Charter Broker Set Up Advice
Good Afternoon Aviation Folk
I've worked in both commercial and private aviation for a few years now in many areas.
I am in the process of establishing a small charter brokerage on the side so i can make some extra money in order to save up for a house etc.
One thing I cannot get my head around or get any proper information from existing broker firms is how they invoice their clients.
The operator gives the broker a price of say £20,000 for a trip to Madrid.
The broker returns to their client and says it's £22,500 for the trip. - obviously the £2,500 is the brokers "arrangement fee" and the client understands that the broker isn't arranging it all for free. But how is the client presented the price/invoice? - is an invoice raised showing the operator fee of £20,000, and then the "arrangement fee" of £2,083.33 + 20% VAT = £2,500. OR does the broker simply raise and invoice showing £22,500 NET?
Thanks in advance for any assistance.