Looking for some insight...

Hello All:

Am doing a work up of the profitability (or not) of the glider manufacturing and sales businesses.

Among the unknowns a

1) What do we believe the profit margins are on the sale of a glider by the manufacturer? For instance, an ASG-29?

2) What do we believe the various reps/agents are able to take home in sales commission, etc.

The answers to these questions seem to be very tightly held and I wondered if any of our esteemed ras'rs might provide some idea of ballpark figures or hard numbers on these questions.

Thanks,
Al Batross

2) What do we believe the various reps/agents are able to take home in sales commission, etc.


For what its worth, I've heard 3-4% from the "majors" (SH & Schleicher) from sources I believe.

I also believe the agents make very little on new sales, their reward comes in repair work and margin on spares sales.

On Thursday, March 6, 2014 3:18:10 PM UTC-5, wrote:
Hello All: Am doing a work up of the profitability (or not) of the glider manufacturing and sales businesses. Among the unknowns a 1) What do we believe the profit margins are on the sale of a glider by the manufacturer? For instance, an ASG-29? 2) What do we believe the various reps/agents are able to take home in sales commission, etc. The answers to these questions seem to be very tightly held and I wondered if any of our esteemed ras'rs might provide some idea of ballpark figures or hard numbers on these questions. Thanks, Al Batross

Sales commissions are low enough to be "noise" in the calculation. Certainly minimal compared to considerations like the one time costs to design, production tool, and certify a new glider.
Also definitely less than the variability of material costs that change with volume.
FWIW
UH