Interview with Bruce Miller
I first came across Bruce Miller when I started seriously networking on LinkedIn. He was connected to everyone that I was reaching out to and he had written a bunch of articles with tons of viewer traffic. I had the chance of meeting him in person at the 2017 ACPC in San Diego and immediately felt that he was going to teach me some valuable lessons through a friendship gained by the same business motivations we share. Bruce is a friend and mentor even though he can be a competitor as well. He has a wealth of knowledge and responds on LinkedIn pretty quick if you have a question for him.
How long have you worked in the aviation industry and what did you do in your first job?
"I’ve worked in aviation for over 21 years. I’m hooked. Not only do I have Skydrol in my blood, but I also breathe pneumatic fluid. My retirement plans involve a plain pine box.
See my LinkedIn article https://www.dhirubhai.net/pulse/20-years-going-strong-bruce-miller/ , which I posted in 2016.
My first aviation job was at Hubair, an excellent parts broker that has unfortunately since closed. Hubair’s training system was an outstanding education in the aviation industry. They preferred to hire people with zero prior aviation experience, “so that we won’t have to break you of your bad habits.”
Hubair would agree interview anyone with a college degree; when they got 50 interview appointments they cut it off for a while. In the face-to-face interview they did some role-play, and while acting as a vendor they gave you a hard time. When the interviewee finally said, “Let me talk to your boss,” the interview was over – you were hired! Only 3 of 50 people did that much, including myself.
But that was just the beginning. Over the next two weeks the new hires had to undergo rigorous testing of their memory….and prove their desire to succeed.
The very first subject was learning the “Evil Core” list of companies and of specific people that you were trained to hate. The companies (several of whom I have since found to be decent players) included…what, you think I’m going to name names? I’m not trying to get sued here. The individual people were people who were jailed for violating aviation laws. As a side note, whenever you hear of someone who has been invited to reside in the crossbar hotel, make a point of putting him/her in your address book. Make sure that you save this information, because they may return to the addictive aviation business (it can be more profitable than narcotics), and when they pop up you need to know who to avoid.
Other subjects that the Hubair rookies had to learn were the aviation alphabet, part number configurations, aircraft OEMs, rotable OEMs, how to write a sales quote (incoming and outgoing), understanding exchanges, trace documents, QC requirements, rotables VS expendables VS consumables, reading an 8130, the meaning of FAA-121, -129 -135, -145, foreign carriers (non-129), how to work the company’s aviation software, etc. One also had to learn how to use a microfilm reader and become fluent in the Illustrated Parts Catalogue.
Each day during Hubair’s training period had a new test….and ONE mistake meant that you were let go for being inadequate. There were days when all three new hires sadly packed their belongings and slinked away from the building. The attrition rate of the new hires was over 90%, but the people that survived were good. They should be, as the company sifted through over 200 college-educated people to find each winner.
My fellow Hubair alums can today be found doing well at AerSale, Airmark Components, Arrow Dynamics, Broward Aviation, Avocet Aviation, Comenza Asset Management, Commercial Jet, DASI - Diversified Aero Serivces, GA Telesis, Legion Aero, Regional One, Reliance Aircraft, VAS Aero – and more, I’m sure. A Hubair employee with five months of experience was in many ways more adept than most others possessing five years’ experience."
What do you think about start-ups and independent consultants working in the aviation industry?
"Surviving as a true-independent, a one-man-shop, is more difficult than ever today. Few people can make a living at it. My hat is off to those that have beat the odds and can stand on their own.
If you want to start up from the ground, your chances of success will grow when you have financial partners to back you up, and when you have business partners that can complement each other’s strengths and weaknesses.
Beware of having one customer account for a huge portion of your revenue. Your favorite buyer may retire or get reassigned, leaving you out in the cold.
Another hurdle is being able to afford basic aviation software. I’ve used a lot of them, and most of them leave a lot to be desired. A good program is very expensive, but a cheap program will cost you far more in the long run when you are forced to ditch it and buy the one that you should have had in the first place.
Especially in FAA-145 repair stations, the price of admission is formidable. In addition to a substantial capital investment into equipment you have the FAA putting your every move under a microscope. That slows you down at a time when you need to start generating revenue as fast as possible."
Have you ever had a broker or MRO customer become a competitor by asking for a quote and undercutting your price to the end user? If so, how did you or do you handle these situations?
"Of course. It happens – but that doesn’t mean that I have to like it. Upon finding out that I’ve been used I have sometimes sent a quick email to let the person know that I caught on to them – and never has anyone apologized.
These people are not my close friends, and I do keep a scorecard. I make “caution” entry into my Outlook address book, with dates and notes.
During a phone conversation I slow down and control the call to proceed at my pace. I take the time to consult my address book, and if I see that someone has burned me that way once, it won’t happen twice. Burn me once, shame on you. Burn me twice and you will get bad market information from me.
However, if you frankly tell me up front that you just need a bit of market information, I’ll usually be happy to help you out. It is important to realize that anyone can be your customer in the morning, your competitor in the afternoon, and your supplier in the evening. It pays to be nice, it pays to be honest – in this business and in every other."
Do you see the aftermarket growing independently or becoming monopolized by a few larger companies buying out smaller repair stations and brokerage firms?
"I don’t know. I will say that it is harder than ever before to work with – not against – the OEM. OEMs have made the discovery that there is good money to be made in the aftermarket supply of used parts and of repair services. So OEMs have taken steps to discourage independent competition by restricting access to pricing, technical data, or even the courtesy of a return email. I like to say that I have a Love/Hate relationship with OEMs: I love them, and they hate me.
But there is still a place for the little guy. Independents are more agile, price sensitive, and have far better customer service. Airlines appreciate this, and there are plenty of them who eschew the prevalence of Power By The Hour contracts.
Investment Bankers see companies in the aviation sector as attractive takeover targets. There are plenty of shops that have grown, matured, and then have the owners sell out to take a comfortable retirement. Funny thing, though, many of the small companies do not thrive under the big corporate umbrella. Employees who suddenly find themselves working in a big corporation often chafe at the new rules and bureaucracy. “They’ve gone all corporate,” is a complaint I have heard several times. Investment firms buy a prosperous company and then try to fit into their own mold. This is not always successful. True Story: A friend of mine, had dedicated over 20 years to his company when it was sold. He suddenly needed two levels of permission to visit a client across town; he couldn’t go to a nearby trade show, not even to walk the aisles. He was being suffocated by the suits. Well, he did NOT need permission to quit and move to a friendlier environment, taking millions of dollars of repair business with him."
And so this concludes my interview with Bruce Miller. He is an expert in his field and has a great radio voice with some history there as well. He is always fun to talk to and to bounce ideas off of. He is living proof that competitors can get along together and that is a big deal to me. I hope you enjoyed the interview as much as I did. Until next time.....
Respectfully,
Dylan Larson