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Why tipping is the best investment ever
Sometimes bribery isn't a bad word.
This post comes from Jim Wang at partner blog Bargaineering.
I’ve always found that tipping, by far, is the best investment you can ever make in almost any situation. Anyone who has ever bellied up to a bar knows that a dollar a drink is all it takes to get the speediest service on even the busiest of nights. Want a nicer hotel room? I’ll tell you about a risk-free technique you can use to score complimentary upgrades, if they’re available.
I’m not a master of etiquette, nor do I have extensive experience with the benefits of tipping, but I think the insights I am about to share can change, or reinforce, your thoughts on going above and beyond, financially.
Tipping creates a relationship
When you tip someone, you create a relationship with that service provider that puts you ahead of anyone else who hasn’t tipped. Whether it’s just a dollar at the bar, a few bucks for the attendant who brought your bags to the room, or a little bit more than 10% to 15% on the restaurant bill -- a tip puts you ahead.
I used to work as a banquet waiter and I would routinely work parties with a complimentary bar. Guests could go to the bar to grab a drink themselves, or their table’s waiter or waitress could get it on their behalf. That particular night (four- to five-hour party), I earned about $80 in tips -- the majority of which came from four people.
They weren’t the heaviest drinkers; they were simply the most generous. One guest gave me a $20 tip to start the night and while he never tipped again, I made sure to stop by his table every time I walked by. Another guest would ask for several drinks for his table, then tip me $5 each time. To this day I still remember one guest asking for five shots of sambuca and then giving me $10 for the trouble. In each case, I always made sure to go back to them and make sure they were taken care of.
On the flip side, we routinely go to a local pho restaurant that is incredibly affordable and remarkably quick. It’s so affordable, we always tip 20% or more simply because the bill is so low ($15 for dinner for two is about average). It’s to the point where many of the wait staff already know what we like to order, are extremely fast with service, and we can easily have lunch there in under half an hour (yes, while enjoying our food).
Relationships are rewarded
When you create that relationship, you are separated from the pack in the person’s mind. You’re not a friend, but you’re not a stranger either. So when it comes to picking which person to help out next, you always go to the person you’re more familiar with.
If someone is feeling especially charitable, they’re more likely to reward you for rewarding them. I do a fair bit of flying on Southwest Airlines and take advantage of their drink coupons, which they send along with their frequent-flier vouchers. Whenever I get a drink, I’ll hand over the voucher and a dollar tip. One time, the flight attendant, near the end of the flight, dropped off about 20 coupons as a thank-you (my wife was there, she can confirm this). The flight itself was five hours, we had at most three drinks apiece, so we got 20 drink vouchers for $6. I can’t think of a better return on investment.
Bribery isn’t a bad word
Finally, let’s not ignore the fact that what’s really happening is that you’re bribing someone to give you favorable treatment. Everyone who leaves a tip knows that it is both a reward and a teaser for the next time. Custom dictates 10% to 15% on a bill, but you leave 20% for great service from someone you like or someone you know.
You do that because you know you’ll be back and that the 20% is an investment on your next visit. You’ll get great service the next time you visit because you’ve rewarded great service in the past. I know that even at the end of the party, when I was exhausted and didn’t want to carry over a round of beers, I’d do it because a guest was particularly nice and generous to me (both are important).
That’s why “palming” a twenty to a gatekeeper can be so valuable. If you want a nicer hotel room, give the $20 trick a try. The $20 trick is used in a hotel where you put a $20 bill, folded inconspicuously, underneath your confirmation credit card as you slide it over to the front desk clerk. While you do this, ask if a complimentary upgrade is available. Usually, not always, your $20 is returned if no upgrades are available. On some occasions, they will keep the $20 even if there are no upgrades. Tipping doesn’t always result in a win, but more often than not it does.
If you think $20 for a room upgrade seems cheap, Tom Chiarella wrote in Esquire about “The $20 Theory of the Universe.” Tom goes traveling and, armed with a few twenties, finds out what he can get for it. He gets car detailing on the cheap, an upgraded seat (by paying another customer, not the airline), and a few other more unbelievable $20 buys. It’s a pretty entertaining read (along with “75 skills every man should master,” which I think is an even better article by Chiarella).
Hopefully I’ve either convinced you or reinforced the idea that tipping is a very good thing, and how a little can go a long way. What I’d like to learn from you is whether you have any tipping secrets or techniques that have worked well for you.
Related reading at Bargaineering:
I think it is all about economics, unfortunately for people in the service industry. I hate going to a restaurant anymore, as it has gotten so expensive. Now you cannot eat out without it easily costing $50 or more for two people (usually much higher), a twenty percent tip brings that to $60. I feel sorry for all of you that depend on this income for your livelihood, but in all honesty with our economic situation, this is an extravagance we can do without. We have taken to eating at home more often, or when going out doing more fast food (gasp) or counter service.
I think that the food service industry as a whole will have to figure out a way to make this more affordable...or not getting a big enough tip will be the least of your worries.
Exceptional Service 20%
Good service 10-15 %
Bad Service 0% or a penny on the table to get the point accross
What I have seen in the past couple of years is that is people expect this:
Exceptional Service 25%
Good Sevice 20%
Just doing your job good or bad 10-15%
Now I really don't have a problem with the changes in the first two but I have a real problem with the last one...I absoulutely refuse to pay anything for less than good service.......but people absoulutely expect you to pay it...
God help you if you refuse to pay when you have bad service with a party of 6 or more and get thrown jail because you refused to pay.....
My wife will tell you I am more than generous when it come time to pay the bill....heck I give the high schoold kids at Sonic a dollar tip for a dollar drink....and like some of you if for some reason I receive a discount I usually give that discount to my server in addition to the regular tip....But just don't get all jack up and out of balance when I flat refuse to pay for bad service or just because the server thinks they should get paid because they served me.
Md12516 - Okay so I have to agree with what others have already said...you obviously have not worked in the food industry and had to rely on your efforts and the generosity of others, to make your living. I have you typed as the customer who doesn't say "thank you" when receiving their food, bill, beverage, or what not and who thinks you are entitled to EVERYTHING your server is doing for you. Though people serve your food, they are NOT your servant, so maybe keep that in mind when eating out next time.
On that note, I worked as a waitress for several years while going to college, and I think TCBlue72 made SEVERAL GREAT references that people who haven't worked in the food industry don't understand when it comes to pay...So this too, goes out to you, Md12516 - we don't or didn't have "steady" paychecks like you apparently have always had...if it's a slow night, there are 5 servers and only 20 customer's (so 4 tables a piece), you do the math....that's not very much $$ on one night and it's sure is hard to pay bills when someone who is extrememly tight (*clears throat* YOU) only tips 10% when you've probably had us busting our asses to begin with...So say each of those 4 tables, tips $5.00 - that's only $20.00 on top of the $2.96/hr wage...and 5 hours were worked...that's only $34 and some change WITHOUT tax deductions, bus boys, bartenders, etc....
So maybe next time when you have the "I'm better than you because you're serving my food" attitude, think about what that person may be trying to pay for...school, kids, home....the same things you are paying for too and then put yourself in their position, if that's possible...I'd say if you had to work a little harder for your money, you'd be more apt to be a little more compassionate to those who do.
I forgot to say... waiters also tip the bartenders who make the drinks for their tables, as well as the busboys/girls who clear and reset the tables. All of that comes out of the tips the servers make. So if a waiter makes $20.00, around $4.00 of that goes to the bar and another $2.00 (or more) goes to the bussers, which leaves the server with around $14.00, which they are then taxed on.
* * *
I'm not saying waiters don't make a profit, but it's entirely dependent on them doing their best and having people appreciate it in a monetary fashion. Here in the U.S., in any case.
* * *
As someone said earlier, tipping is considered insulting in many parts of Europe, but the fact is that outside of the United States, people in food service actually receive a living wage and AREN'T reliant upon tips. Considering your attitude toward these hardworking people, perhaps you'd fit in better across the pond.
Md12516~ it's been many years since I've worked as either a waiter or bartender, but I'm still in the food service industry, as a chef now. And speaking to your assertion that a server's wage/taxes are between the server and their employer, I have to say that it's clear you've not worked in that field.
* * *
The way it works is that servers 'technically' are paid minimum wage. HOWEVER, in truth, the federal and state governments automatically deduct what is referred to as a 'tip credit' which reduces the actual hourly wage to around... I think it's something like $2.96 per hour.
* * *
Now, you're probably thinking that's fair, but the truth of the matter is that in addition to this 'tip credit' reduction, waiters and bartenders are required by law to declare AT LEAST 8% of their total sales as tips. These are then deducted from that $2.96 (ish) an hour.
* * *
What this means is that even if the server makes only 5% of their total sales in tips, they still MUST CLAIM the full 8%. If their tips are in the form of additions to credit card bills, and the total of those tips equals more than 8%, they must declare the full amount. This is then deducted from that $2.96 or so per hour.
* * *
I waited tables and worked behind bars for years, both before and during Culinary school. In all that time, I only received a handful of paychecks that said any amount above $0.00 due to tip deductions.
* * *
Waiters and bartenders work for tips. That's the long and short of it. And many customers treat them like personal slaves, keeping the servers running back and forth constantly. Food service isn't like working retail or sitting at a desk or any other job. Servers and bartenders rightly expect that they will make money based upon their effort.
* * *
I no longer work front of house, as I said above. I'm not reliant upon tips in order to pay my bills or tuition or transportation costs. That said...? I expect great service. I PLAN for great service. Meaning I don't even go out to a restaurant or a bar unless I can afford to show my appreciation.
* * *
If the service I receive is sub-par, then I don't tip as much and sometimes will even have a quiet word with the server, explaining why and what it was that I felt could have been done better. But I'm always prepared to tip well. That you're not only tells me that I wouldn't particularly want you in any establishment of mine.
Md12516, that is exactly the attitude that will give you poor service at a restaurant. Most servers do enjoy their job to a point, but when they have to serve a customer who feels ENTITLED to everything they have, they usually get a little fed up. You can bet, next time that server will remember you and make sure you wait a little longer.
Servers rely on tips as a very large part of their income. This is part of your bill, not matter what the actual check says. This pays their rent, their car, and anything else they may have. Quite a few servers I know, myself included when I worked as a waitress, are working their way through college. That money pays their tuition. So no, the wage is not between the server and their employer. That wage is between the server and the customer. If you don't have at LEAST 15% to tip, as this is the minimum that should ever be tipped, please don't go to a restaurant.
As a human being and as a person, I am deeply offended by vagueries and vulgarities of the base topics of monies.
Regardless, it is one of obviously many opinions.
Let me begin with some stories of my recent experience and move to more distant ones that I now can only vaguely remember.
At an establishment I sometimes frequent, I recently went to one of the bartenders, and, having misplaced my wallet recieved complimentary drinks with no tip asked, encouraged, or expected. In gratitude I gave as generously as my meager funds are of allowance in return for his earlier understanding.
Hopefully, I returned and made up for his kindness in fold.
As an ex-taxicab driver, I quickly became sullied by the demaning behaviors of my fellow drivers, and disgusted by having to evidence any greediness on my part for expecting further recompense than that listed on the meter for an honest ride. I soon became aware, that for those not accustomed to tipping not only didn't require lectures, but the mere inconvenience of any comment or behavior to signify it was expected and appreciated, became unappreciated and unexpectedly unwanted moreso by myself than the unfortunate non-tipping passenger(s). This in turn led to the discovery that accepting payment, weather tipped or not, a simple sincere thank you might not perhaps lead to a tip, but more than once became recuperated on other occasions, perhaps from different people. Example: waiting in the **** for my turn at the next ride, a dismayed bell person went from cab to cab until he arrived at mine. The question was "would I be willing to take a couple accross the street." Bored and uncaring of of my position waiting, I said sure. I drove the couple in question accross the street, expecting very little and not wanting to exaggerate my own importance. To cover the tab for a few dollars ride, I recieved a fifty and several explanations and apologies.
This brings me to my last point: vacationing in Paris, I felt extremely gratified to have a simply delicious meal. I gave generously as I saw fit in accordance with a rough accountancy paired with the excellence delivered. After taking the check, the waiter returned in an outrage-am I implying that he cannot afford to live on his meager wages, that he cannot keep his wife clothed nor his children fed?!?!?! This eventually led to another disscussion and so forth; the remedy was achieved when I offered to take the money back and he suddenly realized it was meant as an honor signifying my pleasure with the food and service rather than an insult.
One thing I must stress to all, on another occasion, even less pleasant, do not make the mistake of refering to the waiter as Garcon, like in the movies. Garcon (pronounced gar-son) apparently means "boy." That was a bit of a sticky wicket.
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I agree with the article for the most part, but for myself, I have worked in the restaurant field, so I know how it feels when you have worked your behind off and not gotten a tip or not much of one, I always overtip, not for the investment just because i've been there. My husband and i go to a restaurant here and our waiter(we seem to the same nice guy everytime) he routinely gives us his employee discount, calls uncle and aunt, so we give back what the price would have been plus his tip. He gets more that way, its fun! NO were not rich!

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