Why do we tip??

Question

If someone types a memo with no mistakes should they be tipped? If the mailman delivers a package right to your front door should he be tipped? Why tip the pizza delivery man when I am already paying $2 for the delivery? Why should some get tipped for doing a good job, some tipped for just doing the job and some don't get any tips at all? So again... why do people tip?

Shouldn't it be fair for all? I'm just asking... why?

Answer 1

Tipping is actually a very good deal for the consumer. Tip income is factored into wages in almost all occupations where a tip might be expected. Employers can then adjust wages downward, which in turn allows prices to fall.

Let's pretend for a moment that waiters were suddenly never tipped. Waiters will then conclude that since they are now only being paid minimum wage (or sometimes far less), they will go get other jobs. Restaurant owners will then not be able to find people to work for them for so little pay (especially since you have to be 21 to serve alcohol), so they will be forced to raise their prices to afford higher wages for waiters since they can no longer rely on tips. Plus, the higher wages also require higher taxes for the employer, since payroll taxes are a percentage of wages. So now the item which was once on the menu for $10 + tax + tip is now $12.50 + tax, being carelessly served to you by waiters who no longer have to care what you think of them. The crappy waiters make as much as the good ones, so the good ones stop trying as hard since there's little or no reward for it. Overall service quality goes down while the out-of-pocket cost of going out to eat is higher than when everyone tipped 15-18%.

This phenomenon would not be limited to foodservice. All places that have employees who are tipped would do exactly the same thing as the example above, with the same results - lesser service, higher prices. Which is why tipping exists - it benefits everyone.

Answer 2

Well...we tip at restaurants because the servers/barstaff make 2.13 to 3 dollars an hour. This makes the price of food less. So you tip because you are getting the service from the waiter. They are filling up your drinks running your food, dirty plates, etc. When a person takes a job as a receptionist, they know how much they'll be making per hour. When a waiter works, he does his best to do his best every shift because he knows his performance determines how much he'll make that night.
The $2 you are charged for pizza delivery is pretty much attributed to the rising cost of gas in this country sorry to say. If you want to sit at home and let a poor college student bring a pizza to your door instead of going out to get it yourself, please, tip the poor kid. He needs the cash.

You have to tip at restaurants and the pizza guy, it's just general practice. It's how they earn their living. Waiters dont get a paycheck. Sometimes their paycheck is negative for the taxes they have to pay. All, I repeat, ALL of their money is from you, the customer. The receptionist and the mailman get a paycheck every week. That's why people tip. They're informed and they do the right thing...they pay for the services they have gotten.

Answer 3

This one comes down to the way businesses pay their employees in this country. The law considers certain professions/positions to be "tipped" positions. Employers are allowed to pay people in these positions far less than minimum wage. The thinking is that, since these employees receive the majority of their income from gratuities, the employer is off the hook.
Some positions that don't fit perfectly under this legal umbrella are still considered "tipped" positions and the salary reflects as much. While a server is paid $3.18/hour, your pizza delivery person may make $6.00/hr. That delivery person still relies on tips as a major part of their income.
It may be difficult to determine who should be tipped and who shouldn't be from time to time. Just remember, if someone is accustomed to receiving tips as part of their income, it's not your place to give them a pay cut.

Answer 4

I think we tip because it's become very common. People don't stop to think of why they do it, and why the employer doesn't just pay a decent wage and build that into the price of the service.