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 Post subject: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:11 
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Location: London
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I'm negotiating with my local FBO where I will be paying a hefty monthly hangar rent and trying to figure out what is a reasonable rate for Jet-A. I know this is a sensitive topic, so I understand folks not wanting to share what their deal is but any guidance towards what would be reasonable discount would be helpful. I expect to be flying a lot, although a good deal away from base. I'm not going to be going out of my way to fuel up away rather than at home, I do appreciate the convenience of fueling up at home.
I have the rates available through the fuel card programs and there are four FBOs on the field, so I have some negotiating leverage...
I don't yet know how much fuel I will be buying at home base but it can obviously be reasonable amount, although not a lot compared to what the jets burn, perhaps. Hard to predict in advance but it back of envelope gets to at least something approaching 400 gallons/month, if I fly 150 hours/year at an average burn of 55 gallons/hour and buy half my my fuel at home base.
The published rates today for the 4 FBOs are
$3.75
$3.80
$3.80
$3.85

The lowest rates with fuel cards for sub 500gallons are in some cases around $1.00 less than the list prices and ~ 20 cents more than to the lowest published price in LA area, which is $2.65 at El Monte, if you don't count French Valley, which isn't LA really but... is nearby with $2.45 fuel.
I had a fuel deal on the Baron which I didn't negotiate very hard to get and which wasn't really a very good deal, a small discount to list but in line with the cheapest Avgas truck on the field in exchange for an agreement to take a modest minimum quantity per month... but I was burning less than I will going forward. I was happy to get hangarage and the service has been good from the FBO. I did not negotiate much on hangar rent but I'm happy with the service and treatment. My hangar rent on the Turbo Commander is 150% the rent on my first apartment in NYC but the hangar seems to have fewer cockroaches, be substantially larger and has fewer police cars going through the neighborhood with sirens blasting.
Any guidance appreciated.
Thanks


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:26 
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25-50 cents over cost is fair if you buy a lot of jet fuel. Talk to the manager. They WILL negotiate.


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:27 
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$2


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:48 
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Username Protected wrote:
$2


1.50 ........cheap ass farmer :duck:

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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:53 
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How many gallons of Jet-A or 100LL is considered a large volume? What is the approximate cost of each fuel? I know this varies by region but BALLPARK??? I hear 20-25 cents above cost for Jet-A. Same for 100Ll???

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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:53 
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Aircraft: C182P, Merlin IIIC
I got me some $1.20 on my recent trip, but I don't think they'll do that in Malibu.

Recent long trip fueling the Merlin was right around $150 an hour.

hehehe :tongue:


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:57 
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Michael, I came across this quote and thought you might like it.

“In times of change learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.” ~ Eric Hoffer


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:57 
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One approach, that might interest the FBO, is to offer to buy a truck load of fuel at the spot fuel price, and offer to pay a $.20 into-plane flow fee. At today's prices you will be buying cheap fuel and it will probably last you through the next rate hike and no risk to the FBO.
JMHO :cross:


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 21:58 
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Location: Live in San Carlos, CA - based Hayward, CA KHWD
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Username Protected wrote:
Same for 100Ll???

You are unlikely to get much, if any, discount on 100LL. The FBOs just don't sell enough of it, and it costs them a fair amount to pull the truck over to your hangar for a small fillup. They will discount JetA because the volumes are much more significant. When the truck comes to my hangar I'm buying at least 100 gallons, usually more.

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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:02 
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Michael, I came across this quote and thought you might like it.

“In times of change learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.” ~ Eric Hoffer


:clap: :clap:

love it

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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:09 
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Username Protected wrote:
Same for 100Ll???

You are unlikely to get much, if any, discount on 100LL. The FBOs just don't sell enough of it, and it costs them a fair amount to pull the truck over to your hangar for a small fillup. They will discount JetA because the volumes are much more significant. When the truck comes to my hangar I'm buying at least 100 gallons, usually more.

The T-Bones tanks hold 180 gallons. When I fill up it is usually over 100 gallons. So let me ask again. How many 100 gallon fill ups do I need to have bargaining power?
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Tavis White
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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:12 
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The fuel at my home field is 4.35 a gallon. At 50 miles away they are giving it to me for less than $3 a gallon. Just wondering what BT thinks a fair rate at my home field is? Big difference is home field is either truck or self serve. The lower price is self or assisted serve. I have added fuel 4 times this month. 3 at home field and 1 with cheaper fuel.

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Tavis White
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Last edited on 17 Feb 2016, 22:16, edited 1 time in total.

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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:12 
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Joined: 11/08/12
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Location: Live in San Carlos, CA - based Hayward, CA KHWD
Aircraft: Piaggio Avanti
Username Protected wrote:
The T-Bones tanks hold 180 gallons. When I fill up it is usually over 100 gallons. So let me ask again. How many 100 gallon fill ups do I need to have bargaining power?

Well, you will never know until you call and ask. Asking here is completely irrelevent.

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-Jon C.


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:20 
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I agree I need to ask. Just wanted data so if he was open to negotiation I had knowledge to have effective bargaining power.

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Tavis White
Blue Skies...


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 Post subject: Re: Home field Jet-A discount versus list price
PostPosted: 17 Feb 2016, 22:49 
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Joined: 12/17/13
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Aircraft: Aerostar Superstar 2
Patrick - Flying Tigers at Chino has it for $2.79/gal. Mike who owns it will normally give more discount if you ask for it. That's a dollar less, so could be worth the trip. You can fit 380gal, right?

I always go to them, but I'm closer. It's a 20 min trek from Camarillo.

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