And you defaulted to the most money you could spend for each vendor's entire package, which anybody who's done it knows is totally unnecessary.
I actually chose the less expensive options when there were multiple options, but I think they normally have package pricing and I didn't see that anywhere on their site.
Contrary to your implied assumptions, we're just planning to fly it; we're not planning to show it at the fair.
Not at the fair... But the first impression that a non-pilot gets is very important. (See what Mari and Chris said.) So we are "showing" it to an extent. Does the cracked plastic on the inside of the baggage door matter? No. But a lot of broken plastic, worn seat covers, etc. do matter to some people.
Hourly rates for journeyman A&P (not that you need one for most of this stuff) is ~$25 including P/R tax. What are you paying?
$65/hr for maintenance and $75/hr for avionics at the home drome. And that's with a discount for based customers...
I've heard of much worse, but there's better too. We're taking our planes off-field for annuals because we found a shop elsewhere that does great work for more reasonable prices and it pays to go there despite the 3 round trips it takes to get it done. (1 for the plane getting annualed, 2 "chase plane" trips to reposition the pilot.) I don't think the hourly rate is much different, but they seem to be more efficient in getting things done and doing them right.
OK, now we're finally getting somewhere. What's your revised number after the reality check?
Well, if we use your $2K to rehab the paint instead of fully repainting, and we can probably do the interior for $3K sans install. Used 430W, $6500 on the cheap end. Aspen, I don't think you'll find used, so we're probably on the hook for the full $6K there. GPS&Aspen install, we're still stuck going to an avionics shop - I don't think an independent A&P can work on those, right? So, probably still a good $2000-$2500 for the GPS, make it an even $3K with the Aspen. Call it a grand for the interior - 40 hours at $25 each about right?
So... $55K-$60K still. Better, but still not half of my sub-$80K LSA.
My best-case scenario would be to have somebody as a competitor who spends money like you're proposing to do. I would own them (or what's left that's worth buying) in six months.
If they spend frivolously, sure... But my best-case scenario would be competition from people who refuse to adapt, appeal to the widest possible audience, and use some new ideas.
Realistically, I would want BOTH the LSA and the 172. While the LSA gives them something to start off in and get to the point where they can fly on their own for the cheapest price, the availability of the 172 (and if I can afford 3 planes, that 182RG) gives them something to grow into that they can take the family on trips in, and an incentive to continue beyond the Sport Pilot certificate.
What drives me nuts is seeing flight schools with fleets of underutilized 172-class airplanes and zero LSA's. Businesses must adapt or die, and for some reason we in GA are not very good at adapting.
No, that's your number. I don't think it's reasonable, and never said or implied that.
You said "half the cost" of my LSA, which I already said was going to be south of $80K.
Can I put a nice-looking glass-equipped 172 on the line for a lot less than the cost of an LSA? Absolultely guaranteed. Will I have to charge more rent? Nope. The operating cost deltas are peanuts compared to the fixed and capital costs.
Except that as fuel prices climb, the 172 will cost more and more to operate.
Also, what would you disagree with from my analysis in
post 241? While the fixed costs are higher, the variable costs are MUCH lower in the LSA.
I made a spreadsheet (are you surprised?
) and using the numbers from that post, ran several scenarios:
1) Both 172 and LSA are $100/hr. At 300 hours/year, I've made some chump change but you're still $4200 in the hole. 500 hours/year, I've made $12,000 profit and you're still in the hole. At 750 hours/year, you've made a measly $3,800 and I'm over halfway towards buying the 172 off you, or 1/3 of the way to my second LSA.
2) 172 at $120/hr, LSA still at $100/hr. At 300 hours, we're both just barely in the black - You at $1,771 and me at $642. At 360 hours, I pass you. At 500 hours, We're both doing pretty well, assuming you can convince people that they should spend $20/hr more to fly your old airplane than they spend to fly my new airplane - You've made $9371 and I've made $12,042. At 750, you've made nearly $19K, I've made over $26K.
3) Charging $120/hr for each. After 250 hours, I've made $2800 in profit and you're still in the hole. 500 hours, you've got your $9,371 and I'm out of the poor house with $22,042. 750 hours, you made $18,871 but I bought your airplane with my $41,292.
Higher fixed costs, on any airplane, means we need more hours per year to be able to pay those costs while remaining at a reasonable price point. At the same price point, I would suggest that more people will choose to fly the LSA than the 172 - It's new, it has GPS, and the extra two seats are worthless for training anyway.
I've talked about hours to break even before - Let's talk about rental price to break even. At less than 170 hours a year, the 172 will break even first. Example: At 120 hours/year, it would take $162.24/hr to break even in the 172, or $180.15/hr to break even in the LSA. At 170 or so, they cross, both being just shy of $140/hr, which is still kind of at the upper limit for what I think people outside the expensive states are willing to pay. At 520 hours/year (10 hours/week), the 172 would break even at $100.52/hr, the LSA at $74.65.
No, I'm not trying to break even - But you need to be charging more than those numbers to make a profit. Granted, they're within $10 of each other up until 240 hours/year, so if you can't get the plane to fly at least that much, it's still almost a wash between 170-240 hours/year. But at 240 hours/year, the 172 still needs $122.12/hr just to break even, so you're looking at charging $142/hr to make under $5000 in profit. That's already to the point where the hourly rate is going to be affecting the number of hours per year, IMO.
After one flight in each, do you really think pilots will choose those glorified kites over real airplanes?
And that right there is why I will have more students than you. With a very few exceptions that I think are terrible designs, LSA's *are* real airplanes, not "glorified kites." The ones I've flown fly quite well and are fun to fly. And yes, I think that after one flight in each, your average newbie student pilot will choose the LSA over the 172 in a heartbeat. Remember, they don't have the same biases you do, Wayne - All they know is that they both fly, but the LSA has nice avionics and doesn't smell of rotting 100LL. (Yet, anyway. LOL)
And BTW, your previous post extolled their slow cruise speeds as one of the virtues of the LSA's. Can you point out the posts on any forum from pilots who were seeking ways to downgrade so they can fly slower?
I didn't say that slow cruise speeds were a virtue of LSA's, merely that because of the artificial limitation in cruise speeds, they tend to have larger cabin cross sections and thus more comfort. Besides, they're still every bit as fast as a 172, and they tend to perform better than a 172 in such things as climb rate, takeoff and landing roll, etc.
How in the world will that guy have a clue about what "new vs. old" looks like in an airplane if he's never seen one?
I'll tell you why I think the KLN94 looks old: It uses what looks like a 16-color display. Y'know, like an Apple ][ did back in the 80's. The other Kings use monochrome displays, as do the older Garmins. At least the older Garmins are LCD.
But if my assignment is to compete with some high-priced two-seater, there's no question that I can do it effectively.
Please point out where my numbers are wrong. (Post 241 shows the SWAG's for an $80K slightly-used LSA vs. an old 172 without the upgrades.) Because, it sure looks to me like the only way the 172 beats the LSA is when the number of hours per year is so low as to make the business unsustainable in either case.
Not that I ever will, or will ever want to, because as previously stated I think anybody who gets in this business is nuts.
Sadly, on this we agree.