AOPA Annual Report

CMongoose

CMongoose

Pre-takeoff checklist
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CMongoose
I just took a look at the AOPA annual report interview.

https://www.aopa.org/news-and-media/all-news/2017/june/pilot/aopa-annual-report

Including the chart below.

1706p_ar_069_9x16.jpg

Their commentary says "Because of increasing investment in core member engagement areas, such as You Can Fly and the regional fly-ins, AOPA took an operating loss in 2016. The impact was lessened thanks to continued and aggressive cost-saving efforts."

As I look at the chart above, it looks like they are spending $10m offering a set of products and services that brings in $5m in revenue. That would seem to be the bigger loss source than the $3m increase in member engagement ($2.7m was the 2015 spend on that).

Am I missing something?

I don't think the products and services are that unique that they are filling a gap in the market that is required to maintain the industry, but I don't know that for sure.
 
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I can't think of one "product" AOPA offer that is worthwhile...MAYBE the legal services...but I've never actually used mine.
 
They can drop the flight planner but their insurance and title and escrow services are good.


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In my case, I shopped the entire market and they were the best for insurance.

They also fought/are fighting the Continental MSB before the FAA issues an AD (Mike Busch, Twin Cessna Flyer, COPA and others are as well). This looks like it is going to end up in an AD that makes more sense than Continental was hoping for and going to save thousands of GA aircraft owners that would be effected. (Including myself).

For me, I feel they are worth the yearly cost.
 
I remember when AOPA had services that I really enjoyed. A good credit card, very competitive CD, chart services/discounts, good rental car discounts etc. Now everything they offer costs more - which is why I am no longer a member.
 
Looking at the pie charts, I wonder:

to which expense category do they charge a Memorial Day junket in the jet to the Florida Keys?

Is that "advocacy and representation", or "Member engagement," or "Management and general"?
 
Clip4 said:
I remember when AOPA had services that I really enjoyed. A good credit card, very competitive CD, chart services/discounts, good rental car discounts etc. Now everything they offer costs more - which is why I am no longer a member.
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I remember too...My membership (in the past) cost $29, then $39, then $49, and it saved me $50 on insurance...I don't get much out of it anymore other than a "basically free" magazine. Now that it costs $69, I probably won't renew, unless my insurance agent says the AOPA discount is now (about) $70.
 
$6m a year in "Membership development."

I once told one of their sales staff if they lowered their fees proportional to the amount they'd save by not mailing letters and/or calling folks regularly that I'd consider rejoining. Now I know it's > 10% of the pie is spent on that stuff.
 
That "Advocacy and Representaion" line is the key item. I'll bet that most, if not all of that, is DC payoffs.
 
FlyingElvii said:
That "Advocacy and Representaion" line is the key item. I'll bet that most, if not all of that, is DC payoffs.
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Without that advocacy and representation and those payoffs we'd all have to get ADS-B by 2020 and we'll soon all be paying user fees to land at a class D for a hamburger.

Oh wait...
 
Todd82 said:
mailing letters and/or calling folks regularly
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Not everyone knows it, but you can stop all those AOPA fundraising phone calls just by asking.

About 8 years ago, as a new AOPA, I almost quit because I was so aggravated by those phone calls, and the letters as well. I phoned membership, asked them to stop, and they politely did so immediately. It made life good again.
 
Im an insurance customer as well as as a cfi online renewal customer. My only objection is they don't extend me complimentary membership as a function of my patronage of two of their more expensive products. That customer scoffing stance bothers me so I don't patronize their membership as a matter of principle.
 
They could cut their costs in half if they sent me the "JOIN NOW!" letters every month instead of every two weeks.
 
As much as people disparage the join now and renew letters, they have been proven to work. I have seen the renewal rates for a couple of other non-profits. They just consider it the cost of doing business.

Tim
 
tspear said:
As much as people disparage the join now and renew letters, they have been proven to work. I have seen the renewal rates for a couple of other non-profits. They just consider it the cost of doing business.

Tim
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I see, so you tend to favor people and things that annoy you ?
 
Art VanDelay said:
I see, so you tend to favor people and things that annoy you ?
Click to expand...

Too easily annoyed or your life is too good if this is what keeps ya up at night!


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Art VanDelay said:
I see, so you tend to favor people and things that annoy you ?
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Yes, why do you think I watched Seinfeld? :D
Just kidding. I was commenting on why AOPA does it. Not that I condone it. I have found spending two minutes to contact most of the organizations that do this to say you are not renewing ends it. Or you can just keep throwing the stuff in the trash.

Tim
 
Aopa has nice reserves. There will be a very soft landing should there be any operational losses.

Aopa has done challenges ahead. I have never heard the number of people leaving as I have in the last 18 or so months.

On insurance, before you lock in with aopa call a broker. My experience has been awesome and no regrets leaving aopa insurance.
 
GLMS_NC said:
On insurance, before you lock in with aopa call a broker. My experience has been awesome and no regrets leaving aopa insurance.
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Not doubting ya, just wanted to note that AOPA is themselves, merely a broker too.
 
hindsight2020 said:
Not doubting ya, just wanted to note that AOPA is themselves, merely a broker too.
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But what are their markets? No way it compares to what others have, which is my point.

I encourage everyone to market their renewal. Never settle for status quo.
 
GLMS_NC said:
But what are their markets? No way it compares to what others have, which is my point.

I encourage everyone to market their renewal. Never settle for status quo.
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They shop it to the same set of insurance companies as the rest of the brokers. It's not like there are hundreds....


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There are actually 18 different insurance companies in the US actively writing Aviation business. Of course each of those have different appetites for aircraft, pilots, etc.....so not all will quote every submission that gets sent their way. With that said, not all agencies are appointed with every market either - AOPA is one of those. Make sure you do your research when choosing an agency to work with and if you aren't getting the attention you think you should be getting, find a new one.

Tim Wanasek
Falcon Insurance Agency
 
Tim Wanasek said:
... not all agencies are appointed with every market either - AOPA is one of those. ...
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Tim. just to clarify, are you saying that AOPA does or does not have access to all 18 insurance companies? Do some or most agencies have access to all of them?
 
Moreover if say our insurance is already placed with AOPA, what are the odds that you would be able to do better, with companies AOPA didn't get quotes from?

Also I moved to a new insurance company and have only been there a year after many years with AIG, is there any downside to moving around...


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Also Avemco only goes direct, not through brokers.
Not sure about AOPA, but many brokers are not listed with all of the underwriting firms.

Tim
 
airdale said:
Tim. just to clarify, are you saying that AOPA does or does not have access to all 18 insurance companies? Do some or most agencies have access to all of them?
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They do have appointments with quite a few, but not all the Companies.
 
gsengle said:
Moreover if say our insurance is already placed with AOPA, what are the odds that you would be able to do better, with companies AOPA didn't get quotes from?

Also I moved to a new insurance company and have only been there a year after many years with AIG, is there any downside to moving around...


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It's hard to say without knowing the details of the risk and who you are currently insured with.

The Insurance business is all about relationships. Constantly moving around from Company to Company isn't the advice I would give. Building a long term relationship with a good Company that you trust will take care of you if a loss occurs is important. One move after being with AIG after many years is fine.

Tim Wanasek
Falcon Insurance Agency
 
tspear said:
Also Avemco only goes direct, not through brokers.
Not sure about AOPA, but many brokers are not listed with all of the underwriting firms.

Tim
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Spot on.

Tim Wanasek
Falcon Insurance Agency
 
Tim Wanasek said:
It's hard to say without knowing the details of the risk and who you are currently insured with.

The Insurance business is all about relationships. Constantly moving around from Company to Company isn't the advice I would give. Building a long term relationship with a good Company that you trust will take care of you if a loss occurs is important. One move after being with AIG after many years is fine.

Tim Wanasek
Falcon Insurance Agency
Click to expand...

Not sure your experience, but many of us were "encouraged" to move on from AOPA last year....


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