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- Glossary
- Net/Net
Net/Net
Net/Net is also known as a wholesale quote. The quote does not include taxes or fees. In the world of aviation, the term net typically refers to the total cost of goods, such as, a Hawker 1000 aircraft. The first net correlates with net worth while the second net refers to net use.
Crunching the Numbers
Usually wholesale rates are given to loyal customers that provide repeat business. When determining the wholesale rate for an item, the net worth is compared to the net use. In this equation, the net worth would be the aircraft in question. In this example, let’s use a Hawker 1000 as the possession being inquired about. The total net worth is determined by how much the aircraft was used. This is where net use is introduced into the equation. It’s calculated not only by how much flight time the aircraft incurred, but how much wear and tear was sustained as well. Another factor that must be taken into consideration is the aircraft’s worth on the wholesale market. To determine this, the Hawker would need to be compared to similar models with similar use. In some cases, purchasers may choose a brand new machine over a used jet. This is due to the cost of repairing older technology. Sometimes it’s more cost effective to go with a new model than fix an older one.
Net/Net is also known as a wholesale quote. The quote does not include taxes or fees. In the world of aviation, the term net typically refers to the total cost of goods, such as, a Hawker 1000 aircraft. The first net correlates with net worth while the second net refers to net use.
Crunching the Numbers
Usually wholesale rates are given to loyal customers that provide repeat business. When determining the wholesale rate for an item, the net worth is compared to the net use. In this equation, the net worth would be the aircraft in question. In this example, let’s use a Hawker 1000 as the possession being inquired about. The total net worth is determined by how much the aircraft was used. This is where net use is introduced into the equation. It’s calculated not only by how much flight time the aircraft incurred, but how much wear and tear was sustained as well. Another factor that must be taken into consideration is the aircraft’s worth on the wholesale market. To determine this, the Hawker would need to be compared to similar models with similar use. In some cases, purchasers may choose a brand new machine over a used jet. This is due to the cost of repairing older technology. Sometimes it’s more cost effective to go with a new model than fix an older one.
