Is Your FBO Data Driven? If not, how do you know what's really going on?

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By John Enticknap, Aviation Business Strategies Group

“The goal is to transform data into information, and information into insight.” - Carly Fiorni: President Hewlett Packard, 1999-2005

Do you really know what’s going on at your FBO? It seems many businesses operate on a day-to-day, crises-to-crises basis with the managers just along for the ride.

This has validity in numerous market segments, not just in the aviation services industry. During our NATA FBO Success Seminar, scheduled in Dallas on September 12, 13 and 14, we will discuss this and many other topics. However, for this blog post, let’s concentrate on data collection and what we can do to improve our financial numbers. Then, turn it into insight we can act on to operate our businesses more profitability.

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An MRI for Your FBO — Improving the Vital Parts of Your FBO

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By Ron Jackson and John Enticknap

“Business is never so healthy as when, like a chicken, it must do a certain amount of scratching around for what it gets,” - Henry Ford

How healthy is your FBO? Is it running on all cylinders? Or is it in need of doing what Henry Ford suggests, “a certain amount of scratching around,” to find the golden nuggets buried in the business?

If you’re ailing, chances are you’d go to a doctor. If it’s serious enough, the doctor may order an MRI to aid in the diagnosis.

The financial and operational health of an FBO is no different. Sometimes we need a better look at all the vital parts in order to create a remedy that puts us on the path to prosperity.

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Mid-Point 2012 FBO Gut Check … It’s Wheels-Up for Remainder of Year

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By John L. Enticknap

“All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work.” - Calvin Coolidge

We’re halfway through 2012, so let’s do a gut check to see how the FBO industry faired for the first six months of the year. Then, let’s take a look at what we can do to help our bottom line for the remainder of the year.



At the beginning of 2012, we wrote three blog posts that I encourage you to review.

Part 1: 2012 Business Outlook for FBOs

Part 2: Decreasing FBO Costs in 2012

Part 3: Improving FBO Productivity in 2012

To summarize our 2012 FBO economic forecast, in January we said if your FBO has a five percent growth for 2012, your firm will be a star! That is still very true. We thought for a while that the growth rate may be greater in the first quarter of the year, but growth was a meager 1.9 percent. There was a slight up-tick for the second quarter that may push us past 2 percent. However, our overall prediction for the year of a 2.2 percent growth rate will most likely be the norm.

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Want an FBO Customer for Life? Try Making the Customer Your Fan

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By Ron Jackson

“Being a fan doesn't mean being there from the start. It means being there ‘till the end.”
-Anonymous

It’s time for a role reversal in the FBO customer service industry.

Ever since the term “customer service” was first used, our corporate view has been to put the customer on a pedestal and do everything to make them happy. That’s all fine and dandy, as Forrest Gump would say, but it’s a rather dogmatic and reactive approach that can make your customer relationship fragile and leave your employees feeling frustrated.

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Want to Deliver a Better Customer Service Experience? Start with External Operational Audits

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By John L. Enticknap

What does an external audit program have to do with delivering a better customer service experience? Let’s explore the possibilities.

One of the most popular events at the National Air Transportation Association (NATA) FBO Success Seminar, conducted by the Aviation Business Strategies Group, is a discussion on lowering FBO insurance rates through better operations management. This includes training the CSR and executive staff on safety, customer service, technical procedures and practical application of quality aircraft ground handling techniques.

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NATA’s FBO Leadership Conference: A Gathering Worth Attending!

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By John L. Enticknap

 Take the attitude of a student, never be too big to ask questions, never know too much to learn something new.          —Og Mandino 

As a principal of Aviation Business Strategies Group, I’m always tuned into the FBO industry and attend various workshops and seminars to keep abreast of our ever-changing industry.

At the National Air Transportation Association (NATA) Leadership Conference and Day On-the-Hill, which I just returned from, I had the opportunity to rub shoulders with more than 200 industry leaders and get a sense of what is happening to the FBO business on a macroeconomic scale.

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Improving FBO Productivity in 2012: Business Strategies for Better Success

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(Part 3 of a 3-Part Series: Planning a Successful 2012 FBO Business Strategy)

By John L. Enticknap and Ron R. Jackson, Aviation Business Strategies Group

 Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.          —P. J. Meyer 

 

In the first two installments of this three-part series, we discussed “Our FBO Business Outlook for 2012”  and “Decreasing FBO Costs in 2012.” In this third part of our series we discuss ways to improve FBO productivity in 2012.

First of all, the key to executing any business initiative is to set realistic and achievable goals supported by workable strategies to accomplish these goals. As the P.J. Meyer quote suggests, intelligent planning and a focused effort are required. Here are three goals and supporting strategies we recommend to put you on the right productivity track for 2012:

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Decreasing FBO Costs in 2012

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Cash Flow and Controlling Expenses—Managing Your Business
(Part 2 of a 3-Part Series: Planning a Successful 2012 FBO Business Strategy)

By John L. Enticknap, Aviation Business Strategies Group

 The buck stops with the guy who signs the checks.
                                                                —Rupert Murdoch 

In the first installment of this series, we discussed our FBO Business Outlook for 2012. At the recent NBAA Schedulers & Dispatchers Conference held in San Diego, we had a chance to discuss this outlook and the current business climate with a number of FBOs in attendance.

Many we talked to agreed with our forecast of a slow uptick of around 2.5 percent average industry growth in 2012, with some individual FBOs experiencing up to 5 percent growth or even possibly more.  We met a number of FBO owners and managers who indicated they were ahead of the 2.5 percent growth rate for 2011 and expect to do better than the 5 percent growth projection for 2012.  And of course, some indicated 2011 was a flat year and they didn’t expect to do much better for 2012.

For this installment, part two of our three-part series, we want to discuss ways FBOs can better manage and even decrease their costs in 2012.

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Planning a Successful 2012 FBO Business Strategy: A Three Part Series

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Part 1: Our FBO Business Outlook for 2012

By John L. Enticknap and Ron R. Jackson, Aviation Business Strategies Group

 Get your facts first, then you can distort them as you please.                                                                                                                                          —Mark Twain 

Recently we received a call from one of the major business aviation publications asking for our outlook for the FBO business in 2012. As writers, practitioners and consultants to the business aviation community, we are often contacted by the aviation trade press for our views on various industry subjects.

We have our ears and eyes glued to the FBO market, and recently completed one of our FBO Success Seminars for the National Air Transportation Association (NATA), so we have a pretty good pulse on the health of the industry.

Looking into the FBO Crystal Ball for 2012

First of all, in today’s political environment—especially with an election year upon us—it’s hard to get a good read on what’s going to happen in 2012 on a national level that will affect our FBO industry either positively or negatively. If you’ve watched any of the debates, you probably think ‘ol Mark Twain hit the nail on the head. You might as well wet your finger and hold it up in the air to see which way the economic wind is going to blow.

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Not All Customers are Created Equal

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Or, Sometimes You’ve Got to Tell Them How the Cow Ate the Cabbage!

 By Ron Jackson

 Recently we completed our fall NATA FBO Success Seminar in Atlanta and we had a great turnout of FBO attendees representing locations from as close as the Atlanta area to as far away as Grand Rapids, Michigan, and points in between. We were fortunate to have as one of our sponsors AC-U-KWIK, and Jodi Espinoza made a very informative presentation.

One of our discussion topics at the FBO Success Seminar is how to work with customers who want everything but are not willing to pay for anything. Sound familiar?

The old adage “The Customer is Always Right” is usually true. However, every once in a while you run across customers who break this general customer service axiom. They seem to know everything, want everything, and want it now. Unfortunately, these customers usually don’t purchase a lot fuel, if any. Yet we manage to spend an exorbitant amount of time, resources and energy trying to make them happy.

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Your Airport Lease: The Lifeblood of Your FBO

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by John L. Enticknap

If you build that foundation… the business foundation, and the experience foundation, then the building won't crumble.—Henry Kravis

Like most FBO owners and operators, you probably wonder what your FBO is worth. To answer this question, you should start by asking another important question: What is my lease worth? That’s because they are inherently linked. 

If you are thinking about capitalizing your investment or looking to sell your business, the first thing a banker or a buyer will assess is the value of your lease, especially the length and terms. 

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What’s Your FBO Insurance Story?

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A better way to impact your bottom line!

 

Insurance for FBOs is a necessary business expense with a huge impact on your bottom line. Wouldn’t it be nice if you could effectively manage this activity and even reduce the expense?

This is one of the subjects we cover in detail at our next NATA sponsored FBO Success Seminar, scheduled for November in Atlanta. However, for now, here are some ideas you can incorporate into your business. 

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Use Good Customer Service Ingredients, and the Proof Is in the Pudding

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A loyal, happy customer remains a customer for a greater length of time. So you should be tracking your customers to make sure they are coming back to your facility every time they travel to your destination. You can use a flight tracking service to monitor incoming flights.

Your line service personnel should become familiar with regular customers’ aircraft registration numbers and be alert when tracking inbound flights to your airport and surrounding airports.

If you haven’t seen a regular customer in a while, pick up the phone and call to learn why. If your line service personnel notices a regular customer going to a competitor, again, pick up the phone and find out what you might have done wrong.

Source: Strativity Group, in partnership with Customer Service Experts.Research shows that most unsatisfied customers won’t tell you there is a problem before they jump ship. They simply change their buying habits. So you need to know why they made a change and why they became unhappy with your service.

Loyal Customers Lead to Financial Rewards

As the chart indicates, a happy customer is a loyal customer and stays with you for a longer period of time.  A satisfied customer also tends to spend more and, thus, take on more fuel at your facility.

And oddly enough, a satisfied customer does not need incentives or discounts to continue being loyal. In fact, they do not mind paying a small premium to be treated well.

In the end, the payoff for delivering a truly memorable customer service experience is a contingent of loyal, highly engaged advocates who will recommend you at the drop of a hat.

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When Negotiating the Best Fuel Supply Agreement, Preparation Is as Important as Price

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Your fuel supply agreement is one of the most important contracts in operating a successful FBO. Your lease with the airport authority is what puts you in business, but your fuel supply agreement is what keeps you in business.
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Lessons of $1 Hot Dogs Help FBOs Cut the Mustard

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Recently, I read a sidebar article about Dollar Hot Dog Night at the Rangers’ stadium. On Wednesdays when the Rangers are in town, they cook some 65,000 hot dogs for hungry patrons. At a buck each, the promotion attracts a lot of families to the game, and the conies are quickly snatched up!

The Art of the Deal

I’m sure you have your favorite sport, and if it’s baseball, you know how a hot dog with your favorite beverage tastes on a warm summer night around the diamond. It hits the spot! But something else is going on at the ballpark.

In the article, the writer asks a university professor for his opinion on why a $1 hot dog attracts so many to a game when patrons can have all the hot dogs they want for a lot less money by buying them at a supermarket and eating them at home.

His answer, posted in the Dallas Morning News, is what spurred me into writing this blog post.

According to Ernan Haruvy, a management professor at the University of Texas at Dallas, a perceived deal, such as the $1 hot dog, depends on several factors, including:

  1. Your physical surroundings
  2. The customer’s mood
  3. What the customer believes is a fair value for the transaction

OK, that all sounds logical because the customer is at the ballpark; therefore, the surroundings are fun. Secondly, because a day watching baseball is better than a day at work, the customer is probably in a pretty good mood. And lastly, $1 for a dog that usually costs $4 seems like a relatively fair value.

But what does this have to do with an FBO?

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Municipalities Competing with Private FBOs: Fair or Foul?

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As many of you are aware, over the past couple of years there has been an effort by a number of municipal airport managements in the United States interested in entering the aviation services business where private enterprise providers already exist.

It’s a political hot potato to be sure. No one is suggesting that municipal airport-managed FBOs should not exist. There have always been airport-managed FBOs providing essential services at small and large airports, and for good reasons.

The controversy arises when a municipal airport authority decides to either compete with or edge out an existing private FBO enterprise. This begs the question: Is it fair, or is it foul? To answer this question, let’s examine both sides of the issue.

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Reeling in Customers: Either Fish, or Cut Bait

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I have returned from a much needed vacation to the Canadian outback where I enjoyed a week of fishing with no phone, TV or newspaper.

Every year, I travel to the far western reaches of Ontario for our annual fish camp outing that has been a part of my family tradition since 1961, when my father first went with his buddies to the same waters we fish today. I started going with my dad in 1984, and now his 16-year-old great-grandson, my grand nephew, is representing the fourth generation to wet a line in these great Northern waters.

On this most recent outing, I started to think about writing a blog post based on the similarities between fishing for dinner and casting a net for new FBO customers.

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When Pricing Fuel, Use Numbers to Your Advantage

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We know the pricing game all too well. Gas stations and auto dealerships have conditioned us to react to pricing of a product or service by offering a perception of a good deal.

In the FBO fuel pricing arena, we tend to play the same game.

In a previous blog post, FBO Fuel Pricing: Seeking a Silver Bullet, we discussed some pricing theory and came up with some ideas to find the silver bullet — which is the best price.

In the FBO business today, some customers call ahead for fuel prices, seek to use contract fuel suppliers and try to negotiate when they arrive on your ramp. We would like our customers to believe that our prices are well thought out and not just some arbitrary posted numbers.

Knowing how customers interpret numbers can help your FBO make stronger pricing decisions. What we would like to discuss here are some thoughts that go through people’s minds when they are looking to purchase.

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Coaching Provides Valuable Seasoned Advice

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At some point in our lives, we all need a little coaching to get through the task ahead of us.

I remember when my dad took the training wheels off my bike and encouraged me to keep the handlebars straight as he ran alongside on my first solo ride.

High school football and baseball coaches shaped the way I performed on the field and taught me valuable lessons about life along the way.

As a student pilot, my instructor coached me through turns and stalls and built up my confidence for the eventual solo flight.

After a couple of decades of developing marketing plans for companies such as Cessna and Fairchild Aircraft, I had the opportunity in the year 2000 to create a public relations campaign for the grand opening of a Mercury Air Center location in Burbank, Calif. My client was John Enticknap, who served as president of the 21-location FBO chain. 

I didn’t have a lot of experience in the FBO business back then, but under John’s tutelage, I’ve been spending the last 11 years soaking up his vast knowledge of the FBO business.

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