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Why Is Tipping Everywhere You Checkout?

maxinomics.com

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Re: Why Is Tipping Everywhere You Checkout?

#91
Individual experiences considered, the historical and contemporary experience of tipping brings problems on issues of both gender and race. Here is one well referenced article on the matter. https://onlabor.org/the-tipped-subminimum-wage-has-sexist-an...

When employers attempt to shave labor costs by putting out a tip jar, the burden of that decision is not felt evenly across the staff.

Re: Why Is Tipping Everywhere You Checkout?

#92

Earlier quoted context omitted.

Of the dozens and dozens of times I've smiled and happily tapped 0% or No Tip, I've never had the cashier say a thing. I did four years of minimum wage work at McDonalds. The only time I can remember getting tipped was when I jumped out the window after a $50 the guy had dropped. He let me keep the $10 change. If people running a drive-thru for 12h without a break don't deserve tips, I don't see why the people pourin…

Exactly. Nothing makes sense in the end when you think about it.

Paying the number a seller asks you to pay and you agree to pay makes sense.

Re: Why Is Tipping Everywhere You Checkout?

#93
Meanwhile in Italy, you will pay typically €1 for an espresso and €1.50 for a cappuccino. No option to tip. And the drink is ready 10 seconds after the 30 seconds that it takes the machine to extract after you order. No latte art and no waiting 5 minutes after you order only to realize they completely forgot to start making your drink _after you've already tipped them_. Back here in the States you will pay more than $1 in tip alone on top of a $4.50 cappuccino.

Re: Why Is Tipping Everywhere You Checkout?

#94

Some (many?) countries have demonstrated that no-tipping can work just fine. > makes them less competitive to any nearby coffeeshops that haven't raised prices Maybe I'm an outlier but for me I'm sick of the mental game of "Am I good member of society for the % I selected, and how much will my date judge me if I choose what used to be the norm -- 10%-15%... and am I the sucker if I choose a high amount while other pe…

I agree with your sentiment on tipping - I feel the same way. However I think the article did a pretty good job at answering your question of Why cant we just give employees dignity and a fair wage? . It's for economic reasons. To make it work you'd have to collude on pricing with all the other coffee shops (which I think would be illegal but IANAL), or you'd have to use government force to ban tipping (which would w…

>the status quo of expecting 20+% tip on an already expensive product is not good.

Eliminate the expectation of a 20% tip and prices will basically go up 20% to cover an increase in base pay for the staff. So consumers probably won't actually save money if tipping were eliminated.

Re: Why Is Tipping Everywhere You Checkout?

#95

> Deadweight loss happens when a person who is willing to pay more is charged less than the amount they're willing to pay That's not what a dead weight loss is. DWL happens when transactions don't happen for some reason (like price controls) and people who would have benefitted from the transaction at the market price can't do so What the author describes is instead a situation where the consumer keeps the surplus, r…

Right, what the author describes is a reduction in consumer surplus.

Re: Why Is Tipping Everywhere You Checkout?

#96
> Maybe it just feels more awkward to non-tippers

And that's the catch.

If I go to a coffee shop and get asked to tip I'm less likely to use that coffee shop in the future. The less coffee shops pay, the more they will need to push tips (or the more the staff will do it anyway) and the more obnoxious the tipping prompts.

Now I'm from a country that doesn't really do tipping, certainly not at any real volume in coffee shops, and I understand that pricing is a strong market force, but I think there's an unrecognised cost in goodwill to asking for tips.

Given the focus on employee wellbeing that we've seen over the last couple of years, I think there's absolutely room in the market for companies that charge more, treat their employees well, and don't push tipping.

Re: Why Is Tipping Everywhere You Checkout?

#97
I find it ironic he is using coffee shop competition to prove his point, when in reality Starbucks did just that - charged higher prices, removed the tip jar, paid employees fairer and with health benefits....the crushed the competition to near oblivion.

Asserting that we need to trick each other to have a fair economy of services is ridiculous.

Re: Why Is Tipping Everywhere You Checkout?

#99
post #60

Earlier quoted context omitted.

I also hate tipping everywhere, but coffee shops might also like to adjust their prices slightly for customers that don’t mind paying a bit more for well paid staff and for those customers to whom price is a major concern when choosing where to purchase their coffee. Dynamic pricing makes some sense in the concept of trying to capture maximum demand, it just feels horrible as a customer.

we are not machines, if i'm paying more (or even less) than the person in front of me at the line: 1- I'll make a scene 2- I'll never come back 3- It is probably a discrimination lawsuit waiting to happen

I mean, this is what is happening with the dynamic tipping system and none of these things appear to be happening.

Re: Why Is Tipping Everywhere You Checkout?

#100

Earlier quoted context omitted.

I think it's a US thing. I came from Bolivia and never once tipped anywhere outside of restaurants. No, I won't tip you for packaging 4 cookies in a box at Crumbl Cookies lol.

The intent is not to reward a task. It's a nod of appreciation that there is even an employee that's willing to show up to work and service you. You give them a dollar. At least that's how I look at it. I'm not a fan either just articulating my attitude towards it.

When I see a construction crew fixing the road, I stop and shove a dollar in each of their pockets, and then I continue on my way.

Luckily, my employer’s clients also give me a few dollars each time I see them, so I do not have to to the bank that often to get change.

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