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Please don't use Contract fuel???

El Bucho

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Jul 10, 2002
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So I've had this happen a couple of places. We try to use Colt for fuel most of the time. One place inparticular has offered us up to $1.00 off per gallon to NOT use Colt. Why would it matter to them whose credit card get's slid through? Just curious...

EB
 

MauleSkinner

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I've heard from one FBO that Colt has a history of going out of business and leaving some unpaid bills...it's apparently cheaper to give discounts than take a chance on not getting paid at all.

Fly safe!

David
 

SabreFlyR

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El Bucho said:
So I've had this happen a couple of places. We try to use Colt for fuel most of the time. One place inparticular has offered us up to $1.00 off per gallon to NOT use Colt. Why would it matter to them whose credit card get's slid through? Just curious...

EB
It has to do with the time it takes to receive the payment from the contractor. I have dealt with fbo's on a reglar basis that would offer us a better deal we paid with a Multi Service or some other card that pays off quicker..
 

smellthejeta

The plane I solo'd in
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Mar 31, 2003
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afew
My educated *guess* is that, among other things, the FBO might actually make more money by offering you discounted retail as opposed to the contract fuel rates. When dealing with contract fuel rates, the FBO makes money off of volume, and they are reimbursed their per gallon cost plus a profit margin. From what I've been told, the profit margins aren't that high on contract fuel. At one company I worked for, we had a high-volume RETAIL client. I think we offered them $1.80 off per gallon, and that was still better than what we would have made on a contract fuel sale. I think.
 
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