a periodic payment. But a departing member
gets all his or her equity back.

Since our member only had to pay $795 to join, he doesn't have any equity
and doesn't get anything when he quits. The other local club at our field
does an equity thing, and it costs $32,000 to join. And when they
increased the fleet to 4 aircraft, every one of them got hit with an
additional assessment. When we, on the other hand, traded in two 6,000
hour Archers for a 2,000 hour Archer and a Dakota, we didn't even raise
our monthly dues.


How much are the monthly dues?
--
Cheers,
John Clonts
Temple, Texas
N7NZ

In a previous article, "John Clonts" said:
"Paul Tomblin" wrote in message
...
additional assessment. When we, on the other hand, traded in two 6,000
hour Archers for a 2,000 hour Archer and a Dakota, we didn't even raise
our monthly dues.

How much are the monthly dues?

http://www.rochesterflyingclub.com/rates.shtml
$80 a month. Which is less than you'd pay for renters insurance,
according to AOPA.

--
Paul Tomblin http://xcski.com/blogs/pt/
Revenge is an integral part of forgiving and forgetting.
-- The BOFH

Paul Tomblin wrote:


http://www.rochesterflyingclub.com/rates.shtml
$80 a month.Â*Â*WhichÂ*isÂ*lessÂ*thanÂ*you'dÂ*payÂ*forÂ* rentersÂ*insurance,
according to AOPA.

BTW, why break out the insurance from the monthly? The actual monthly is
$80+$24. Why not just call it $104?

Any why break out "Lance membership" for a higher monthly? I'd guess that
this is to avoid having "low end" members pay the fixed costs for the "high
end" planes, right?

- Andrew

In a previous article, Andrew Gideon said:
Paul Tomblin wrote:
http://www.rochesterflyingclub.com/rates.shtml
$80 a month.

BTW, why break out the insurance from the monthly? The actual monthly is
$80+$24. Why not just call it $104?

No, the actual monthly is $82. The insurance is once a year.

Any why break out "Lance membership" for a higher monthly? I'd guess that
this is to avoid having "low end" members pay the fixed costs for the "high
end" planes, right?

Yes. This year we were forced to go to a "named pilot" policy on the
Lance. Since the insurance company only wanted 8 people on the list, but
15 people wanted to fly it and a bunch more had thoughts about eventually
moving up to it, we put that levy on the Lance pilots so that 7 people
would drop off the list of "wanting to fly the Lance", just to be fair to
the rest of the club. Personally, I pay the fee, and I wouldn't think it
fair that the rest of the club pays for the Lance's fixed costs if they
couldn't fly it.

--
Paul Tomblin http://xcski.com/blogs/pt/
You'll get access to my computer room right after you pry the Halon test
key out of my cold, lifeless hands.
-- Simon Travaglia

Paul Tomblin wrote:

In a previous article, Andrew Gideon said:
Paul Tomblin wrote:
http://www.rochesterflyingclub.com/rates.shtml
$80 a month.

BTW, why break out the insurance from the monthly? The actual monthly is
$80+$24. Why not just call it $104?

No, the actual monthly is $82. The insurance is once a year.

Oh, so the monthly cost is $82+($24/12)=$84?

I still don't understand why you break it out, though. Our club simply
bundles insurance into the monthly (along with other fixed costs). Why
break out this cost, but not others?


Any why break out "Lance membership" for a higher monthly? I'd guess that
this is to avoid having "low end" members pay the fixed costs for the
"high end" planes, right?

Yes. This year we were forced to go to a "named pilot" policy on the
Lance. Since the insurance company only wanted 8 people on the list, but
15 people wanted to fly it and a bunch more had thoughts about eventually
moving up to it, we put that levy on the Lance pilots so that 7 people
would drop off the list of "wanting to fly the Lance", just to be fair to
the rest of the club.

Ah, the economic solution to excess demand. Reasonable.

Personally, I pay the fee, and I wouldn't think it
fair that the rest of the club pays for the Lance's fixed costs if they
couldn't fly it.

Also reasonable. And I assume that, despite the fact that the motivation
for the premium is controlling demand, the extra income goes to the Lance's
fixed costs?

- Andrew