determining the cost to rent.

[Tom-D]

how would one go about setting the cost to rent your aircraft.

Say I wanted to allow pilots with a PPL and conventional gear sign offs to rent my 24, how would you go about setting that cost?

 

[Jim Logajan]

The simplest way is to find comparable models being rented out in your area, take the average of their hourly prices, and use that number to start.

 

[Jim Logajan]

The simplest way is to find comparable models being rented out in your area, take the average of their hourly prices, and use that number to start.

One correction: start with a rental price on the high side. An old rule-of-sales I learned years ago was that it is better, for psychological reasons, to err on the high side and adjust prices downward than trying to raise prices.

 

[Jim Logajan]

There are no comparable models to his bird.

There should at least be airplanes that rent out that have comparable fixed costs. The idea is to figure out at least what the market has found the optimum point on the price demand curve for airplanes with similar costs.

If that is too abstract, how about trying $140/hr and see if anyone bites?