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Is tipping getting out of control? Many consumers say yes

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221–230 of 1001 posts

Re: Is tipping getting out of control? Many consumers say yes

#221
Most people wouldn't care if it wasn't for the shady things the payment terminals do. Like reordering the tip % to either be reverse of what is expected or random.

Additionally they wouldn't care is the % was standard.

From left to right: 15%, 18%, 20%. Leave it there and stop using dark patterns.

Re: Is tipping getting out of control? Many consumers say yes

#222
post #67

Earlier quoted context omitted.

Yes, thus higher tippers subsidize lower tippers by reducing the list price of goods. If tipping didn’t exist and were instead embedded in wages, the employer would just raise the list prices commensurately. There’s a fair argument to be made that restaurant wages would decline in aggregate without tipping though. Certainly there would be both winners and losers

Which is generally what you want: for less price-sensitive customers to subsidize the more price-sensitive customers; see: any demand curve chart. Of course, raising prices is exactly what happens when you eliminate tipping. But prices are sticky; people react strongly to price increases. They can, to some extent, modulate their tipping behavior (from 25% down to 15%), but if all they can do is take or leave prices,…

Tipping is not about price sensitivity.

On average, less price sensitive people will tip more, but there are no guarantees. Somebody who’s wealthy may still tip 20% over somebody who is less well off tipping 25% because they’re feeling charitable.

Or, more commonly, some people don’t tip at all, even if they can afford it. Anybody who’s worked in food service has experienced this.

You wont find anything close to a linear relationship between wealth and tipping percentage. Most will tip 20% ish regardless, because that’s what’s generally expected

Re: Is tipping getting out of control? Many consumers say yes

#223
post #83

> Tipping is about making sure the people who are performing that service for you are getting paid what they’re owed Here in AU we call that "wages". Having to do quick maths while under social pressure and the threat of having your service quality degraded to make up for an employer or state being unwilling to pay workers enough to live might be called "coercion", but certainly it is externalising costs onto the cus…

I can see the point of leaving a tip when a server has done a really good job (of course they should be paid a decent wage too). For me the annoying bit is being asked to tip before I have been served - I don't know yet if I would like to leave a big tip or a small one.

Re: Is tipping getting out of control? Many consumers say yes

#224

I’ve implemented a personal policy to make it easier for myself and reduce bias: Full waiter experience (seated, handed menu, food brought to table, plate cleared) gets 20%. If the level of service is less than that, the percentage starts to go down proportionally. Counter service is flat-rate $1 per person served. This is the same every time regardless of quality of service (unless something truly malicious happens,…

> Full waiter experience (seated, handed menu, food brought to table, plate cleared) gets 20%. I don't understand this. Why do you Americans tip for this? Isn't being seated, handed a menu, food brought to the table , and plates being cleared part of a waiter's job? Why does the customer have to 'reward' waiters for doing 'a good job'? Why do restaurants not just drop a flat 10% service/cover charge (it's 10% where I…

I do it because it’s a social norm. I’m sure you also do illogical and inefficient things solely because your culture dictates it, weather you realize it or not.

And some restaurants are starting to implement a standard service fee, it’s more common at high end restaurants.

Re: Is tipping getting out of control? Many consumers say yes

#225
I have a personal rule that in order to get a tip you must do something (anything really) that is not simply giving or dispensing me an object that I paid for otherwise. If someone cooked or baked it or brewed it or pulled a shot or whatever great I’ll leave a tip. If it’s just handing me something or pouring into an cup and taking my money I have no problem hitting no tip.

Re: Is tipping getting out of control? Many consumers say yes

#227

I've just opened a coffee shop in Los Angeles last month, and we don't take tips. We only use self-ordering iPads (I've custom coded an iOS app w/ Stripe Terminal for it), and we don't accept cash either. We've had a few customers baffled by the no-tipping policy, and still insisting that they leave a tip. Some even left cash on the counter or on the table. We had to chase a few of them down to return their money. Al…

I'm intrigued and would got out of my way to come to this place on principle.

Re: Is tipping getting out of control? Many consumers say yes

#228
post #62

Earlier quoted context omitted.

We don't have to outlaw it but we should do something more difficult: make it not the social norm.

Not sure how to do that when business can just decide not to pay fair wages and rely on strangers to supplement employee's income through tipping.

It's hard to ban people giving money to people.

But you can require that all posted prices include all taxes, fees, and expected gratuities; AND that the price on the bill include all taxes, fees, and expected gratuities.

Basically, just push the tip into the noise and require that the posted price be the sum of all the hidden fees.

Re: Is tipping getting out of control? Many consumers say yes

#229
post #216

I've just opened a coffee shop in Los Angeles last month, and we don't take tips. We only use self-ordering iPads (I've custom coded an iOS app w/ Stripe Terminal for it), and we don't accept cash either. We've had a few customers baffled by the no-tipping policy, and still insisting that they leave a tip. Some even left cash on the counter or on the table. We had to chase a few of them down to return their money. Al…

You should write a longer piece about your coffee shop! and the process behind it. If you do, you should submit it to HN - and if you do that you should email us (hn@ycombinator.com) because we might put it in the second-chance pool ( https://news.ycombinator.com/item?id=26998308 ).

Just wanted to say, please include some technical information if possible.

I've spent time with and looked into developing for Clover and set up other POS systems. I've also tutored people pursuing their CS degree while bartending that want to make their own system. I'm very interested in this space since it seems impenetrable. Small businesses can't take too many risks and trying to sell a tailor-made POS seems impossible. Obviously the situation is different, though.

Re: Is tipping getting out of control? Many consumers say yes

#230

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

I noticed the expected tipping percentage go up after most customers started tipping in credit. Tipped workers had to up their game because they can no longer do tax evasion with everything on the record. Back in the days where most paid their restaurant with cash, tips were more like 15%. The move from 15 to more like 20 to 25% almost perfectly corresponds with the amount needed to make the same earnings after tax.

When I was a kid, Emily Post said always tip 10%. In college, the buzz around campus was that 15% was what the proletariat deserved. The past decade or so, I keep hearing you need to give 20% if you don't want to make enemies of the servers. Now, are you telling me it's become 25%?
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