Ken Uchikura Newsletter Vol. 277 Tipping Culture
Mar
20
Tipping Culture
Why does the United States consider tipping customary? Logically, if we always expect tips, why not increase the price of goods and services to incorporate them? Some business owners may argue that adding the tip makes the price appear higher. Still, I believe including the tip is more conscientious because the customer still ultimately pays the same amount. In the same vein, they also apply the sale tax afterward. I have always believed that retailers should factor the sales tax and tip into the price from the outset.
In the 1950s, the tip percentage made up about 10% of the bill, but in the 1970s and 1980s, the tip percentage rose to 15%. Today, tipping anywhere between 15% to 25% has become the norm, including Washington state, where the average tip is about 18% or more.
People deem tipping necessary because servers often only earn minimum wage or less, so they rely on tips to supplement their income. This is because the minimum wage doesn’t just account for the actual wage, it also includes tips. Therefore, many argue tips are essential for minimum-wage workers to earn a living. However, I’m afraid I have to disagree with this notion. If companies paid fair wages from the start,
tipping wouldn’t be necessary.
Many restaurants now also include tips for takeout orders. Amazon Fresh and other companies are also interested in adding a tip for delivery. While I’m not required to tip when purchasing items as an Amazon Prime member, it seems unnecessary to tip for Amazon Fresh orders.
Even if it were, prices are already high because of inflation, and I find it hard to justify tipping on top of that. While the U.S. is a great country, I don’t appreciate attempts to market products by making them appear inexpensive, with small tips. I sincerely hope they will transparently display the full cost one day.
In the 1950s, the tip percentage made up about 10% of the bill, but in the 1970s and 1980s, the tip percentage rose to 15%. Today, tipping anywhere between 15% to 25% has become the norm, including Washington state, where the average tip is about 18% or more.
People deem tipping necessary because servers often only earn minimum wage or less, so they rely on tips to supplement their income. This is because the minimum wage doesn’t just account for the actual wage, it also includes tips. Therefore, many argue tips are essential for minimum-wage workers to earn a living. However, I’m afraid I have to disagree with this notion. If companies paid fair wages from the start,
tipping wouldn’t be necessary.
Many restaurants now also include tips for takeout orders. Amazon Fresh and other companies are also interested in adding a tip for delivery. While I’m not required to tip when purchasing items as an Amazon Prime member, it seems unnecessary to tip for Amazon Fresh orders.
Even if it were, prices are already high because of inflation, and I find it hard to justify tipping on top of that. While the U.S. is a great country, I don’t appreciate attempts to market products by making them appear inexpensive, with small tips. I sincerely hope they will transparently display the full cost one day.
Kenichi Uchikura
President / CEO
Pacific Software Publishing, Inc.
ken.uchikura@pspinc.com
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