Broker question! why?

[alvarez16]

Why would anybody use a broker to buy a plane?

I already read the game manual and the part on brokers but I'm still confused.

For example, if I want to buy a plane why would I pay a broker a 5% markup or even a 0% markup to get the plane if I can just get it myself? Is the only benefit the fact that you have 3 days to pay?

also, what happens when I pick up a broker request for someone at lets say 5% markup? Why would I spend my money to get someone else a plane when all I could be making is $500,000 on a $10 mil plane?

Thanks

[Gaius]

Yeah I'm in the same boat as you are. My suggestion would be just don't do it unless you dont have the money but you will have the money when the plane is due then the broker can be helpful since you don't have to save then pay then wait for the plane.

If you look in the broker thread in this forum, you can see in some specific worlds brokers are offering a -% on orders that are less than X amount, and those brokers I use often since they offer the aircraft at a significant LOWER price than the factory, especially if you order 2 or more at the same time.

The broker I use is Skylite Airlines in W4, and he offers a -10% and he actually saves me 40% off on orders, and I would call that significant. So again, its all about the brokers you choose.

[AirHanoverInternational]

Why would anybody use a broker to buy a plane?

I already read the game manual and the part on brokers but I'm still confused.

For example, if I want to buy a plane why would I pay a broker a 5% markup or even a 0% markup to get the plane if I can just get it myself? Is the only benefit the fact that you have 3 days to pay?

also, what happens when I pick up a broker request for someone at lets say 5% markup? Why would I spend my money to get someone else a plane when all I could be making is $500,000 on a $10 mil plane?

Thanks

If you request an aircraft from a broker you pay 30% (or was it 35%   ) in advance. The rest upon delivery. If you buy it on a regular way you have to pay 100% in advance. So you could request 3 aircrafts for the same cash than you need for 1 plane buying from the manufacturer. Ok, you'll have to pay a rest upon delivery as said. But if you order smaller planes you'll have 3 aircrafts after 24hours instead of one.

If you ACCEPT a broker deal you'll have the 5% in the end as you mentioned. But if the person that requested the aircraft does not pick up the plane on time you can retract it from the market and use it one your own. Best thing on this: you only paid 65% (IIRC) of that deal.  :wink:

Some things to keep in mind:

If you place a request don't expect it will be taken within 5 minutes. If it is a bad deal (especially on an early stage of the game) the broker will not accept it and go for the better deals instead.

Only official brokers can offer a negative markup like the -10% mentioned above.

[zkvac]

Why would anybody use a broker to buy a plane?

For example, if I want to buy a plane why would I pay a broker a 5% markup or even a 0% markup to get the plane if I can just get it myself? Is the only benefit the fact that you have 3 days to pay?

Because with official brokers (such as Skylite), you pay -10%, so you only pay 90% of what you otherwise would. Anything to save a bit of money

also, what happens when I pick up a broker request for someone at lets say 5% markup? Why would I spend my money to get someone else a plane when all I could be making is $500,000 on a $10 mil plane?

If you have the cash to burn, it's an easy €500,000. It's money for nothing! It gets better later on when people order 5x 737-500 @5%.

[Fleur-de-Lis]

Funny how no one ever mentions the devaluation of the airline, when going through the brokerage process...

[alvarez16]

Funny how no one ever mentions the devaluation of the airline, when going through the brokerage process...

What do you mean?

Thanks

[Cheung Airlines]

After you buy a brokered plane, your airline value will be deduced and your ranking will lag behind if you broker a lot.

[Gaius]

After you buy a brokered plane, your airline value will be deduced and your ranking will lag behind if you broker a lot.

Hmm quite interesting,

After I recieved my brokered plane, my value shot up more than 200 million. For me, its when you're waiting for the plane, the value kinds of stagnates or declines a bit, but when you recieve it my value goes up.

[dktc]

You place a brokerage request = 35% downpayment out, nothing in return. So your airline value decrease by the amount of the downpayment.

You pay the last sum of 65% + mark up, you get 100% plus mark up back as book value of the plane. So you gain the amount of downpayment.

Overall, your value is the same.



As for the orignial question, look up something called tim-value-money concept in accounting / investing.

[jameswyhk]

I never use the brokerage system.

[Cheung Airlines]

Me tooooooo.
I only scrap planes that Im sure no one will buy.

[jameswyhk]

Me tooooooo.
I only scrap planes that Im sure no one will buy.

Should be "EITHER"

[Cheung Airlines]

Again, * Sticking my tongue out and teasing myself  :oops:  *

And Again, 'Afterall, I'm NOT good at English. (100 / 150 at school)  '

Also, 'Any English Teacher in this game?'

Need to take lessons after school (or work)

^^^^
Freshly copied from Yahoo dict. :oops:

[Gaius]

Ok I have a question for you all...

Heres a example I chose to use,

Aircraft                             Engines                                Qty           List Price       Downpayment         Total Cost (Including Markup)
Boeing 737-300          CFM International CFM563B1          5           €58,365,928          €91,926,337            €262,646,676

You will be charged a total of €170,720,339 for this order. Each aircraft will take a total of 48 days to construct and deliver upon acceptance. This will only be listed for 6 months, before it is automatically cancelled and the deposit is returned.



So what I gather from this, the total cost going to the borker is 262.6k rather than 290.0k from the factory

But the part that puzzles me is that does the total cost include the downpayment?

As well as the "You will be charged 170k for this order" So does this really mean I'm really paying 431k all total? If so then why would I use the broker if the factory is a lot cheaper?

Hope anyone can clairfy for me. Thanks.

[dktc]

The total costs include the downpayment.