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Tip pressure might work in the moment, but customers are less likely to return

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Re: Tip pressure might work in the moment, but customers are less likely to return

#171

Post by bdangubic »

anal_reactor wrote: post #67
jaco6 wrote: post #19

I work at a Dominos and we of course accept and expect tips on delivery, because without tips the drivers would make But at checkout for carryout orders the card terminal also now opens a tip menu. I would never tip on this screen because the employees are already paid a true hourly wage, albeit a low one, not a server rate that is below minimum wage. Furthermore there is no way for the customer to know if the employ…

>the drivers would make Not my problem

I feel the same way and if EVERYONE felt the same way things would change rather quickly. if everyone stopped tipping every pizza delivery driver most would quit shortly thereafter and dominos/papa johns… would have no choice but to pay adequate wage.

however, since most people are tipping the ones that don’t are as the assholes :)

Re: Tip pressure might work in the moment, but customers are less likely to return

#172

Post by everforward »

thankyoufriend wrote: post #170
everforward wrote: post #168

Earlier quoted context omitted.

Delivery drivers incur expenses (gas, depreciation, oil changes, etc) that can result in their “net wages” being below minimum wage. I don’t think claiming the mileage fully recoups those costs.

Good point - it's much more complicated than I made it seem. I think we should just pay everyone a living wage and make it much simpler :)

I only know because a friend was a delivery driver and complained - it’s so easy to overlook. Completely agree, no one should have to worry about whether working full time is enough to exist on.

Re: Tip pressure might work in the moment, but customers are less likely to return

#173

Post by jaco6 »

anal_reactor wrote: post #67
jaco6 wrote: post #19

I work at a Dominos and we of course accept and expect tips on delivery, because without tips the drivers would make But at checkout for carryout orders the card terminal also now opens a tip menu. I would never tip on this screen because the employees are already paid a true hourly wage, albeit a low one, not a server rate that is below minimum wage. Furthermore there is no way for the customer to know if the employ…

>the drivers would make Not my problem

I don’t care if you, an idiosyncratic individual, don’t tip. 95% of my customers tip, so weirdos like you have no effect on my average income.

Re: Tip pressure might work in the moment, but customers are less likely to return

#174

Post by bdangubic »

jaco6 wrote: post #173
anal_reactor wrote: post #67

Earlier quoted context omitted.

>the drivers would make Not my problem

I don’t care if you, an idiosyncratic individual, don’t tip. 95% of my customers tip, so weirdos like you have no effect on my average income.

all that is wrong with US culture summed up in one sentence. instead of realizing you are slave employee being paid less than people in 3rd world countries and relying on handouts from customers you call ones that do not want to give you an undeserved handout a weirdo…

Re: Tip pressure might work in the moment, but customers are less likely to return

#175

Post by Brian_K_White »

BenjiWiebe wrote: post #166
Brian_K_White wrote: post #105

Earlier quoted context omitted.

Incorrect. Visa charges 2.5-3%. It's not part of the burrito like the electricity.

Exactly. The Visa fees are a percentage (sometimes plus a per-tx fee as well). Electric bills don't usually double when the customer spends twice as much.

The distinction I meant to make is the "cost of doing business" is all the things required to do whatever your thing is.

The food ingredients, the building rent, the electricity and cooking gas, those are all required to make the burrito, every burrito.

The credit card exchange fee is like chocolate sprinkles on ice cream. It's a completely seperate and optional thing. This totally seperate company offers an extra service you may or may not want to add on top of your burrito.

That's nothing at all like the electricity, and is not at all part of the cost of doing business. It's the cost of doing an entirely seperate business.

Re: Tip pressure might work in the moment, but customers are less likely to return

#176

Post by ac29 »

bdangubic wrote: post #84
TheDong wrote: post #75

Earlier quoted context omitted.

Electricity and so on are already included independently of the payment method. Yes, the store should be charging enough to its customers that it can afford electricity, and if it can't afford electricity, it should increase its prices. It's not worth trying to account electricity use per-customer though, obviously, and it typically won't really vary by customer much anyway. Credit card fees on the other hand do vary…

none of this makes sense of course if you want electricity, you call electric company, turn it on and you get a bill for usage. you want the priviledge of using visa at your store, you call them and get it all setup and and then you get a bill for this. it is cost of doing business and you can’t pass that shit off to customers

> it is cost of doing business and you can’t pass that shit off to customers

If a business doesnt pass on its costs of doing business to customers, they will go out of business. The cost doesn't need to be passed on as a fee or surcharge, but it does need to be passed on.

Re: Tip pressure might work in the moment, but customers are less likely to return

#177

Post by ac29 »

cute_boi wrote: post #48
rootusrootus wrote: post #32

Earlier quoted context omitted.

If you charge 3% just to credit card users, they are now subsidizing the cash customers. I am guessing you are assuming the cost of cash handling to be zero.

well they must take cash anyway, so cost of handling cash isn't that significant compared to fixed+variable cost of credit card.

Its been a long time since I worked retail, but I remember the costs of cash handling to be quite a bit more than you might assume:

-Count cash drawers in and out for every employee, every shift

-Count cash payments received & change returned

-Prepare daily bank deposits

-Take daily bank deposits to bank, get more change

I couldnt say exactly what percentage all of that adds up to, but I could see it being 3% or maybe even more.

Re: Tip pressure might work in the moment, but customers are less likely to return

#178

Post by ac29 »

atmavatar wrote: post #96
dataflow wrote: post #34

Earlier quoted context omitted.

> tips are tax-advantaged (there's no sales tax on the tip) Someone please correct me if I'm wrong, but the bigger tax that's avoided here is corporate taxes, I think. The tip goes directly to the employee, and it's thus not taxed as corporate income, is my understanding. EDIT: Ah, I missed that corporate taxes were on net earnings rather than gross, so this wouldn't make any difference. Thank you!

The primary corporate advantages to tips is they allow the business to display artificially low prices to customers (since they don't include the tip) and pay artificially low wages to employees (tipped jobs have a lower minimum wage).

> tipped jobs have a lower minimum wage

This isnt true in Alaska, California, Minnesota, Montana, Nevada, Oregon, or Washington.

And in the states where it is true, the employee is still required to be paid at least the full minimum wage inclusive of tips.

Re: Tip pressure might work in the moment, but customers are less likely to return

#179

Post by ac29 »

HDThoreaun wrote: post #158
jghn wrote: post #36

Earlier quoted context omitted.

> It's standard to tip 15% for decent service in a restaurant This is not true, and hasn't been for some time [1] [1] https://www.researchgate.net/figure/Average-reported-tip-rat...

Depends on the state since some are increasing base tipped wage. In california tipped workers get $15/hr plus tips so many have decreased tip to 15%

CA minimum wage is currently $16/hr, and higher for fast food workers (though those are often untipped jobs).

Re: Tip pressure might work in the moment, but customers are less likely to return

#180

Post by ac29 »

GaryRaymond wrote: post #127

Just came back from Spain, France and Italy. None of the restaurants have tipping. It makes for such a better and more relaxed experience. The U.S. needs to get with it.

Yep I was in a different part of Europe recently and it was the same. This wasnt about cultural norms, there was literally no way to tip when paying with a card most places (aside from leaving cash).
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