Re:You Want 20% for Handing Me a Muffin? The Awkward Etiquet...
by GarrisonPrime on Thursday October 18, 2018 @04:15PM
(#18251743)
The public accepts prices more readily if they're broken up into smaller bits.
Sell a $4 muffin without tips, and you might lose business for being seen as "too expensive". Even if everyone always spent $4 anyway when you consider tips.
My favorite brand of fish fillets no longer come with packets of tartar sauce, because $8 for a box of breaded fish was seen as too expensive and they didn't sell well. So now the box is $6.25 and they have a display of little tartar sauce bottles for $1.75 next to the freezer. Sales more than tripled, or so claims my grocer.
I agree with you overall, and I don't think the psychological trick of dividing up the cost is a good reason to keep tipping going. Just mentioning it as a reason that seems to exist.
Sell a $4 muffin without tips, and you might lose business for being seen as "too expensive". Even if everyone always spent $4 anyway when you consider tips.
My favorite brand of fish fillets no longer come with packets of tartar sauce, because $8 for a box of breaded fish was seen as too expensive and they didn't sell well. So now the box is $6.25 and they have a display of little tartar sauce bottles for $1.75 next to the freezer. Sales more than tripled, or so claims my grocer.
I agree with you overall, and I don't think the psychological trick of dividing up the cost is a good reason to keep tipping going. Just mentioning it as a reason that seems to exist.