What suppliers and vendors should do

If you supply yachts, you will be asked for commission. It will be asked by brokers, crew, agents and managers, sometimes directly, sometimes as a polite "is there a commission available?". It is awkward to refuse, and refusing can cost you business. This is what we recommend.

Why you should not pay

• It may be a crime, for you as well as for the person who takes it. In France, Italy, Spain and the UK, offering a hidden benefit is an offence in its own right, whether or not the order is placed. See the law pages.
• It puts you in someone's pocket. A person who has taken one payment has a hold over you, and the reverse.
• It is a race you cannot win. Someone will always pay more.
• It destroys what you are selling, which is the client's trust in your recommendation.

What you can do

• Offer a real discount, visible to the client. A volume discount on the invoice is a price, not a bribe. The client sees it and benefits from it.
• Pay a disclosed commission to a firm, under a written agreement the client has approved. That is a different thing from a payment to a person that nobody knows about. If in doubt, ask a lawyer.
• Publish your pricing and your policy. Make "we do not pay commission" a clear, public statement.
• Say it kindly and consistently. Everyone gets the same answer.

A script for when you are asked

"Thanks for asking. We don't pay commission or any benefit to anyone placing an order. It's our policy, and it's written down. What we can do is offer the client a discount on the invoice, which they'll see and keep."

Keep a note of each request: date, role, and reply. Records protect you, and they help others see what is going on. There is a template for your policy and a register you can adapt.

Why make the Vendor Promise

Honest suppliers lose business to dishonest ones because nobody can tell them apart. A public, written promise gives clients and brokers who care a way to tell. It is free to join while we start, and it is only worth anything if many of us sign. Make the promise.

General information, not legal advice. See the disclaimer.