Originally Posted by
SouthernBroker
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.
If you’ve had to ask this question because you honestly don’t know the answer you shouldn’t be considering getting into the totally saturated market of broking. Secondly if you think you’re going to be able to earn over 10% on a job think again, those days are long gone!