Wed, 10 Aug 22 08:00:00 +0000

You tip the hairdresser, but what about the mechanic? Expect to see more 'chip creep'

I would tip the person who cut my hair. The person mowing the lawn should do the same.

From car dealerships to fast-food giants like Subway and Domino's, industries where tipping has never been included in the cost are seeing gratuity options at card payment machines. We have more customers.

This phenomenon, called "chip creep," is an annoyance to some consumers. Takeout Pizza, Oil Change or Propane Tank Refill

Prices }

"Tipping is now more prevalent in more places, so even in places where tipping was not required before, it seems to be more common now," said an associate professor at the university. Simon Pek said. Gustafson Business School Victoria Tip Research Practice

Any Company, Automated Prompts — Psychologist It's never been easier to add what calls a "tip nudge" to a card payment machine and ask for a little extra money.

As customers carry less cash, businesses are moving away from traditional tip jars at the counter and adding tip options to card payment machines. is added. Here a tip jar is pictured at a cafe in Vancouver on April 30, 2019. (Jan Zeschky/CBC)

Ten years ago, payment machine chip functionality was an "afterthought." Point-of-sale terminals and other merchant providers of his services are important to most businesses, said Alex Povolotski, co-owner of PBH Canada.

Tipping is now automatically enabled in bars and restaurants, but demand from other businesses is increasing.

"Anyone can get it: bakers, taxi drivers, auto mechanics, supermarkets," says Povorotsky.

"It's definitely a reward."

Gilbert Mofleh is one of his mechanics. When he and his business partners bought and took over Carr's clinic in Ottawa earlier this year, the card machine was already chip-enabled, so he decided to leave it at that.

"As a mechanic, there are people who appreciate you fixing their car and give you a little tip, but that's not very common," he says Mofleh. . "When that happens, it's definitely a reward for doing a good job."

He says that few customers complain about tipping options.

"I don't want to add a tip to my $2,000 bill."

I tend to tip barbers, but not other types of workers. A woman receives a haircut in Magdeburg, Germany on March 1, 2021. Not their mechanic.

Mofre pondered the question for a moment.

"I dare say it's the expense," he said. “If you go to the hairdresser, you're going to spend $100, maybe $200, or less. ."

optional or expected.

The contradiction creeps into other service industries—most people give the bartender a dollar or he two to serve a can of beer, but the liquor store clerk what about

Private liquor stores in British Columbia and some privately owned beer establishments in Winnipeg may not offer tipping options at checkout, especially those that share licenses with hotels. It's not uncommon.

"For as long as I can remember, there's always been an option for chips," said Arlene Guillemette, the longtime general manager of Tudor's Liquor His store in Surrey, British Columbia. increase.

She says that although she sometimes receives negative reactions from customers who don't normally shop at private liquor stores, many regular customers are happy to participate.

} "There was a time when my machine broke down and I got a new one, and the tip option wasn't on. Customers were actually saying, 'Hey, where's the tip option?'

"So we put it back in."

Dissatisfied with the scope of business. Many businesses, including fast food companies, mechanics and liquor stores, have added tipping options to their payment machines, as seen in this photo taken in Regina on May 15, 2019. (Bryan Eneas/CBC)

Both Mofleh and Guillemette say customers shouldn't feel pressured to tip in their stores. Tipping is optional, not an expectation.

"The most important thing is to tip the server and the delivery driver," he says Mofleh. "It is neither necessary nor important to tip [employees] if they are not dependent on it."

Continued Increase in Tip Creep

from

Research is limited as to why so many companies and sectors are embracing chips, but Pek suggests the pandemic is likely a contributing factor.

"Essential There were moments when he wanted to show his appreciation [with a tip] to his workers," he said, with many businesses stopping cash due to hygiene concerns. I pointed out that

Another factor he thinks is inflation. Faced with rising costs, employers may see tipping as a way to meet workers' demands for higher wages without actually raising wages, he said.

"Still see low sticker prices. Continue to buy products and then add 10-20%. It can be frustrating, but people still end up doing it." It's often cheaper for companies than they have to pay those wages."

Gustav of the University of Victoria Simon Peck, an associate professor at Song Business School, said the "information leak" is likely to continue without public exposure. Discussion of tipping culture. (UVic Photo Services)

A few companies are going in the opposite direction, but are dropping hints in favor of higher wages, Peck said he expects tip creep to continue for a growing number of businesses unless there is a broader and more general discussion of where, when and why to tip. .

Povorodsky agrees that now is the time to reconsider. He personally prefers workers to be paid a living wage rather than relying on tips processed by POS terminals.

"I hope the tipping culture will change to tipping for really good service instead of the default, because tipping loses its meaning."