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Companies use drip pricing to overcharge consumers

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Re: Companies use drip pricing to overcharge consumers

#52
post #33
post #7

Earlier quoted context omitted.

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…

A single night's stay is actually a great use of a cleaning fee, because the cost of cleaning can't be spread between multiple nights.

Re: Companies use drip pricing to overcharge consumers

#53

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.

Just don't pay the fee. Or call the manager over and ask why they arent paying their staff properly.

Companies only pull this stuff because they get away with it. Don't make it worth their while.

Re: Companies use drip pricing to overcharge consumers

#54

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.

This. The other industries mentioned might tack on fees at check-out time, but the service/product hasn't yet been consumed, so the consumer can back out. This isn't true with dining out, where you see a price list, order, eat, and then get a bill at the end. You can no longer opt to eat elsewhere. You either make a scene or pay the undisclosed fees. Restaurants should at least put a notice on the menu in a highly vi…

If an establishment adds a 20% surcharge to a dining check, that's a tip, and generally considered to be on the higher end in the US. I would simply consider them to have chosen my tip amount for me and leave it at that.

Re: Companies use drip pricing to overcharge consumers

#55

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…

When I go to Starbucks now I always order in the app first and pick up at the counter, even if I'm already there.

Re: Companies use drip pricing to overcharge consumers

#57

Earlier quoted context omitted.

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.

Yes, because as we all know, service staff have enormous power and dictate restaurant policy. This is why they're so highly paid and aren't abused at all by customers, for example. /s

Re: Companies use drip pricing to overcharge consumers

#58
post #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.

That is defending the restaurant.

If it was tiny fine print then it was intended to be missed.

Re: Companies use drip pricing to overcharge consumers

#59

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

Same for me. I am feeling more and more that a lot of businesses are becoming more and more dishonest and are basically just trying to rip their customers off. I don't enjoy concerts, sports or restaurants anymore because of this and lately I also resent going shopping at places that have one of the tablet checkouts that tries to guilt trip into a 20% tip. One more reason to become cynical. As if the world isn't cynical enough already.

Re: Companies use drip pricing to overcharge consumers

#60

Earlier quoted context omitted.

This. The other industries mentioned might tack on fees at check-out time, but the service/product hasn't yet been consumed, so the consumer can back out. This isn't true with dining out, where you see a price list, order, eat, and then get a bill at the end. You can no longer opt to eat elsewhere. You either make a scene or pay the undisclosed fees. Restaurants should at least put a notice on the menu in a highly vi…

If an establishment adds a 20% surcharge to a dining check, that's a tip, and generally considered to be on the higher end in the US. I would simply consider them to have chosen my tip amount for me and leave it at that.

> and generally considered to be on the higher end in the US.

Maybe in 1998 but it's pretty much standard now.

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