Abby's Ramp Ramble - FBO Takeoff: Cleared for Profit

When fuel prices go haywire, does your FBO maintain straight and level? Do you crumble under the pressure, take losses and suffer? Or do you rise to the occasion, find alternate solutions and push your product forward? Businesses, especially in aviation, always encounter surprises that can slam the brakes on heavy loads. FBOs in particular face unique challenges when markets fluctuate.After seeing nothing but red, upward arrows on regional fuel averages for the past two months, I asked FBO managers how they maintain profits and grow margins in any market. This ramble aims to compile their tips and tricks for maintaining and boosting FBO profit year-round."While I Have You Here..."Upselling can be a tricky task, especially after a price spike. Do it wrong, and your clients feel cornered by a greedy salesman. Do it right, and you present your clients with alternate solutions and previously unknown benefits while strengthening relationships. Just be strategic - what you upsell and when you do it matters.Upselling is most effective when the client has expressed an actual need. They might mention it, or you may guide them into it with leading questions. Either way, the more casual you can be about it all, the better.In practice, upselling can begin with a prospecting question from line crew, like: "When was the last time you changed your oil?" Conversely, a pilot might mention a desire to save money on fuel or that they visit the airport often; an FBO with a discount or volume program would have a natural opening to discuss.If you're reading my rambles, there's a good chance you're already familiar with these moments. What matters is ensuring your team is trained on all product and service offerings and is comfortable discussing them. Online resources like Salesforce offer free basic training articles on upselling, which can be a helpful resource for staff still building those skills.I've worked with several FBOs that offer fuel reward programs. Beyond staff mentions, prominent and consistent signage throughout your facility helps reinforce awareness and interest. Even so, it is usually line crew and CSRs who bring clients across the finish line with friendly, helpful interactions.One FBO I spoke with sells oil by the case, something that caters to their specific client base. Nearby competitors only stock quarts, while this location buys in bulk and casually mentions rates to incoming customers. It ends up being a welcome surprise for customers and a quiet differentiator for the FBO.I also spoke with a municipal FBO that is board-directed and unable to offer many additional services, either due to lack of demand or limited resources. Without much to push in terms of amenities, it is left to upsell the one thing it can: people and service. The secret to FBO success (which will have its own section later in this ramble) always comes back to the lovely people on the ground.I recently visited Castle Aviation at Akron Canton Regional (KCAK), which offers a fully stocked merchandise shop with T-shirts, hoodies, backpacks, hats, thermoses and locally sourced honey. The display sits directly in view of the front desk, combining a minor revenue stream with a major branding opportunity. Merchandise won't replace fuel sales, but it can lightly pad revenue while putting your brand in passengers' hands long after they've left the ramp.?Castle Aviation's merchandise shop at Akron Canton Regional (KCAK)Friends in High PlacesIf your airport is near a popular tourist destination but has no connections with local resorts, lodging or area events, you might be missing significant opportunities. Not every FBO has this advantage, but those that do should maximize it.I know of an FBO operating near gorgeous getaway cabins in a rural area. They have collaborated with these businesses on shared marketing dollars with the intent of boosting traffic for both the airport and local attractions.On the corporate side, FBOs are constantly servicing travelers headed to meetings and vacations, or flight crews arriving on empty legs. Those individuals are often prime targets for nearby resorts, hotels and restaurants. I've even spoken with FBOs that have referral programs with nearby golf courses. If you have healthy jet traffic, or are looking to grow it, it's worth networking within your local economy for collaboration opportunities.In addition to local businesses, many fuel providers offer marketing assistance to client FBOs. Fuel brands understand the bottom-up branding benefits of supporting FBO partners, often assisting with marketing campaigns or exhibiting at major industry conferences. If you are serious about marketing, be sure to reach out to your designated fuel representative to find out what is available.One FBO manager reinforced the importance of maintaining relationships with key hotel, rental and catering contacts in the area. These collaborations may be less marketing-focused, but strong relationships can be the difference between a trip-saving catering order and an unhappy client, or even a broken pump and a timely repair.Some FBOs cut out the middleman and partner directly with customers. This is often structured as contract rates in exchange for committed use and can be a great way to boost relationships and guarantee traffic.Managing risk within your third-party partnerships is important. Volatile or difficult companies can create long-term issues for your own operations. Seek out partners who are reliable, responsive and aligned with your goals. Just like any relationship, choose your partners wisely.Just Be NiceDo you know what's really nice? A warm cookie or freshly ground coffee on the counter, a courtesy car topped off and ready to go, a personalized greeting for returning customers. All of which can set your FBO apart from the competition.Southern Sky Aviation at Trent Lott International (KPQL) is a great example of this philosophy in action. They offer a soft-serve ice cream machine, complimentary sodas and snacks, and an on-site restaurant, The Sky Cafe. If it makes sense to offer it, Southern Sky will find a way to provide it.Some managers mentioned giving quick tire changes or minor repairs as an occasional complimentary offering. Several gave examples where a small gesture led to a larger fuel sale - and, subsequently, returning customers.That secret to FBO success I mentioned earlier? It's people. Come on, you knew it was coming.I may sound like a broken record, but I'll keep saying it until it isn't true: Who you know is important, but word of mouth can be your most powerful friend or foe in aviation. What's the best way to spark conversation? Provide exceptional and unique experiences.Several of the managers I spoke with echoed a "yes, and" attitude. For those unfamiliar, "yes, and" is an improv tool meant to keep scenes progressing. Rejecting an idea stalls momentum, even when it feels natural. Instead, improv comedians are trained to agree first, then build in a new direction. This keeps the scene, and hopefully the laughs, rolling. Who knew fuel service had a pipeline to improv comedy?From a customer service standpoint, avoid saying "no" when possible. This isn't about cases where a customer is acting inappropriately, being obstinate or asking you to actually move mountains. This is about nonroutine or additional requests that, while potentially disruptive, can position your FBO as one that goes above and beyond.What might this look like? Recall the example from the upselling section about a pilot mentioning a desire to save money on fuel. Perhaps the pilot asks your staff if they can get a discount. Rather than a full-stop "no, sorry" response, a "yes, and" approach might sound like: "Certainly! While we can't apply it to today's purchase, we offer volume discounts that can make a real difference on your costs if you're planning on fueling here regularly."RELATED STORIES:Abby's Ramp Ramble - Fee'd your FacilitiesAbby's Ramp Ramble - Ground Crew Glue: Recruiting and Retaining Quality FBO StaffFor the sake of balance and your own wellbeing, do not overextend. As much good as it can do to be a "yes, and" operation in this industry, it can have adverse effects if you bite off more than your overhead or labor can chew. Understaffed or overextended FBOs tend to earn fewer positive reviews than those operating in top form.Even when markets fluctuate, there are measures FBOs can take to maintain or boost profits. Some FBOs will be more limited than others, and every FBO faces unique challenges, but all it takes is one good person to make a real difference.What are the most unique draws to your FBO? Thoughts about my thoughts? Contribute to these rambles by leaving a comment on this article or by emailing [email protected]. Safe fueling!Abby's Ramp Ramble is a monthly news and opinion column that serves the FBO industry. Abigail Sheets maintains the GlobalAir.com Airport Resource Center and serves as the director of ARC sales development. Her background is in aviation maintenance and management. She graduated from Purdue University with a BS in Aeronautical Engineering Technology and an MS in Aviation and Aerospace Management.