Airline Mogul Forum

Airline Mogul => General Chat => Topic started by: Pacific on November 10, 2007, 04:03:57 am

Title: Newbie Question - Brokers
Post by: Pacific on November 10, 2007, 04:03:57 am
I'm curious as to how Official Brokers can manage to afford -3% discount, and up to -10% for their closest partners.

My understanding is, brokers get scrapped planes.  Scrapped planes on the whole tend to be rather cheap and obsolete and despite being able to sell to newbies, there is a supply glut of crap planes (and they automatically deduct cash from brokers when they arrive!) meaning low profit margins.

So...how does the huge discounts on new, expensive aircraft work?  What makes official brokers able to do this without running out of cash?
Title: Newbie Question - Brokers
Post by: dktc on November 10, 2007, 04:19:05 am
We have 10% (or was that 15%?) off for brokerage requests.

ok... now people will start targeting us and screaming unfair again :roll:
Title: Newbie Question - Brokers
Post by: Pacific on November 10, 2007, 04:19:55 am
I'm not saying it's unfair.  I'm just curious how it's actually economically viable!

Edit: So if I pay €50m to a broker for an aircraft, it costs the broker only €45m to purchase? :o
Title: Newbie Question - Brokers
Post by: dktc on November 10, 2007, 04:40:02 am
Quote from: "Pacific"
I'm not saying it's unfair.  I'm just curious how it's actually economically viable!

Edit: So if I pay €50m to a broker for an aircraft, it costs the broker only €45m to purchase? :o


The brokers pay 90 or 85% of the list price of the plane. I think it is 85%, but I don't remember ( :roll: ). So, basically you put in 35% deposit, we pay the other 50%. When the plane arrives, you pay the rest of 65% to us if markup=0%, 55% if markup=-10%.

Oh, and I said "people", not you. We just need to wait for several hours....
Title: Re: Newbie Question - Brokers
Post by: Jps on November 10, 2007, 05:56:19 am
Quote from: "Pacific"
I'm curious as to how Official Brokers can manage to afford -3% discount, and up to -10% for their closest partners.

My understanding is, brokers get scrapped planes.  Scrapped planes on the whole tend to be rather cheap and obsolete and despite being able to sell to newbies, there is a supply glut of crap planes (and they automatically deduct cash from brokers when they arrive!) meaning low profit margins.

So...how does the huge discounts on new, expensive aircraft work?  What makes official brokers able to do this without running out of cash?


Because... they get aircrafts for lower prices. Same with new and old aircrafts
Title: Newbie Question - Brokers
Post by: Pacific on November 10, 2007, 01:24:11 pm
Ahhh I get it now.

With €22 billion to play with, I was thinking of brokering for my alliance but seems I can't compete!  Would D Express be interested in becoming a partner?* :o


*I'm not the marketing director of the WAA and this isn't my job but well worth asking nonetheless!
Title: Newbie Question - Brokers
Post by: Hampo on November 10, 2007, 01:28:29 pm
If you put a request in at -5%, we get 10% profit of the overall sale :)

So if you put a €100mil order in at -5%, we will get €10mil profit :)

i think
Title: Newbie Question - Brokers
Post by: dktc on November 10, 2007, 01:47:52 pm
Quote from: "Pacific"
Ahhh I get it now.

With €22 billion to play with, I was thinking of brokering for my alliance but seems I can't compete!  Would D Express be interested in becoming a partner?* :o


*I'm not the marketing director of the WAA and this isn't my job but well worth asking nonetheless!


I am always interested but I would need more information to decide.
Title: Newbie Question - Brokers
Post by: Armygrognard on November 10, 2007, 09:17:04 pm
Quote from: "dktc"
We have 10% (or was that 15%?) off for brokerage requests.

ok... now people will start targeting us and screaming unfair again :roll:


Stop being so defensive.
Title: Newbie Question - Brokers
Post by: dktc on November 10, 2007, 09:23:11 pm
Quote from: "Armygrognard"
Stop being so defensive.


People were telling me I am too offensive, so which side you want me to be on? :P
Title: Newbie Question - Brokers
Post by: Seattle on November 10, 2007, 10:23:38 pm
Quote from: "dktc"
Quote from: "Armygrognard"
Stop being so defensive.


People were telling me I am too offensive, so which side you want me to be on? :P



 :lol:
Title: Newbie Question - Brokers
Post by: Jps on November 11, 2007, 05:08:03 am
Quote from: "dktc"
Quote from: "Armygrognard"
Stop being so defensive.


People were telling me I am too offensive, so which side you want me to be on? :P


defensive.