This is like paying full retail price. Retail price means you'll pay list price on new parts and list less 40% on Overhauled parts. In some cases, you might be able to negotiate a 10% discount on new parts. Shop labor, rework, and test cell fees are not discounted. Also, you don't have a third party to advocate your interests. So you have to rely on the shop's advice.
They've been waiting for this moment. These shops will either pocket their volume discounts, or mark them up above retail cost. The more your engine costs, the more they make so they may be more motivated to fight for the overhaul shop than you.
Oh, and if you try to contact the overhaul shop after the FBO has, they'll quote you higher so they don't compete with the FBO.
You'll pay less than retail price, but still more than you need to. Overhaul management typically costs $5-10k up front and then 10% of your savings. They might receive some type of extended discount that the manager may or may not pass along to you. Also, some overhaul managers may receive a year end volume incentive from the overhaul shops that they retain for themselves on top of what you pay them.
On the high end, Overhaul managers might do 60 overhauls per year (still much less than us).
This is the cheapest option without compromising on quality. Here's what we have that all three of the options above are lacking:
1.We Supply Parts - The vast majority of an overhaul cost is parts. When you overhaul with us, you'll be paying the lowest price possible for new, overhauled, or PMA parts. Most of what we supply is in-stock and ready to go.
2.Massive Discounts - Access to the highest volume discounts possible on labor and new parts pricing on Pratt & Whitney engines (based on 100-150 engines/yr).
3.Free Overhaul Management - We provide the overhaul management for free and only earn money by providing parts into the engine event.
Savings varies by engine model. But here's an example: An overhaul that typically costs $290k, we can typically reduce cost to $250 - 275k. We can do HSI's with similar savings. We use both DOF (OEM Approved) and Independent shops depending on your preference.