Originally Posted by DaveW
My simple thoughts follow:
I start from the proposition that Fixed costs are what it would cost you to have a legal aircraft in the hangar, even if it was never flown. That figure is then divided by the number of Group members and again by 12 for individual monthly rate. Groups I've been in will round this up to the nearest £5 or £10 to cover contingencies.
Includes: Insurance; Engine fund*; hangarage; radio licence fee; CAA fees (e.g. CofA , divided appropriately) etc.
In our group I took the view that I'd rather keep the hourly rate down and the monthly high, as estimates of usage are usually optimistic.
It has had 2 effects:
1) The airborne time pays for the fuel and oil and engine fund, and a proportion of the maintenance, so being low encourages flying
2) Once the standing order for fixed costs is set up, people tend to discount it. It hurt initially, but then we got used to it
Having seen too many 'hangar queens' in my time, I want our baby to be flying as much as possible.
Other groups take the view that rather than planning in advance for major expense, they agree to pay out for large bills by a levy. That can work, but can also be risky, when someone has a change in circumstances. Just as a backstop, we also put in a deposit on joining which is enough to help cover unexpected bills. It is returnable once a share has been sold and the new member joins