Live data from Hacker News

Why Is Tipping Everywhere You Checkout?

maxinomics.com

121–130 of 250 posts

Re: Why Is Tipping Everywhere You Checkout?

#121

> 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…

There's a particular French-inspired cafe near me that specifically doesn't accept tips - they don't even give you the option.

Their apparent prices are much higher than comparable places (something that's $12 across the street might be $15 here). And they are always packed. I love going to this place. It's the only place that doesn't demand extra time, thought, work, money, and sometimes a calculator from me in order for me to enjoy a cup of coffee and a crepe by the window.

On a totally different scale of spending, when my wife and I were choosing a resort for vacation, we specifically chose one that disallows - not discourages, but specifically disallows - tips. Because, for me, half of the point of a vacation is to spend a week not thinking about money, finances, budgeting, etc.

Given the choice between an expensive "tips not allowed" place and a nominally-cheaper-but-not-really "tips encouraged" place, I'll choose the more expensive option every time.

Re: Why Is Tipping Everywhere You Checkout?

#122
post #41

> Deadweight loss happens when a person who is willing to pay more is charged less than the amount they're willing to pay. > Tom is willing to pay $6 for coffee and the shop only charges him $4, the deadweight loss is $2. That is a consumer surplus, not deadweight loss.

Indeed. Some credibility has been lost as well, given the source of TFA.

Re: Why Is Tipping Everywhere You Checkout?

#123

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…

>Why cant we just give employees dignity and a fair wage?

Define dignity first, maybe? A slave in chains can still have dignity, and the most wealthy and powerful of men can be utterly undignified.

Re: Why Is Tipping Everywhere You Checkout?

#124

This is exactly how I think about tipping. I, and many friends and family, worked retail and food service jobs when we were young. Now I’m professionally successful and will not miss a couple extra bucks on a cup of coffee. So I’m happy to help boost the person serving it to me. I know it means way more to them than it does to me. This also explains why people (including me) get SO MAD if they find out that tips don’…

Me too. And I don't spend much time calculating either. Always round up, because you rarely get the opportunity to be a hero for $1.

Re: Why Is Tipping Everywhere You Checkout?

#125
post #69

Earlier quoted context omitted.

I used to work shipping & receiving, where I got minimum wage, and didn't get a tip for anything. That's why I'm happy to let people working retail & food service jobs just do the work for their wage. See how that works?

People working in restaurants in the US have a lower minimum wage than the rest of the country. So letting them do their work for like $3/hr doesnt really cut it

No, they do not. The employee is still owed the minimum wage, whether it be via tips or their employer if the tips do not add up to minimum wage.

Also, quite a few jurisdictions do not have tipped minimum wages anymore.

https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

Re: Why Is Tipping Everywhere You Checkout?

#126
post #94

Earlier quoted context omitted.

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.

You can see a comment below where a bartender is saying that they earn much more from tips than they would ever get paid with wages. This is a pretty common sentiment from waiters when a place says it's going to give up tipping. So that money is going to go somewhere. Some to the owners, some to the consumers, some to the people in the back. Probably also some to people who wait tables/bartend and make little (this seems to be a situation where people who know how to work the system make a lot while others stumble).

It would also remove a fairly large mental burden on consumers.

This is why I find it odd that people get mad when the occasional customer gives a low or no tip. That's the system, and you're saying you prefer this system because it overall makes you much more money than the alternative, at the cost to consumers and others.

Re: Why Is Tipping Everywhere You Checkout?

#127
post #67
post #54

Earlier quoted context omitted.

It seems different in the US, where everyone is expected to tip as part of the overall price, like the article describes, and there is tipping Europe where the tip is not needed to boost the wage to an acceptable level but is simply to reward people who have gone above and beyond. In many restaurants in the UK, a "tip" is automatically included for large parties to reward the extra work required but can be removed on…

I live in the US and I HATE tipping. Just multiply all the menu items by 1.15, 1.18, 1.20, or whatever you need to ensure your wait staff is happy, and re-print the menu. Don't make ME have to bust out a calculator and do math after my meal, and then have to decide which of the above numbers I should use.

I always tip 20, but I honestly hate doing it for many reasons.

I also hate separate sales tax. Just build it into the menu.

I just got back from Portugal. 99% of places took cards. When you are ready to pay the bill, they bring out the portable POS machine, you tap your card, and you're done. No awkward tipping screen. No separate calculation for sales tax. No pressure to buy bottled water or charging of table fee like in Italy.

What you see in the menu is what your final will be.

Eating out was cheap, fun, hassle free, and tasty.

Re: Why Is Tipping Everywhere You Checkout?

#128
post #54

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…

It seems different in the US, where everyone is expected to tip as part of the overall price, like the article describes, and there is tipping Europe where the tip is not needed to boost the wage to an acceptable level but is simply to reward people who have gone above and beyond. In many restaurants in the UK, a "tip" is automatically included for large parties to reward the extra work required but can be removed on…

>there is tipping Europe where the tip is not needed to boost the wage to an acceptable level

The internet gets the cause and effect on this backwards. Waitresses get paid 2 dollars an hour in much of the USA because they get tips. They don't get tips because they get 2 dollars an hour.

You could pay waiters 60 dollars an hour and Americans would keep tipping.

Re: Why Is Tipping Everywhere You Checkout?

#129
post #23

Earlier quoted context omitted.

If it's not 100% it's wage-theft

Really? I own a coffee shop and the employees don't always get 100%. For cash, yes its 100%. For CC they get around 97.8% (I pay 2.2% CC fees).

The CC fees should be paid by the product or service transaction. Maybe it's legal but it's not cool that you are basically charging your employees for the right to get a tip from a credit card transaction you are already processing.

Re: Why Is Tipping Everywhere You Checkout?

#130
post #69

Earlier quoted context omitted.

I used to work shipping & receiving, where I got minimum wage, and didn't get a tip for anything. That's why I'm happy to let people working retail & food service jobs just do the work for their wage. See how that works?

People working in restaurants in the US have a lower minimum wage than the rest of the country. So letting them do their work for like $3/hr doesnt really cut it

That seems like a problem worth addressing.
Post reply on HN