3 frequent tippers share why they tip even when service is poor and how much extra they typically leave

3 frequent tippers share why they tip even when service is poor and how much extra they typically leave

Tipping: How Customers Can Benefit Businesses and Employees

In recent years, the practice of tipping has become more prevalent in the United States, with an increasing number of businesses asking customers to leave a tip. While this has sparked some controversy and dissatisfaction among certain customers, tipping has proven to be beneficial for many businesses and their employees. By examining the stories of three dedicated tippers, we can gain insights into why they choose to tip generously and how their actions help maintain stable prices for all.

Ryan Farley, a 33-year-old lawncare worker from Austin, Texas, is a prime example of a customer who consistently leaves a tip, even for services that don’t require much “actual service.” Farley believes that his few extra dollars can make a difference in someone’s life. Having worked in retail and service jobs himself, he understands the challenges these roles entail. Therefore, he doesn’t mind tipping, regardless of the level of service provided. Farley typically tips between 15% and 20%, occasionally going as low as 10% for counter service or food takeout. His generosity not only supports the workers he tips but also helps businesses maintain stable prices for everyone.

According to a July Wall Street Journal article, 16% of small businesses surveyed now ask customers to tip, up from 6% in 2019¹. For businesses such as Dan Moreno’s appliance service in Miami, tipping has become a valuable component of employee compensation. Moreno started giving customers the option to tip his home-repair technicians three years ago. Today, approximately one-third of customers leave a tip, averaging between 10% and 20%. These tips add an average of $650 per year to his technicians’ salaries, allowing Moreno to avoid finding alternative ways to boost pay. As a business with slim profit margins, raising prices beyond the 18% increase since 2019 would be an impractical option for Moreno. By embracing tipping, Moreno is able to maintain his employees’ pay levels, and those customers who do tip contribute significantly to this effort.

While many customers choose not to tip, the contributions of those who do play a vital role in the stability of prices for services. Laurence Kotlikoff, an economics professor at Boston University, notes that businesses are hoping customers will be willing to pay more voluntarily, given the financial challenges they face². However, for this strategy to continue benefiting businesses like Moreno’s, there must be enough consistent tippers willing to provide the extra income.

Personal experiences in the service industry often motivate individuals to tip generously. Camille Rogers, a 25-year-old publicist from Manhattan, regularly tips whenever the option arises. Her three years of work within the hospitality, food service, and retail industries have given her a deep appreciation for the importance of tips. Despite living paycheck to paycheck, she willingly supports others with her extra income. Rogers tips at counter-service restaurants, coffee shops, and to rideshare drivers using various payment apps. Even in cases of poor service, she seeks alternative ways to address the issue instead of withholding a tip.

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KaLyn McCullough, a 24-year-old PR account executive from Hartford, Connecticut, also has a habit of tipping whenever possible. Her three years of experience as a restaurant server during college shaped her perspective on tipping. Having relied on tips for rent and other expenses, McCullough understands the value of these gratuities. She consistently tips at coffee shops and always leaves a tip when picking up takeout from restaurants. McCullough emphasizes that even though customers may view takeout as a self-service option, they are still paying for the convenience provided by the restaurant’s staff. When dining in, she typically tips between 25% and 35%, except for a rare instance when her server’s performance was exceptionally poor.

In conclusion, tipping, despite its divisive nature, has proven to be advantageous for businesses and employees alike. Dedicated tippers, such as Ryan Farley, Camille Rogers, and KaLyn McCullough, demonstrate how their generosity helps maintain stable prices and support workers in various industries. While some customers may choose not to tip, the contributions of those who do play a significant role in ensuring fair compensation for employees. Ultimately, tipping culture, with all its complexities, continues to shape the dynamics between customers, businesses, and workers in the United States.

• analysis
• Economy
• Tipping