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Why Tipping Is Impossible to Get Rid of in America

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Re: Why Tipping Is Impossible to Get Rid of in America

#51

Earlier quoted context omitted.

The problem is the incredibly low wages employers are allowed to pay at tipped establishments. Federally that wage is $2.13 per hour. https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

That's only if the employee has earned more than $5.12 in tips. For what it's worth, I know many illegal aliens making $+20/hour in tips. Minimum wage here is not a problem.

For what it's worth, I don't know anyone who has had the employer make up that $5.12 when they didn't get it in tips, and kept the job.

Re: Why Tipping Is Impossible to Get Rid of in America

#52

"Customers looked at the higher prices ($25 for the chicken instead of $21, $17 cocktails instead of $14) and ordered fewer and less-expensive items, even though they were paying exactly the same amount for them by tacking 20% onto the check at meal’s end." You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket sci…

A $25 burger is more expensive than a $20 burger with a 20% tip ($24). But maybe that proves your point? :)

Re: Why Tipping Is Impossible to Get Rid of in America

#53

You think restaurants are bad... you should see services like UberEats and DoorDash drivers. I have had orders cancelled by the driver because they found something that tipped higher despite me tipping $7 for something down the street less than 1 mile from my house. I have also tipped $20 only for instructions to be ignored where I put my gate code, unit# and ask for it to just be dropped off at my door step but the…

I've had delivery drivers give me my order only after explicitly telling me to tip more - which was frustrating because I actually increased my tip from $5 suggested by the app to $7 cause it was a snowy night. Some people won't be happy no matter what you do for them.

Re: Why Tipping Is Impossible to Get Rid of in America

#54
post #8

I think there is a 3rd possibility in how tipping ends: people get sick of tipping and stop doing it. It seems like every single transaction asks for a tip these days. I tip heavily, but even I am getting weary of tipping so often. Most of the time, it feels like the tip shouldn't be necessary; the employers should be covering the cost of the employee. If people get used to declining tip prompts, it's possible that w…

Especially post-pandemic, I've come to view those flip-around screens as an opportunity for direct, voluntary, progressive income redistribution, or price discrimination, if you like. Paying an extra couple of bucks for falafel or a slice of pizza really doesn't mean anything to me, it presumably means a good bit more to whomever's behind the Square terminal.

Re: Why Tipping Is Impossible to Get Rid of in America

#55

"Customers looked at the higher prices ($25 for the chicken instead of $21, $17 cocktails instead of $14) and ordered fewer and less-expensive items, even though they were paying exactly the same amount for them by tacking 20% onto the check at meal’s end." You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket sci…

I’ve come to believe that most people are not cheap but they have an aversion to feeling like they were suckered out of their money.

They will pay $65k for a truck that is known to have incredible margins for the manufacturer, and be delighted to do so, unless they find out they could have gotten it for $59k.

Re: Why Tipping Is Impossible to Get Rid of in America

#56
post #52

"Customers looked at the higher prices ($25 for the chicken instead of $21, $17 cocktails instead of $14) and ordered fewer and less-expensive items, even though they were paying exactly the same amount for them by tacking 20% onto the check at meal’s end." You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket sci…

A $25 burger is more expensive than a $20 burger with a 20% tip ($24). But maybe that proves your point? :)

Haha yes I should have just said $24(although I know most people would just round it up). Well pointed out.

Re: Why Tipping Is Impossible to Get Rid of in America

#57
I was totally fine with tipping for 30 years of my life until I recently encountered a gas station checkout with a tip prompt. I heard Captain Picard in my head telling me the line must be drawn here. Now I only tip at dine in restaurants where I eat often and generally the bare minimum because of the inflation of base menu prices. I am not paying anyone $25 to bring me food and drinks.

Incidentally I've known plenty of people over the years who have worked in food service who never seemed to be lacking in cash for drugs, big car payments, expensive clothes. If just one sucker is willing to tip you 15% once per hour you're doing fine. If you're going home with hundreds of easily tax evadible dollars in your pocket at the end of the day stop complaining to me.

Re: Why Tipping Is Impossible to Get Rid of in America

#58
For context : restaurant and bars in many ( most ? ) countries function without tips. Function=do not go belly up too much.

More context : the state take over some employers responsibilities by providing healthcare, unemployment, and retirement insurances. ( none of that is free, it’s been pay by both employers and employees )

More context : prices are fair, in the sense that middle class folks in those place can afford to go get intoxicated in bars and eat food in restaurant.

Now the question, dear American friends : what type of exceptions make those things unreal in your place?

It’s not a trick question, I live among you since a while. I don’t see tips going away like I don’t see firearms disappear.

But I’m merely an experienced watched of your society, so maybe you can explain me why tips are still a thing.

Re: Why Tipping Is Impossible to Get Rid of in America

#59
post #35

"Customers looked at the higher prices ($25 for the chicken instead of $21, $17 cocktails instead of $14) and ordered fewer and less-expensive items, even though they were paying exactly the same amount for them by tacking 20% onto the check at meal’s end." You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket sci…

Back in the day, I used to oversee a lot of usability research for a well-known travel engine. Every single time, people would choose the lowest possible base price. It did not matter if you explained to them how uncomfortable it might be, any add-on fees they'd occur, quality of product, or literally anything else. All that mattered was the first number they saw. I don't know if it's a uniquely American thing, but t…

Almost certainly not uniquely American. I don't remember any behavioral economics research on this particular topic but it seems to be a pretty fundamental cognitive bias. (Of course, if someone is really just looking for the lowest price it's reasonable to expect that they'll mostly ignore the fact that they're going to be riding in the luggage compartment.)

Re: Why Tipping Is Impossible to Get Rid of in America

#60

Make no mistake, tipping continues in America because most Americans like the system. If you don't like to tip, there are plenty of restaurants where tipping isn't expected; specifically those where you carry the food yourself from the counter to your table. If enough people hated tipping, restaurants that don't have tipping would eventually out-compete those that do. They may yet do so, but presently most of the pub…

> If you don't like to tip, there are plenty of restaurants where tipping isn't expected; specifically those where you carry the food yourself from the counter to your table.

Generally such restaurants serve significantly different kinds of food, and are typically lower quality. You can't expect these kinds of restaurants (typically fast food, food trucks, buffet food, etc.) to out-compete restaurants that they are hardly even competing with in the first place (e.g. fancier sit-down restaurants).

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