Tue Jan 15, 2013 10:11 am
Over the counter sales in aviation have been doomed for some time. The internet killed it. We all want cheaper prices for everything from soap to condoms, yet still want a store to go to. Well, you can't have both. Most folks do not patronize their local FBO with their purchases, then expect to be greeted by a host of services for free. Well only in the magic land of OZ does that system work. Yes small business is squeezed, I myself, will most likely sell my interest in the repair station and paint shop this year. I already got rid of the FBO. It isn't only taxes, we are being regulated, not restrictive regulations, but carloads of compliance forms, surveys, inspections and nitpicking fees and programs we must have.
The Feds have led the way in the last 10 years with BS make work programs for underutilized civil servants. Example; Drug programs. We have to participate in a drug program (albeit less than .01% of aviation workers ever tested positive, can hospitals say the same?). We have to pay a private firm to monitor our drug program and choose workers to be tested (annual cost is high, for essentially a random number generator). They also provide us with the current government issued posters concerning the big bad drug problem. We cannot get them from the government, they must come from the program manager. Well, we had an audit last year, took up 2 days of our time, for exactly nothing. They found our posters out of date and wanted to fine us $10,000. After days wasted dealing with this, we had to get congressional intervention. We have no control over the posters, why are we being fined? Anyhow, about three weeks of time wasted to satisfy some peg at the washington pegboard. So, wonder why small business is being done in?
Small business do not have Human Resources departments, It comes out of hide. So time spent with a government martial aid, is not devoted to making money, killing margin. Couple that with owners looking to lower their costs, yeah many will disappear. I feel very sorry for my buddy and his repair station in California, he is going to throw in the towel in a year as well. Little or no profit in the last 5 years and he spends even more un-productive time with the aids in that state.
Oh, have not even touched the Federal Amusement Administration…