Newbie Question - Brokers

[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?

[dktc]

We have 10% (or was that 15%?) off for brokerage requests.

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

[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?

[dktc]

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?

The brokers pay 90 or 85% of the list price of the plane. I think it is 85%, but I don't remember ( ). 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....

[Jps]

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

[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?*


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

[Hampo]

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

[dktc]

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?*


*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.

[Armygrognard]

We have 10% (or was that 15%?) off for brokerage requests.

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

Stop being so defensive.

[dktc]

Stop being so defensive.

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

[Seattle]

Stop being so defensive.

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

 

[Jps]

Stop being so defensive.

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

defensive.