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Last Update: Sunday December 17, 2017

Key Idea: Ignore The Word No

Refuse to take "NO" for an answer. This has been Reed's mantra. Most people who don't own their own business would look at him and say, "Why didn't you just go get a job?" 

Key Question:

A: 

Keep thinking of new ways to solve problems.

Q: What risk did Reed take when he decided to change his business?

A:
He invested in construction before he had permission to sell fuel.

Q:  What did the hard times teach Reed?

A: It was in the struggle for cash flow that Reed decided he would not cut his prices. Just when he needed more customers he held his prices higher than the competitors. This was gutsy. His decision paid off. The big insight he gained in the hard times was, "I have to be different."

Think about it

When did you refuse to give up and what did you learn from it? Were you are brave as Reed?
 

Clip from: Texas Jet

Fort Worth, Texas: There are no lines. No crowds. No delays. Just red carpet treatment all the way. And, it is not just for the wealthy anymore. Here at Meacham Field and in 5000 other small airports around the USA, small business owners service, sell, own, and use private jets. This is the other airport in town.

This is the story of Texas Jet which is FBO, Fixed-Base Operation; they provide all the ground-based services required by aircraft owners and operators. The term, FBO, originated back after World War I to describe the first aviation businesses that developed a permanent base of operations to deliver services at airports. That name stuck. Here we open the door of private jets, charters, fractionals, and empty legs. With the help of the Internet bookings, you could easily be taking a little jet rather than drive your car.

Founder Reed Pigman says the pilots are his core customer base;  and, for many years now, these pilots voted Texas Jet to be one of the Top Ten Independent FBO's in the United States. So, out of 5,000 choices, pilots say Reed and his team are among the best. There's more. As a distributor for Phillips 66 Jet Fuel, Reed also takes the lead. Texas Jet has been recognized by Phillips 66 as one of a hand-full of distinguished partners among some 600 distributors. 

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Texas Jet

Reed Pigman, President

200 Texas Way
Fort Worth, TX 76106
8007764547

Visit our web site: http://www.texasjet.com/

Office: 8007764547

Business Classification:
Transportation

Year Founded: 1978

Ignore The Word No

HATTIE: How did you keep dealing with the no's?

REED: I guess I'm very stubborn. I just don't like to take no for an answer. When the city told me initially that they wouldn't let me sell fuel, I said, `Well, I'm still going to build the facility, and I know eventually I'm going to be able to sell fuel.' I waited a year to be able to sell fuel. Cash flow was almost non-existent during that time. I had two big, empty hangars because nobody wanted to base their airplanes with me because they were afraid that the other people selling fuel would not come and sell them fuel if they were based in my hangars.

So I had virtually nothing. Then it opened up. I got to sell fuel.

And, slowly, I started building the business. But at the same time, interest rates hit 21 percent. I had these aircraft in my sales inventory that I couldn't get rid of because the values were dropping monthly. I was making these horrendous payments on the two buildings because those rates floated up to 21 percent, as well as the notes on the airplanes. And for a while there, I thought I was going to go out of business. And I'll tell you what, it was that time, I think, that made me a better business person than any other time in the world because my back was against the wall.

I said, `Hey, I've got to do something. I've got to collect money from anybody that owes me money. I've got to sell more fuel to bring more money in.'

And, also at that time, one of my competitors on the airport said, `Well, Reed'--he told me he had just made the last note payment on his hangars, and he was dropping his fuel price 20 cents a gallon. And, you know, I said, `Oh, my goodness, I can't drop my fuel price 20 cents a gallon. I'll go out of business.'

HATTIE: Right. Right.

REED: So I said, `The only thing I can do is try to give excellent service so that people that fly on this airport and fly into the airport are willing to come to me and pay 20 cents a gallon more for better service.'

HATTIE: All right. You went to bed at night thinking, `How do I do this? How do I do this? How do I do this?'

REED: Right.

HATTIE: So that's when all your creative juice started flowing and you said, `I have to be different.'
 

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