Earlier quoted context omitted.
Tips subsidize profits, plain and simple. But, America runs on poverty, so this is in line with the broader socioeconomic strategy.
> Tips subsidize profits, plain and simple. Nah. Profitability for the business would be higher without tips. I take x% of gross income as profit. No tips means I can charge the customer more, which means a higher gross income, which means more profit. When tipping is involved, the money slips through without allowing the business to take its cut. Good for the server, but not good for the business. However, as theore…
“No tax on tips” is an industry plant
361–370 of 618 posts
Re: “No tax on tips” is an industry plant
#362Earlier quoted context omitted.
I suggested we do this at work. We’ll add a tip field to our Jira tickets and whoever’s ticket is worth the most gets priority. Oh you submitted a production incident a week ago? Sorry, there’s not even $5 on it, we filter those out.
We may just get this, along with a $7.25 per hour base wage!
It's $2.13 for tipped employees.
Re: “No tax on tips” is an industry plant
#363Earlier quoted context omitted.
It is a mechanism to move labor costs to the consumer. On some delivery apps , the driver can decide which jobs to take based on the pre-service tip. So the companies have effectively put the responsibility to pay driver's base wage on the users themselves, while the company still takes a huge corporate cut
> It is a mechanism to move labor costs to the consumer. How does this work? The corp already handles some form of payment to the worker, especially when you tip as part of a card payment. And in both cases, the consumer foots the bill. How's it different from paying the worker more and asking for more money upfront?
There is a very clear different from the consumer's point of view between paying a 20% delivery fee with no tip (and realistically having most drivers still expect an in-person tip) and a 5% delivery fee with a tip amount of your choosing (and maybe only 1/1000 drivers expecting/requesting yet more).
I have always been a generous tipper and I try to always put myself in that person's shoes when deciding how much to tip but even I notice the psychological difference. If you don't ever think about it, have never had a job waiting tables or dealing with the public, it'd almost be a nonstarter to have a higher delivery fee regardless of tip expectation.
Re: “No tax on tips” is an industry plant
#364Earlier quoted context omitted.
I suggested we do this at work. We’ll add a tip field to our Jira tickets and whoever’s ticket is worth the most gets priority. Oh you submitted a production incident a week ago? Sorry, there’s not even $5 on it, we filter those out.
We may just get this, along with a $7.25 per hour base wage!
gotta charge less than the hourly cost of a B200 to remain employed
Re: “No tax on tips” is an industry plant
#365Earlier quoted context omitted.
We may just get this, along with a $7.25 per hour base wage!
It's $2.13 for tipped employees.
Not in all states. California does not have a lower tipped minimum wage. It's at least $16 here last I checked (except $20 for fast food because "reasons")
Re: “No tax on tips” is an industry plant
#366Earlier quoted context omitted.
It moves the real cost of the additional labor from the prices displayed for items (like you would see in a B&M grocery store) to some tertiary part of the purchase process that is displayed 1) after the used has gone through the effort of app navigation and selecting their purchases and 2) has been through the majority of the purchase funnel and self-selected as a high-prospect sale. This helps keep the listed price…
That is true. What is also true is that having things delivered to you is not free, and the prices of the goods cannot be same for delivery vs warehousing in a store.
Sure it can.
I'm not saying it's free but it's not a foregone conclusion that 100% (or any percent) of that cost must be passed on to the consumer.
If a manufacturer/distributor/restaurant is willing to accept lower margins for the increased reach and market access, they will.
Re: “No tax on tips” is an industry plant
#367What confuses me most is when you are given the option to give a tip before any service has been given. On deliveroo, for example, I have the option to tip the driver while I'm at the checkout. Why would I give a reward for good service when I have no idea if the service is even good? There's already a rider fee as part of my bill, so it doesn't make any sense to me to give them more money at that point
In a Louis Rossmann video (i think it was the one on food delivery guys on e-bikes) he mentions never tipping in app but leaving a note that says he will give a cash tip if the driver brings the food straight to his door. That seems like a decent compromise as it doesn't let the app take a cut from the tip and makes so the driver actually goes the extra mile to 'deserve' the tip.
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Re: “No tax on tips” is an industry plant
#368Earlier quoted context omitted.
I grew up in France and tipping in restaurants was definitely a thing, albeit on an entirely different scale than in the US. Leaving a few francs (I'm not young) was common practice. With cash payments growing more rare, and without the ability to tip easily with cards, maybe it became much less common. That said, I don't disagree with your comment on how it's spreading. What I don't love about the terminals asking f…
>Now, in Portugal, we're starting to see cases of "here's the price with a 3€ tip (for example), if you want to pay that", and you awkwardly get to say "no thanks I want to pay the actual price", which I find very unpleasant. I've lived in Portugal for 30 years and I never had that happen to me. Where are you seeing this? I could only imagine it in a place that only serves tourists and foreigners.
> I could only imagine it in a place that only serves tourists and foreigners.
Maybe not "only", but yes, they're typically Americanized brunch places, or other "trendy" places. And some of those places have good food worth eating.
It's still a pretty rare thing, fortunately. Something less offensive that I'm running into more often is to be asked if we want to leave a tip. And more common still are PoS systems that give you the option on checkout.
Probably not the thread to digress into what's happening to dining in Lisbon (eg the rameniffication of everything) but it's definitely bringing in a more tip-forward mindset.
Re: “No tax on tips” is an industry plant
#369Earlier quoted context omitted.
There’s very little empirical evidence correlating tipping with better service.
Anyone who has worked in a restaurant or bar can provide plenty of observational data that if you provide better service you will be tipped better. I would recommend trying out working as a server/bartender you will understand tipping a lot better.
Why should we tip restaurant workers but not janitors or phone customer service reps? Why are they better than other types of service workers?
Re: “No tax on tips” is an industry plant
#370For example, Amazon caught lowering delivery driver pay with the tips making up the difference and then lying about it: https://www.ftc.gov/system/files/documents/cases/amazon_flex... > At the outset of the Amazon Flex program, from 2015 through late 2016, Amazon paid drivers at least $18 per hour plus 100% of customer tips > Beginning in late 2016 ... Amazon secretly reduced its own contribution to drivers’ pay to a…
> I can't imagine there are many other opportunities to steal $61m with the only punishment when you're caught is having to pay it back.
There was a very famous viral video of a woman stealing offering to just pay for the goods when she was caught, but we all understood why that was a ridiculous idea. Maybe she was just an Amazon VP, so she didn't know any better