Hello to the interior designer,
A big Yashar koach for the question.
We are obligated to deal with money in the most proper and integral fashion, and this is the foundation of yirat shamayim and following the ways of God.
This is a very famous ethics question and has been asked numerous times to different rabbis.
The best thing to do is to follow the path of this halacha:
“When a person buys and sells in good faith, the laws of overcharging (ona’ah) do not apply. How so? [the seller tells the purchaser:] I purchased this item for such and such and I am making this and this amount of profit,” the laws of ona’ah do not apply” (Mishneh Torah, Hilchot Mechira 13:5)
Granted, this halacha deals with overcharging, but it is very very close to the topic we are dealing with. The best thing to have is transparency with the clients, and to genuinely say to them that you work with a certain distributor, receive a fee like everyone (and even people who do not say so – receive fees), and this is recommended for all sides: telling the client that since the distributor is someone you work with regularly, they should act with proper conduct towards you and them.
I have all the reasons to estimate that it will not impact you negatively if you tell the clients beforehand that it is very much acceptable practice in business that when you work with a certain distribution professional who requires compensation, emphasizing that it is permitted for them to choose a different wholesaler, etc. From working for many years in the field I have learned that price comparisons will educate them that the compensation is not impacting them, because it is not necessarily rolled over to their account, rather it is a payment to the wholesaler that one should pay in order to have more clientele.
This is the best case scenario.
And if you can act in this manner – this is the most recommended and just path.
And if you decide not to go down this path – it seems that it is practically permitted without revealing this.
Why? Because of the fact that this is truly how the market runs for everyone, in many professions.
And therefore, even if you choose not to tell them anything – you are permitted to receive compensation from the distributor. The reason for this comes both from the fact that it isn’t advisable for the distributor to roll over the price onto them, for they can compare it to others and not choose to work with them, and beyond this – it is truly worth it to charge them a fee from his profit because it encourages you to use them regularly.
However,
This matter places a great ethical and halachic responsibility on you – to prioritize the wellbeing of the client over your own and withstand the trial.
As stated: you are obligated to ensure that if it is better for the client to choose another wholesaler – you should tell them this explicitly and recommend that they compare prices.
For if not, it is very close to “cursed is the one who turns the work of God into deceit” and acting under false pretenses.
All the best and Yashar koach,
Rabbi Yuval Cherlow
Head of the Tzohar Ethics Center
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