Here’s a Tip
Posted by Gail | Filed under Money Management
Have y’all seen those credit card machines that offer you the option of choosing a preset tip in restaurants? Given that spending money on credit cards is easier than spending money in cash, do you think we’ll tip more because we’re being hinted at?
We will.
Look what happened in New York after cabbies started accepting credit cards. While cabbies practically went on strike to protest the fact that they’d have to accept plastic, two years later they’re laughing all the way to the bank. And credit cards have been heralded as the savor of the cab biz during the most recent financial downturn.
Apparently more and more fares are being paid with credit cards, even for short rides. And tips for drivers have been going up, up, up. While they were in the 10% range when customers had to pony up with cash, now they’re in the 13% range on average. And cards aren’t just being used for those long trips to and from the airport. Even the short jaunt is put on plastic. When those terminals are proffered with tip options, people opt for the easy choice. The presets are used about 70% of the time. Since a fare of under $15 comes with a tip option of $2, $3 or $4 (a buck fifty would be 10%) you can see the direction tips are headed in.
Rules abound for who you should tip and how much. But each of us goes about this a little differently.
If you go to get your hair done at a salon, will you tip the body who washes your hair? How about the person who cuts your hair? And the person who colours your hair?
When you go to a hotel and order room service, do you add a tip to the 15% already levied on the bill by the hotel? Or do you simply sign the bill and leave it at that? Do you tip the housekeeping staff? How about the people who hail you a cab?
When you go into a bar, do you tip the bar-tender for each drink? At the end of the night? Even if you only get a glass of water or a soda?
When you eat in a restaurant, do you tip on the total bill or on the total before taxes? And if you eat with friends do you split the tip evenly or tip on your portion of the bill? How about when you eat at a buffet-style restaurant and all your waiter brought to the table was a round of drinks?
I tip 15% for good service, more for exceptional service, and nothing at all when the service sucks. Hey, it’s my money. And if servers want some of it, then I expect to be treated courteously, dealt with quickly, and be offered a smile or two and a wee bit of interaction.
Discussions about tipping get really hot when those who live on tips get into the fray. While The Spurts want to help you decide how much is a good tip, and how much is wasteful, the guys and dolls who depend on those tips get into a twist when anything less than 15% is recommended. A while back, Oprah did a thing on her site on tipping that made a lot of people really mad. Hey, I’m not getting into the how much debate. You tip what you want to tip. It’s your money, right?
Well, maybe not if you’re putting it on that credit card. And if you’re just hitting the button when you’re offered the pre-set tip option, you’re not even tipping consciously. You’re just doing it mechanically. That’s never a good thing. Unconscious anything is dangerous.
How do you tip? Do you tend to tip a higher percentage on a lower bill and watch your tipping more when the bill is a biggie? Do you tip because you once were a server (or have a kid who serves) and feel the pain? Do you tip big because you’re worried people will think you’re cheap? Com’on, fess up!
August 10, 2010 at 1:55 pm
Darn, I wanted to be #100.
@Geoff, I know what you are saying. From reading you these past months, I know you are very savvy with investments. Me? Not my department. We have a financial advisor and DH has the know-how. I’m a very conservative investor with my stuff.
Had a chuckle this a.m. Remember the elderly gentleman (aged 87) I mentioned that brought chocolates? He was in this a.m. and our goody drawer has been replenished.
August 10, 2010 at 1:55 pm
I tip housekeeping about $4/day at resorts while on vacation and give it to them at the end of my stay. I tip 15 to 20 % to waitstaff.hairdressers. if service is terrible I don’t tip. If I give someone the chance to change as I am telling them I am not happy during my meal and they don’t, I don’t tip. It’s like telling me to pay for something which is broken and be happy with it. I was a server and when I was crap at my job I didn’y deserve gratuity.
August 10, 2010 at 3:28 pm
I am “One of Those” who used to work in the restuarant industry. I know how hard it is, and that cooks/bussers and the hostess are getting a share of the tips earned.
If the service is great I ususally over tip at 20-25% (I know, I know), if the service is bad then about 10-15%
Or there are the times where I see my server not doing their job at all, ie going for smoke breaks, chatting with other servers/bar tender, friends that came in, etc instead of doing their job then the tip goes down.
I tip my hairdresser about 20% b/c without him I would be lost.
August 11, 2010 at 3:14 pm
Hey guys!
This is one heated debate, and I have to say that while I have never worked in a job that relies heavily on tips, I’ve always worked on Commission with a provincial minimum wage. Although I am now a manager, and no longer on commission, I have had employees that often complained that they don’t make enough money. I simply tell them that commission (like tips) are monetary compensation for your vested interest in keeping your customers happy. Strike up a good conversation. Follow up with your customers after the sale. Remember their names. It doesn’t take much to build a loyal clientel that will want to reward you for keeping them top of mind.
To those who say “Bad service = 10-15%, Good service = 20-25%”, I say “In my business, Bad service = 0$, Good service = $$”. I have been known to tip a penny for crap service and up to 25% (or higher) for someone who has really “Wowed” me. If you service industry people want my money, you have to realize that everyone has bad days. In the service industry and retail, you have to suck it up and realize that while the person in front of you may be the 50th customer you’ve served, you’re the first representative of your company they’ve talked to that day.
And before you say “It’s not fair because my tips depends on the cooks, bussers, hosts/hostesses doing their jobs right”, the commissions of my associates depend on shippers, couriers, manufacturers, repair depot personnel and a large name company that can change policies on products with little warning. There’s no after-sale support and no limited manufacturers warranties on food. You have one chance to make a good impression: While I’m sitting at a table in your section. Get it right, or if something’s wrong, make it right. Do this the first time you see me and I’ll keep coming back, with tip money for you.
-That Electronics Geek