Quote:
Originally Posted by HockeyIlliterate
This line of reasoning makes very little sense to me.
Sure, the menu price for a hamburger may be $16, but when you add in the expected tip (let's go with 18% because the server was attentive and accurate with the order--or, more properly, doing their job correctly!), you are effectively already paying $18.88 for the hamburger anyway (or $19, with rounding for those who like only charge whole dollar amounts).
So are you really asking me if I would be prepared to pay $20 for a hamburger that I was effectively already paying about $19 for?
And that the only difference between those two prices is that, in the former, I don't have do this whole "what is the right tip amount so that I don't get judged negatively by the server and can still come back and eat here without worry" thought process at the end of the meal, and in the latter, I can just pay the menu price and eat in peace?
I don't see why anyone wouldn't go with the latter option.
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So, 2 points:
1- Don't forget to add tax to that. For your scenario in ON, you are paying $21 (rounded) for a $16 burger. Up that $16 to $20 on the menu and you are paying $23 (rounded). Just a couple of bucks, but that leads to......
2- Perception of cost. Why charge $15.99? Why not just say $16. What's one cent? Perception is everything. If one establishment suddenly increased prices by a lot I suspect many people would not go there. $4 is a 25% increase in our scenario. Who's not crossing the street for something less.
I don't think anybody sees it as "I was already paying $20 when I included a tip, why wouldn't I just pay $20 straight up". They see the burger they paid $16 for last week now going for $20.
Again, I am advocating tipping. I think it is a vile practice that brings out the worst in people.