Secret commissions
Posted: Fri May 03, 2019 11:31 am
In Cambodia, some guest houses and hotels have arrangements with tuk tuk and minivan drivers, so when they bring customers they get paid a commission. This does not normally affect travellers. However, there may be a situation where you go to a place you have never been before, a tuk tuk driver takes you to a guest house which is not very good. You want to go and see some of the others, but they refuse to take you, because they brought you to a place where they get a commission. Even ordinary Cambodian people sometimes get paid a commission for taking you to some guest houses or hotels. You ask them where to find a good guest house, and they insist on going with you.
In some situations, the restaurants where buses stop when travelling to other towns, pay the bus company for the buses to stop there. In other situations, they give the driver a good meal free.
You rent an apartment, where you pay for water and electricity. They owner makes a profit on the water and electricity.
If you send a Cambodian to go and buy something for you, particularly if it is expensive, in many cases the price will be higher, and they get their commission. You can even get a receipt, for the amount you pay while they get their commission.
Some foreigners go to buy something and pay for it themself. They may take a Cambodian with them to translate, or even just go with a friend. Cambodians have an understanding that that person took you to the shop, so they get a commission, even when you pay for it yourself.
When purchasing real estate, there are no laws about how much commission they can charge. I know of one sale where the seller received $7,000 and the purchaser paid $17,000. $10,000 was commission. Most went to the agent, but some went to the person who introduced the purchaser to the agent.
The same thing happens when foreigners decide to build something. Lets say they build a house for their Cambodian wife and family. In many cases someone like the wife's brother gets a commission on the cement, the bricks, the windows, the roof, etc. etc. There are some genuine wives, who may not do this to their husband, but there are many others who are secretly on the take.
I know of a couple of Cambodians who were associates of foreigners buying land and building on it. The Cambodian associates received commission on the land, and commission on each part of construction. The foreigners eventually found out what was happening, after the Cambodians became millionaires.
If you think of any other situation where money is involved, the same thing can happen. For example, you ask a Cambodian staff member to book a bus for a group tour. They get their commission.
You will notice with Cambodian businesses, the family controls the money. The staff may help out customers, but take the money directly to the family. Cambodians dont trust their staff with money. There are exceptions, such as supermarkets, where they have security cameras installed, and the money has to be correct at the end of the shift.
In some situations, the restaurants where buses stop when travelling to other towns, pay the bus company for the buses to stop there. In other situations, they give the driver a good meal free.
You rent an apartment, where you pay for water and electricity. They owner makes a profit on the water and electricity.
If you send a Cambodian to go and buy something for you, particularly if it is expensive, in many cases the price will be higher, and they get their commission. You can even get a receipt, for the amount you pay while they get their commission.
Some foreigners go to buy something and pay for it themself. They may take a Cambodian with them to translate, or even just go with a friend. Cambodians have an understanding that that person took you to the shop, so they get a commission, even when you pay for it yourself.
When purchasing real estate, there are no laws about how much commission they can charge. I know of one sale where the seller received $7,000 and the purchaser paid $17,000. $10,000 was commission. Most went to the agent, but some went to the person who introduced the purchaser to the agent.
The same thing happens when foreigners decide to build something. Lets say they build a house for their Cambodian wife and family. In many cases someone like the wife's brother gets a commission on the cement, the bricks, the windows, the roof, etc. etc. There are some genuine wives, who may not do this to their husband, but there are many others who are secretly on the take.
I know of a couple of Cambodians who were associates of foreigners buying land and building on it. The Cambodian associates received commission on the land, and commission on each part of construction. The foreigners eventually found out what was happening, after the Cambodians became millionaires.
If you think of any other situation where money is involved, the same thing can happen. For example, you ask a Cambodian staff member to book a bus for a group tour. They get their commission.
You will notice with Cambodian businesses, the family controls the money. The staff may help out customers, but take the money directly to the family. Cambodians dont trust their staff with money. There are exceptions, such as supermarkets, where they have security cameras installed, and the money has to be correct at the end of the shift.
