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Companies use drip pricing to overcharge consumers

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Re: Companies use drip pricing to overcharge consumers

#21

Post by civilized »

mox1 wrote: post #15
civilized wrote: post #8

I will sometimes succumb to drip pricing for the reasons given (already received service, already done research and made purchase choice, etc) but I remember and avoid giving them repeat business. I don't have time for scammers. Best remedy is to cut them out of my life.

Unfortunately you are in the minority, in general these hidden or drip fees increase revenue[1]. 1. https://therooster.com/articles/stubhub-experiment-shows-tha...

Doesn't seem to address the long-term impact. Only shows that people will pay what is asked in the moment, which I don't dispute.

Re: Companies use drip pricing to overcharge consumers

#22

Post by MDWolinski »

The concept of tipping is for "tipped" positions in restaurants. Someone in a Tipped position earns far less then minimum wage, which is made up by customer Tips.

So this leads into my frustration with the proliferation of tipping, which seems to have started at Starbucks (edit: at least that's where I first saw it occurring for counter services), is someone working at Starbucks making tipped wages or at/above minimum. If it's the latter, then they shouldn't be tipped except in extraordinary customer service situations.

It would be interesting to see how tips in restaurants that have drip pricing have changed since the implementation of them.

All that being said, I love in France (and I'm sure other parts of Europe) where there's a service charge added to each bill and that's it. I can leave some extra coins if I wanted to, but otherwise additional tips are expected. There, wait staff are paid a livable wage.

Re: Companies use drip pricing to overcharge consumers

#23

Post by dqv »

It would be nice to have bundle reform that requires all prices to be listed as taxes-and-fees-inclusive here in the US. Ok, it’s not going to happen federally, but I’d at least like it where I live.

Changing prices is already regular maintenance, so the idea that this would place a burden on businesses is BS. If they have metadata at the cash register to know how to tax different items, they can have it at the label printer too. And for ecommerce, it’s even easier.

As to the wellness fee, I would be way more receptive to the 20% increase being included in the menu prices with a note about what that 20% does.

Re: Companies use drip pricing to overcharge consumers

#25

Post by lotsofpulp »

MDWolinski wrote: post #22

The concept of tipping is for "tipped" positions in restaurants. Someone in a Tipped position earns far less then minimum wage, which is made up by customer Tips. So this leads into my frustration with the proliferation of tipping, which seems to have started at Starbucks (edit: at least that's where I first saw it occurring for counter services), is someone working at Starbucks making tipped wages or at/above minimu…

> which seems to have started at Starbucks (edit: at least that's where I first saw it occurring for counter services)

In my experience, it existed before in the form of tip jars (in NYC area), but really blew up when tablet point of sale systems like Clover came into the picture.

They earn a percent of the transaction, so adding a simple option to increase the amount of the transaction is a no brainer for increasing profits. And the act of actually having to press no tip is better at guilting people than simply being able to ignore a tip jar.

And then the point of sale providers got even more greedy and removed the no tip option, and started making it so users had to press “custom tip” in order to tip zero or otherwise increase the friction of not tipping.

Re: Companies use drip pricing to overcharge consumers

#26

Post by chamwislothe2nd »

tempestn wrote: post #16
jbirer wrote: post #14

Earlier quoted context omitted.

A little assertiveness can go a long way. "I was not made aware of this fee, so I am only paying X" and walking away should work.

You can only do that if paying cash. And if you do, what will effectively happen is that the money you intend to leave as tip will go toward the fee instead.

Unfortunately for everyone involved, the waiter is complicit in the fraud and no longer deserves a tip.

Re: Companies use drip pricing to overcharge consumers

#28

Post by jasode »

A reddit thread made the front page with a similar example of surprise "Economic Recovery Fee" added onto the restaurant bill:

https://old.reddit.com/r/mildlyinfuriating/comments/10gowkx/...

If a government watchdog like FTC doesn't stop this or a new explicit law that only allows "total final price" clearly displayed before purchase, it means every type of business will want to play the "Ticketmaster-convenience-fees" game by creatively coming up with new fees.

If businesses are trying to get more money, they should do it by transparently raising prices instead of tricking people into paying hidden fees.

Re: Companies use drip pricing to overcharge consumers

#29

Post by TuringNYC »

voakbasda wrote: post #20

Boost Mobile did this recently when my wife and I switched cell carriers. They advertised a $30/month/line plan (after a 3-month introductory period at an even lower price), but we are now paying closer to $45. This has pissed me off enough that I want to look for another carrier, but this seems to be SOP for this industry. Telcos behave like nothing less than a criminal cartel, so I was hardly surprised by this play…

My favorite is when wireless carriers can charge a "Regulatory Recovery Fee", which is basically part of the price, but can magically change and magically appear on your bill. The fact that the FTC is fussed about free chat apps rather than wireless carrier practices in the US is obscene.

Re: Companies use drip pricing to overcharge consumers

#30

Post by avitous »

Just say no. If the added fees are known up front, take business elsewhere. If they're only revealed after the fact, I would become That Ugly Customer, and they would never get my business again. If enough do this, then behaviors will change, especially if such businesses are retaliated against. As they should be.
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