Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Companies use drip pricing to overcharge consumers

passingtime.substack.com

Post reply on HN
Print view View original

171–180 of 425 posts

Re: Companies use drip pricing to overcharge consumers

#171

Post by xbar »

nraynaud wrote: post #161
crazygringo wrote: post #84

Note that drip pricing for restaurants (e.g. 10-20% non-tip surcharge) is illegal in many jurisdictions (if not "conspicuously advertised" before eating), but some restaurants try to do it anyways (claiming the policy is "conspicuously advertised" on the last page of the menu, or a tiny sign behind the bar). Sometimes you can just refuse to pay it and they'll back down because they want a repeat customer more. Someti…

In France the prices have to be visible from outside the restaurant and you’d better be able to pre-compute your final bill before pushing the door. I am always surprised that a country like France protects its invisible market hand better than the US that is more capitalist minded. Information symmetry is absolutely essential for market actors to behave in their own best interest.

Is that all of EU?

Re: Companies use drip pricing to overcharge consumers

#172

Post by bakugo »

jzb wrote: post #57
chamwislothe2nd wrote: post #26

Earlier quoted context omitted.

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

The staff's pay is not the customer's responsibility, neither is whatever the other customers do.

Re: Companies use drip pricing to overcharge consumers

#173

Post by nobody9999 »

itronitron wrote: post #75
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…

Our family went out to eat a nice restaurant over the holidays and our bill had the '20% economic recovery fee' tacked on at the end. Naturally we didn't leave a tip and were happy to return a few days later to repeat the process. I'm usually happy to tip at restaurants, and if there is any surcharge on the bill like this then I just consider it the tip, as they often tack on for large groups.

>Our family went out to eat a nice restaurant over the holidays and our bill had the '20% economic recovery fee' tacked on at the end. Naturally we didn't leave a tip and were happy to return a few days later to repeat the process.

If you used a card to pay, you may well find yourself listed by name at https://bitterwaitress.com (N.B., this used to be hosted on the open web, now it's behind the Facebook login wall, so I won't be looking at it).

Re: Companies use drip pricing to overcharge consumers

#175

Post by JoeAltmaier »

djkivi wrote: post #107
JoeAltmaier wrote: post #82

Earlier quoted context omitted.

Not tipping your waitstaff? That's cruel - that's part of their pay, which they need to get to minimum wage. Expect to be treated like dirt next visit. I would.

They were treated like dirt on this visit--being asked to pay an unexpected 20% extra.

Not by the waitstaff. Why not kick the dog on the way out too?

Re: Companies use drip pricing to overcharge consumers

#176

Post by flemhans »

adamwong246 wrote: post #11

All the more reason to stay home and cook your own food.

It's still sad when options are being limited. A nice world would have high-quality affordable produce for home cooking as well as affordable dining out.

Dining out should be cheaper than cooking yourself, since they can optimize the process and buy in bulk.

Re: Companies use drip pricing to overcharge consumers

#177

Post by imroot »

Hotels are horrible for this.

This is what my itemized stay was for a single night:

2023-01-18 * Residence Inn

    expenses:travel:marriott         171.00 USD

    expenses:taxes:salestax:tx        10.26 USD

    expenses:taxes:salestax:tx:plano  11.97 USD  ; city hotel tax

    expenses:fees:recovery             1.28 USD  ; tax recovery fee

    expenses:fees:recovery             2.13 USD  ; parking recovery fee

    expenses:taxes:salestax:tx          .18 USD  ; taxes on parking recovery fee.

    assets:checking                 -196.82 USD  ; date: 1/20
A $2.13 "Parking Recovery Fee" is charged to cover the expense in building their parking garage...and then, they charge me another sales tax on top of the parking recovery fee, then charging me a recovery fee because they need to recover the credit card fees charged on the city and state sales tax items.

Resort fees are also becoming more and more common, even in hotels that shouldn't need a "resort fee" -- if I'm staying at an Embassy Suites in the middle of nowhere, Iowa, why do I need to pay a resort fee?

Re: Companies use drip pricing to overcharge consumers

#178

Post by Alupis »

TuringNYC wrote: post #29
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.

Along these lines - does anyone comprehend how the taxes and fees can vary month-to-month on your phone bill?

For an unlimited plan, there's really no variation month-to-month. It should be the same freaking bill each month - yet it's always a few-to-a-dozen cents different each time.

Re: Companies use drip pricing to overcharge consumers

#179

Post by autoexec »

adamc wrote: post #100
benj111 wrote: post #53

Earlier quoted context omitted.

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.

Unfortunately, for many people that ruins their night out. It is often more practical to pay it and never return.

The good news is that if everyone does that it'll still not be worth it to continue their deceptive practice, the bad news is that not everyone will stop going to the restaurant and the owner who sees the number of customers decline might be thick enough to assume it's for some other reason. I wouldn't make a scene, or let it ruin my night, but I'd make it clear that the hidden charge lost them my business.

Re: Companies use drip pricing to overcharge consumers

#180

Post by Alupis »

post_break wrote: post #122
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…

Visible is $30 all in.

Not anymore. It's $45 for the actually-usable plan if you have a modern flagship smartphone. Gone is all the "party" pricing stuff that made them so popular in the first place.
Post reply on HN