Net rates and commission

A net rate is the price you, the supplier, receive for a hire after the selling channel takes its cut. Channels pay suppliers in one of two ways: commission off a sell price, or a net rate the channel marks up.

The two models

Commission. You set the sell price. The channel keeps a percentage.

Your net = sell price × (1 − commission rate)

Net rate. You set the net. The channel adds its own margin on top and decides the sell price.

Sell price = net rate × (1 + channel markup)

Worked example

Hypothetical. You want to receive NZ$100 a day net on a compact.

• On a 20% commission deal, the sell price must be 100 ÷ 0.80 = NZ$125.
• On a net-rate deal where the channel marks up 25%, customers see 100 × 1.25 = NZ$125.

Same customer price here. The difference is control. Under commission you set the price customers see. Under net rates the channel does, so two brokers can show your car at different prices.

A common slip: grossing up by adding 20% to NZ$100 gives NZ$120, and 20% commission off that leaves NZ$96. Divide, don't multiply.

Why it matters for a rental operator

Your revenue per day should be measured on net, not sell price. A channel mix that shifts from direct to broker can cut RPD with no change to your rate sheet.

Know the model for each contract before you compare channels.

See it in Rate Pulse

Rate Pulse shows advertised sell prices from public broker search results, not anyone's net. When you benchmark, compare against your own sell price on that broker, not your net. Start at Rate Pulse.