What if you didn’t accept tips? Your clients would be happier, come more frequently and spread your name to all their family & friends. In turn, you would be happier, busier and have more time for yourself. Also, your customers would view you as a “health professional” like others in the health community such as personal trainers, physical therapists, chiropractors, acupuncturists, hypnotherapists (yes they made it on the list too). These professions don’t typically receive tips.
How would you make up the difference?
You’d simply make up the difference by raising your prices.
This restaurant did the following,
In lieu of tipping, menu prices at Park Kitchen have increased by 18% to 20% to maintain its profit margin – but in the end, customers will end up paying the same amount.
According to research by Michael Lynn, professor of consumer behavior and marketing at the Cornell University School of Hotel Administration, most people tip not based on service, but because they feel guilty and obliged. He also found that 53% of customers liked the idea of higher menu prices where tipping is not permitted.
It’s a mixed bag
Tipping is part of American culture. We like showing our gratitude with rewarding great service with a good tip or vice versa. But “no tipping” policies have been known to backfire. Especially in cases where people rely on tips or customers are known to tip really well. In cases like these, companies would have to step in to provide higher salaries to their employees to make up for the loss of revenue.
My personal experience
Let me know your thoughts around tipping.