"Steve Cohen at SAC was famous for overpaying on commissions "
After a real estate deal last year I bought the broker a gift and delivered it. He said "wow shouldn't I be buying you the gift?". No problem because the next time I was the person he called first when he got a fresh listing on a commercial investment property which I was able to buy at a much lower price per sf than if he had actually taken the effort to shop it around or keep the listing active. People respond amazing predictably even if they think of themselves as highly ethical. They tend to remember the people who treat them well and appreciate their efforts.
In this context a small gift (what I am describing) also isn't necessarily a bribe. It is an "advertisement" that makes the person that you are giving the gift to remember you and to call you when they have "a good deal".
It all depends on the relationship. It is often the case in business that instead of thinking solely about the costs (or commissions) that it definitely pays to be someone's good customer and allow them to make money from you.
After a real estate deal last year I bought the broker a gift and delivered it. He said "wow shouldn't I be buying you the gift?". No problem because the next time I was the person he called first when he got a fresh listing on a commercial investment property which I was able to buy at a much lower price per sf than if he had actually taken the effort to shop it around or keep the listing active. People respond amazing predictably even if they think of themselves as highly ethical. They tend to remember the people who treat them well and appreciate their efforts.
In this context a small gift (what I am describing) also isn't necessarily a bribe. It is an "advertisement" that makes the person that you are giving the gift to remember you and to call you when they have "a good deal".
It all depends on the relationship. It is often the case in business that instead of thinking solely about the costs (or commissions) that it definitely pays to be someone's good customer and allow them to make money from you.