Also known as a wholesale quote it describes the format that applies to wholesale rates. It does not include taxes or other end-user assessed fees. Net can refer to a number of things in the financial world but when talking about private jet charters Net can often refer to the total cost of the goods. Wholesale rates are most often given to preferred customers. In order to determine the wholesale rate for a product you must take the Net Worth and compare it to the Net Use. The Net worth would be the total worth of the good, such as a charter jet. It total worth would be determined by how much the charter jet was used. This is where Net Use comes into play. The Net use on the jet is not only how much the jet has been flown but how much damage and wear and tear is has incurred.
When comparing the Net Use and Net worth a wholesaler must also take into account how much the jet will be worth on the wholesale market. This is determined by comparing it to other aircraft that are similar and have similar use.
Net/Net not only describes a format but it also give the charter jet industry a foundation to work with then determining their prices for customers. A company not looking to sell its aircraft and just rent them out for charters might what to know what the wholesale rate is for a particular flight. They would determine this rate by comparing the net travel of that route with the net cost to fly that route as well as with the net income the charter jet company would gain buy flying that route. Charter jet companies use.
However, most often Net/Net will refer to the resale of a charter jet. In this case a wholesale rate would be given to the potential buyer not including taxes or end-of-user fees. Since the aircraft have been used and is now up for resale it is the interest of the seller to make sure a deal is made. This is why wholesale items tend to be cheaper then even used retail items. Charter jet customers then to think a resold jet is not as dependable as a new one and this lowers the price. If the jet cannot be sold in the retail market it would be sent to a wholesaler where a wholesale quote would be created and given to buyers. Anther factor lowering the net worth of a charter jet causing it to be wholesaled is the constantly increasing production of new better technologies. It some cases it is cheaper to go out and buy a bran new charter jet then it is to rebuilt an old one so wholesalers will lower the net price of the charter jet and try to make a sale. This does not mean the jet is not good. It just means that the jet is not worth as much as a bran new one, which anyone who’s bought a car can surly understand.