Dow-5.67down-0.06%
9,725.58
Nasdaqunch0.00%
2,110.33
S&Punch0.00%
1,057.58
Liz Pulliam Weston

The Basics10/5/2009 12:01 AM ET

The rude new tip-jar economy

There are times you should tip and other times you may wish to, but we're getting squeezed like never before. Here's my tip: Don't cave in to the pressure.

By Liz Pulliam Weston
MSN Money

I pride myself on knowing how to tip and on being a generous tipper. But a recent encounter left me reeling.

I got a massage from a chain that offered a $35 special rate. It was a good massage, so I'd planned to tip 20% of the usual $49 cost. That is, until I hit the checkout counter and saw a sign informing me that the minimum tip was $10 and a really good tip was $20.

My brain froze. I wanted the masseuse to know I had appreciated her work. I put a second $10 in the tip envelope. But as soon as I hit the street, I was ticked.

Because I knew I'd been had. The massage was good, but the provider did not deserve a 41% tip.

There's no question tipping is part of the social convention in the U.S. But, increasingly, we're being pressured to tip more and in more situations than ever before.

Resisting the changes makes us feel like jerks, but giving in makes us feel like chumps. Either way, it's embarrassing.

Gratuitous affronts

Just a few examples of these little outrages:

  • Those tip jars that have popped up on seemingly every counter in America, even at fast-food counters and, amazingly, some drive-throughs.
  • Apparently mandatory "service charges" of 15% to 20% now added to bills for restaurants (especially when a group is involved), cruises and hotel room service.
  • People who in the past didn't accept tips, such as hair salon owners, but who now seem to expect them.
  • Businesses that allow you to tip only in cash, rather than add it to your credit card slip.

I certainly understand that customs change, as I wrote in "Here's a tip: 20% is the new 15%." But I want choice in where and how I tip -- a choice that some businesses seem determined to take away.

Etiquette expert Peter Post agrees with me, but only to a point. He doesn't like tip jars or other attempts to strong-arm customers into unnecessary payments, and he was satisfyingly outraged by my massage experience.

"I'm astonished somebody would do that," said Post, the director of The Emily Post Institute and author of five etiquette books, including "The Etiquette Advantage in Business:Personal Skills for Professional Success." "They're creating frustration for their customers, and that's not a good idea. They should just raise the price rather than doing what they're doing."

But Post actually likes having service charges included in restaurant bills, because he thinks our tipping customs in this area are a big hot mess.

The reality of tipping

Instead of providing incidental rewards for a job well done, he points out, restaurant patrons in the U.S. are expected to make up for the often ridiculously low wages -- in many states, well below federal minimum wage -- that restaurants are allowed to pay their wait staffs.

"We know that they are underpaid in many states. The tradition is that (wait) people aren't paid a living wage," Post said. "Like it or not, that's the way it is."

Etiquette and common decency preclude us from protesting the system by denying the wait staff a customary tip. But not everyone plays the game by the rules, leaving restaurant workers vulnerable to the whims of bad tippers.

Video: Tips for successful complaining

Service charges level the playing field, ensuring the wait staff makes a decent living while still allowing patrons to reward special service with an extra tip, Post said.

I may grudgingly have to concede his point there. Another advantage, in my view: There's a paper trail for most of the server's income. Cash tips encourage tax evasion, which isn't fair to those of us who try to pay our fair shares.

Risking customer resentment

Restaurants and other businesses that break with long-held custom risk a customer backlash. I certainly don't feel warm and fuzzy about Massage Envy, the place that guilt-tripped me into over-tipping.

I talked to Dallas Bennewitz, the chain's spokesman, who said Massage Envy doesn't have a corporate policy on tipping. But he said the $49 rate I saw advertised was actually the rate for "members" who sign up for a year's worth of massages and that the "nonmember" rate was twice that.

Continued: What I know for sure

 1 | 2 | next >

Rate this Article

Click on one of the stars below to rate this article from 1 (lowest) to 5 (highest). LowRate it 1Rate it 2Rate it 3Rate it 4Rate it 5High
Join the discussion!
Sort by:
1 - 10 of 245
Monday, October 05, 2009 2:16:56 AM
yes, you got it right...
Monday, October 05, 2009 5:36:08 AM

I used to wait table in the 70's and 80's at an aunts restaurant. 10% was a good tip back then and the average plate in the menu was $13. A table of two with drinks would net you $5-10 if you did a good job and talked up the customers. Ten tables a night was average on Fri and Sat nights, as was $80-100 on top of the $2.35 an hour that was "the pay".

     I am at a loss to conceive of a twenty percent tip on top of greatly increased plate prices. My aunt has sold her restaurant in the DC area and the new owner gets $35 a plate and as much for a bottle of wine. That pushes the tab to $120 or more. + 20% makes it a $25 tip and a $150 dinner. That's about $300 per night for waiting tables most of it tax free and that is not including the base pay which is significantly higher. In the 80's my day job was $24 pr hr now after layoffs and no one hiring 40 somethings I make $10. I can't afford to eat where I used to work! The help there makes way more than I.

 

Why should I tip increased percentage on increased prices! Just the price increase alone should take care of the help! I am very angry at people who set themselves up as experts and tell me I have to tip more than 10% that was "good job" when I waited tables!!!

 

20% is outrageous, if you want to be outrageous fine but 10% is still a "job well done'".

Monday, October 05, 2009 6:16:58 AM
Who can afford a message, anyway? take a long hot shower!
Monday, October 05, 2009 6:24:25 AM
I thought the tip jar in the window at the local Starbucks was nuts until I read this article.  If an establishment is going to mandate a tip then it's not a tip, it's part of the fee.   I personally don't leave money in tip jars (except at the little local restaurant where my sons worked Smile.  If I'm at a sit down restaurant, I'll give 20% happily, or more with great service.  But these walk up places that put out the tip jars frost me and I refuse to cooperate.
Monday, October 05, 2009 6:46:57 AM

Just because someone's relative owned .... doesn't mean that is the cost of doing business this month / year.

Get w/ the cost of living, you probably are one of those who chimes in... am on a "fixed income". Hate to tell you this, but 85% is on a fixed in come in the USA ! lol Wink

 

10% is ok.. and I am sure the waitress at Fred's diner appreciates your buying a $4.95  breakfast.. and tipping them 50 cents!  They probably look forward to your returning real soon!!!Open-mouthed

 

How long did you go to school to learn to waitress tables ?  How much did that cost you ? CEU's.. you did have to do CEU's to get that waitressing license , right ?  Did you pay the resturant to work there ? The cashier.. did you pay her/him too ?What about the license of the buisness ? Did you pay for the laundry service ? Cleaning? Phone  while you waitressed ? Pay for flowers, oils.. music ?

 

The article is about a massage.. a professional licensed massage.

A professional massage therapist has to pay all of the costs and then.. tax's to boot.

And guess what.. you said it was tax free...

Hopefully the USA gov doesn't get wind of the fact that you did not pay tax's on your wages..tips.  Because by law.. deary.. you and aunty .. could be jailed.  Because even waitress's have to pay tax's on the tips !

Hope your email isn't listed where they can get ya for tax evasion !

 

People like you are why establishments insist on a % of a tip. 

Canadians are notorious for not leaving a tip at all... when in US. Been that way for the last 50 yrs. Why?  Because many times when traveling.. many tourist do not leave a tip.. they figure they aren't going to be back anyway. Canadians.. always looked at US citizens as rich.. even waitress's, and wouldn't tip.

A bus full of Canadian tourist ( just using as example not all Candians are that way) would stop weekly at Howard Johnson's Dayton Ohio.. many times I'd be there eating. The Waitress's would fight not to wait on them.. actually get in arguements!

Because they would demand the best of service.. have you running back and forth to death .. waiting on them.. and get up and not leave a dime! This was when waitress's was making 75 cents and hour!

A bus full.. and a waitress would be lucky to make $5 on 40- 60 people! Yet she'd be so overwhelmed and over worked.. she'd have to take a break to recover when they left.

So yes I know both sides.

 

I am all for stating the facts up front.. people order.. they pay up front including tip.  Then.. and only then.. do they get the service they paid for! Sounds fair to me!

 

 

 

 

Monday, October 05, 2009 6:57:13 AM
I brought my family to the Virginia State Fair this past weekend and I was amazed at the number of tip jars.  If I am paying $15 for two slices of pizza and one drink, what makes you think I am going to toss some change into your tip jar?  Ri-goshdarn-diculous
Monday, October 05, 2009 6:57:14 AM

I still feel a tip is a voluntary guesture based on good service.  I refuse to leave a good tip for poor or sorry service.  I have been to restauarants and dropped $50 for a 2 person meal with appetizer, etc. only to be waited on by a wait person who after the inital foray never comes back except to bring the check. Why should I tip someone like that 20%, when they are spending their time chatting with other wait persons or flirting with customers at another table.

 

Also, why should I fee compelled to tip at a self serve buffet where I seat myself, get my own salad, my own meal, my own dessert, etc. All the wait person does is refill my glass if I am lucky to see them again (I got my initial drink in the order line).  What entitles this person to a 20% tip when they did literally NOTHING.  I work my butt off in retail all day, serving customers who mostly make as much or more than I do and I get no tips.  These same wait persons would never even think of tipping someone else.  I know about working tables........a good person in a good establishment who offers exceptional service can easily pocket $300 a night.............on top of the base pay.  That is more than I make a day..............(and I guarantee they work no harder than I do.)

 

I will tip for good service what I feel is appropriate.......15-20% is the norm.........I have tipped more for a super waitperson who really excelled.  I have also left smaller tips for those who gave poor or no service. And I do not base the tip on my opionion of the meal.......if the food is not fixed properly I do not blame the waitperson........I send it back for correction. I base the waitperson tip on the service they actually provided.  I have also seen places that place the mandatory 15% tip on parties of 7 or more when one of the 7 was an infant who was not even dining.  This happened to me. And the waitperson service was the poorest I ever had. The food was mediocre, but her service was sorry......messed up on every ones order, never could get her to bring refills on drinks.......was too busy flirting with a couple of male customers several tables over. One of our 7 was a baby not even eating.  When the bill came, I marked out the 15% tip, paid in cash left on the table and left a $1 tip, just to make a point.  If you want or expect a tip........then earn it.

Monday, October 05, 2009 6:59:17 AM
I have been a server for the past 8 years. In tennessee servers are paid 2.13 per hour. I only survive only on tips. After I claim tips and they take taxes out of my 2.13 I don't receive a paycheck, just a zeroed out check stub. Most people don't tip on a percent anymore anyway. The usual tip expected (unless it's a table for one) is a min of $5 add 1 or 2 for each additional guest, and a couple of bucks if the kid at the table makes a huge mess. Usually about 7-10 bucks per table.  I make more when people have kids with them because of the above and beyond service i provide the kids. special fruit plates from the bar (kids love cherries), serving kids food first, providing small toys i have in my car for my own kids, and once playing duck duck goose and singing kids songs in a circle near the end of double over time in a football game. ( i work at a very relaxed family sports grill), The duck duck goose table gave me a $75 on a 150 check with 6 adults and 5 kids and a 5 hour visit to out establisment.  Did I expect a tip that large? Of course not! But now they are my regular costomers and i babysit their kids about once a month.  Tip on your service... not your total. Tip extra if you take up a table for more than an hour or so because most servers only get 3-4 table sections and when you sit thru a 4 hour football game, that server is losing out on turing your table 3 times and at 7-10 dollars a table that can be 20-30 buck lost. And keep in mind that if your steak is over cooked it's not your servers fault. It's the dill hole in the back making 12 bucks an hour. ..... and don't bother with tip jars. they are a scam by people who make a decent wage to steal your money.
Monday, October 05, 2009 6:59:43 AM
I don't like tip jars because the money in it is shared amongst all the employees regardless of if they even did anything that warranted being tipped.  I don't want my server/hairdresser/ect to have to share the tip I gave specifically to him/her with everybody else in the shop.  I always hated sharing my tips with the bartender on the nights when none of my tables ordered any drinks.

I hate the tip jar at Starbucks, especially the one at the drive-thru.  I realize someone made my coffee, but somebody at McDonalds makes my hamburger and I don't tip them.

Monday, October 05, 2009 7:04:25 AM
I refuse to give into those tip jars and it does not bother me in the least.  Had I seen the tip jar you referred to I would have left no tip and told the people why and found a new massage place.  I refuse to be intimidated and I do not feel bad about it.
1 - 10 of 245
To add a comment, pleasesign in