I decided to explore entrepreneurial ways of making money about 2 years ago and it’s been a bumpy ride, had a lot of failed ventures, but it’s finally starting to work out! I recently got a job as an aircraft mechanic at a small airport and got to know a lot of the pilots fairly quickly.
The guy that washes people’s planes was overcharging them but there was no competition, so most people just left their airplanes dirty. He was charging like $150 per wash! So I spread the word “I’ll do an initial wash for $120 to knock off all the caked on grime and bugs” and then I’d offer to let them opt into basically a wash subscription. $80 per wash if I wash the plane monthly. Takes me less time to wash it anyways and it keeps the cashflow steady.
Basically, I charged almost half what the competition was doing it for. It’s been 20 days and I already have 6 planes subscribed to my monthly wash program, one of which is a twin engine so I charge $120 for it, bringing in a garunteed $520 a month excluding other odd jobs, and averaging about $45 per hour of labor with very low overhead. Feeling pretty good about it!
So you’re winning clients by competing on price. What happens when the competition drops his to retain/win clients? Or when somebody new comes along and undercuts you both?
Number one rule is never compete on price to win business. Its a race to the bottom and clients you win on price you will lose on price every time.
I’m in a unique position in that regard. My sole competitor within a 60 mile radius is actually giving me clients because he’s moving onto business jet contracts which pay more. The skill and knowledge needed to properly wash an aircraft is a barrier that the average joe won’t cross. So far, my business is secure, but how would you recommend I stand out from competition if I decide to expand from the local area?
$45/hr before tax? How much is the equipment? Sounds like you have a job versus a business. Unless you charge enough to pay someone else to do it. Do you even have insurance?