There is no flaw in my logic, and yes there are a few guys kicking around with no insurance, no morals, working out of a van and delivering pizzas on the side just to do this racket billing $50/hr or less…(some may or may not be on this forum). Using their full time employers tools etc.digits_ wrote: ↑Tue Nov 15, 2022 3:13 pmWho are you arguing with? I wrote that I would be ok with 115 / hour + travel time + mileage.Bug_Stomper_01 wrote: ↑Tue Nov 15, 2022 2:48 pmWow, your logic for mobile AME rates isn’t reality based. If said AME is traveling to you and signing your annual he absolutely charges for travel time and mileage (I also charge federally recommended perdiems). The extra “$40/hr” should be the convenience fee alone.
I personally do this kind of work as well when in Canada, and SeptRepairs rates are very reasonable.
You can’t align $50/hr full time with a sole proprietor or incorporation. There are several things to consider when a self employed AME does work on your machine;
•His tax bill , cpp and EI contributions are ALL on him (this is major and the GST, PST, HST wherever you’re located that’s on his invoice barely helps with that until tax time.
•Increased liability signing with his license vs under an established amo (private aircraft are the highest liabilities out there)
•Manuals he has to pay subscriptions for (just one of mine is $6000/year)
•If he has an amo there is a hangarage agreement therefore another cost (I do realize you’ve accounted for that in your reply, however something required by TC is a hangar arrangement at minimum for an amo) and that will cost something
•Insurance, on the business for contents, vehicles, health and liability
These are just a few things that a business owner / mobile AME has to pay for. The full time $50/ames are covered largely for this under their employer. For the convenience to have an AME come on site to work on your machine is easily worth double if not triple a hangar ames salary.
Having said that you also have to factor in what kind of work the AME can do (as he certainly should depending on the work he’s doing). Is he a structures guy? Does he offer vibration analysis? Is he D17.1 rated for welding? etc etc. There is no one fits all AME rate for mobile work but I think $115/hr for a remote annual is a bargain.
I said that that a 50/hour employee would likely want to make 75 / hour, which -if he charged 115/hour - would leave 40 / hour for all the expenses you mentioned. Depending on your business model, that may or may not be enough. If it's not, then obviously don't offer the service.
I'm wondering if you could give me some examples of where an AME working on a private airplane was held liable for damage. What situations are you worried about? Most liabilities I can think off, exist in pretty much any profession. Same for insurance.
And as mentioned in your insurance topic, doing the work under a corporation, and having all your assets in another one would offer you some protection there as well.
Then you go on to say:So to summarize: 115/hour is not enough to do this, yet you know people who do it for 50 / hour?Bug_Stomper_01 wrote: ↑Tue Nov 15, 2022 2:48 pm SeptRepair we’re on the same page here and I have had this discussion with customers and explained inherent associated costs ad nauseam why my rates are what they are.
Try owning equipment that needs annual calibration and repair that costs thousands per year alone to offer customers the service we do. $115/hr for mobile service is a bargain, personally I charge much more, but there’s always guys out there living in a van billing the GA guys $50/hr or less (cash) to do the “work”
Do you see the flaw in your logic?
Yes I can cite several instances where people were sued in this industry after an incident. Incorporating offers little protection without it being insured, a cost that’s mandatory. Even with insurance under civil law in Canada (simplified or not) things can get ugly.
People can be sued personally as well as corporations. I’ve witnessed it a few times in the industry. Just go on canlii and have a look for yourself, I’m not going to post public records here libelously. Keep in mind, those are the files that made it to trial! Not to mention files that ended after discovery.
Digits if you have been a business owner or an AME you would align more with what I’m talking about.
And to answer what I’m most worried about?
Simple;
•Owners wrenching on their own aircraft after my license is in the journey log with no maintenance entry from said owner maintenance
•Low time often older private pilots with questionable health flying antiques that I signed work for over built up populated structures.