Fuel Quality = Fuel Profitability

by Walter P. Chartrand
Vice President and General Manager
Hammonds Fuel Additives

Are you pricing for profit?

Well, that's a dumb question, you might answer. Of course we are! We're in business to make money!

Might seem like a dumb question -- even an obvious one -- but let me show you what I've learned along the way of a 20 year career in aviation fuels and fuel handling.

It's estimated that more than 80% of airport operators claim that fuel sales is their number one profit center. It so, we need to take a careful look at how we obtain, maintain and optimize that profitability.

All too often, we take for granted that our fuel supplier delivers our product on-spec, and of the highest available quality. The flip side of that scenario is that some operators give little regard to maintaining that quality once the product is in our hands.

Training: An Investment that Pays Dividends
It's essential that your line service crew and anyone else involved in marketing that product be professionally trained and fully knowledgeable about fuel quality maintenance. Why invest in this? Because fuel sales are what puts food on our table -- it's the number one profit center of our business.

To support this argument for training, there are also liability issues to consider. In the unlikely event of an aircraft incident or accident, we want to be certain we are able to rule out any fuel-related cause and responsibility. Looking at it from that perspective, the extra time, attention and training required to stay on top of this aspect of your business pays off in spades.

Another scenario: If your customer were to ask about your fuel quality procedures, or to see confirmation of fuel additizing, how would you respond? Remember, here, that there are fuel additives required for normal aircraft operation, and additives available for ongoing preventative maintenance that in themselves are excellent profit centers!

The Dollars and Sense of Your Pricing Structure
There may always be the guy down the field who will sell his fuel at bargain basement prices in an effort to lure in customers. And as frustrating as that might be to those of us who are competing against that to earn a living, it is our responsibility to our customers to provide them the very best product available at fair market prices. Your customers will appreciate it in the long run, and you'll earn their loyalty in doing so.

As a frequent speaker and training on the topic of fuel handling and fuel quality, I frequently relied on this to illustrate my point: Fuel is not something a pilot can pull out of his pocket, show his management and say, "See what I bought the company today?"

It just doesn't work that way. That's why effective -- and profitable -- fuel marketing is in many ways like effective service marketing. Sell your superior fuel product backed up by incomparable customer service and efficiency. You can't go wrong with that strategy.

The bottom line to all this is your bottom line. By incorporating these fuel quality procedures, you can go a long way in maximizing your company's profit.

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Walter Chartrand has been a member of NATA for the last sixteen years. He's been very active in the association as well, having served on several working committees, is an instructor at the NATA Line Service Training course, and can always be found at the annual Convention and Trade Show.

Walter has been involved professionally with general aviation for the past 20 years. He managed a corporate jet service center at Houston's Intercontinental Airport for eleven years, was with Exxon Company USA as an aviation fuel sales rep, and is currently Vice President and General Manager for The Hammonds Companies, makers of fluid additive injector systems and fuel additives. He is an instrument multi-rated pilot.

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