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Companies use drip pricing to overcharge consumers

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Re: Companies use drip pricing to overcharge consumers

#32
I have had the exact same T-Mobile account and plans for more than 10 years now, and I have seen my monthly bill go from ~$82 to ~$86 today because of additional fees. The bulk of my plan has been the exact same, just additional or increased fees for the extra $4. It's not much money, but it's the principle that they can adjust my costs upwards without me consenting, essentially forever, that pisses me off.

Re: Companies use drip pricing to overcharge consumers

#33
post #7

This is far worse than Airbnb. As annoying as the cleaning fees are, they are disclosed before you obligate yourself. A 20% fee only disclosed after you’ve already ordered and eaten is just fraud.

Not to mention that you can search for AirBnbs that have lower cleaning fees.

Once they started including cleaning fees on the regular, often for as much as a single night's stay, I've largely curtailed my use of the service, and have gone back to hotels. Very occasionally, like for an out of state wedding, especially out in the country where hotel options are limited, we'll still at least glance at airbnb type services. I used to really like airbnb but instead of undercutting hotels on price they're often significantly higher, along with significant risk of an unpredictable or even bad experience. Staying at a chain hotel virtually guarantees no unexpected issues and no unexpected charges or drama. The last experience I had with airbnb (two years ago) the host grilled me on why I wanted a last minute booking (pandemic staycation baby-moon). Was not thrilled with the experience. When you book with a hotel all they ask you is for your ID and if you want a king or two queen beds.

Re: Companies use drip pricing to overcharge consumers

#34

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…

> They [Clover] 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.

I have wondered about this as a possible motive. I assumed that shops paid a monthly fee, or perhaps a per-transaction fee. But they're paying based on gross revenue? Do all POS systems work this way?

Re: Companies use drip pricing to overcharge consumers

#35
Interesting. I used to either go to Peets or Starbucks, and after a while exclusively the latter because of the annoying Peets tip thing which I never know what to put on. Is a $2.5 Americano a $1 tip? Who the hell knows? Anyway, I eventually stopped going to Peets. Then a year passes and Starbucks started this shit. The local workers do that embarrassed "and there's a new extra button you have to hit" thing, but it was just a bit more annoying and now I just use the Nespresso pods at work. We just got a bunch more of them.

My colleagues just use the app which doesn't involve that interaction and then they go pick up.

It's probably a strange pet peeve of mine, but having to think about whether I'm disappointing this service worker or being impolite to them or pick the right price or whatever is costly enough that I'd rather just not interact with them.

It's also why I like the market delis, Chipotle, and Sweetgreen so much. You just show up, grab what you want, pay, and walk out. Smooth experience.

Re: Companies use drip pricing to overcharge consumers

#36

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…

There is obviously social pressure against pressing "No Tip". I feel it.

But then I remember that a tip is for good customer service. Starbucks didn't provide me any customer service, they simply transferred the coffee from their vat into my cup. At which point I can feel justified in declining.

I guess they're taking advantage of people who aren't familiar with this view of tipping, which I'd argue is the standard view in the U.S.

Re: Companies use drip pricing to overcharge consumers

#37

This is far worse than Airbnb. As annoying as the cleaning fees are, they are disclosed before you obligate yourself. A 20% fee only disclosed after you’ve already ordered and eaten is just fraud.

I'm not defending the restaurant as I hate this as much as the next person but I'm sure the fee was mentioned on the menu - probably in small print and this was omitted for the sake of a good story.

Re: Companies use drip pricing to overcharge consumers

#38

Earlier quoted context omitted.

> 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…

> They [Clover] 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. I have wondered about this as a possible motive. I assumed that shops paid a monthly fee, or perhaps a per-transaction fee. But they're payin…

I would assume all POS systems have to take a percent cut, given that they clear credit card transactions. They have to at least take 2-3% to cover the cc transaction fee.

Re: Companies use drip pricing to overcharge consumers

#39

I thought it was already illegal to force a change of price after fulfilling your half of the deal? Unless the customer agrees to these fees before service, I don't think you can legally force them to pay it. If they do it without question, of course they can get away with it.

They likely have the sign posted in a place that is easy enough for diners to miss as they enter, but still prominent enough to fulfill legal requirements about giving customers notice of the fee.

Re: Companies use drip pricing to overcharge consumers

#40

I've seen this over and over in SF and now rarely eat out. Many friends and coworkers are taking the same approach, most of whom never used to cook at home. Scamming your customers 5, 10, 20% at a time doesn't seem like a great long term strategy

I just wanted to say that this practice backfires with me. Those want to excercise such tactics better be in the 'deceive a large amount of persons once then go under and repeat' kind of business because they will never see me again. Assuming they could scam me once. Which is harder and harder by each passing occasions others give the liberty to themselves. Being tired of being scammed got me to reacting harsh even to a faint smell of such and make my stand. Especially when they try to wrap it into supposedly guilt triggering tactics like calling it Fair Wage fee, only to expose how unfair they are with their employees. Those wan't to engage in fair and transparent practices will meet my appreciation as it is so hard meeting such services I want to hang on to them and pay fair prices without forcing on me.
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