Ralph: Hey listeners.
Do you ever feel like tipping has gotten completely out of control these days?
Like everywhere you go, you're expected to add 15.
20 or even a 25% tip on top of your bill.
It seems like tip creep is real and TIPFLATION is running rampant.
that's what we're going to talk about on today's show.
Welcome to our wacky and wild Wednesday show.
I'm so glad you chose to join us.
I just want to thank you for listening and supporting the program.
Well speaking of tipping.
I had a bit of an issue this morning.
Every morning I get up and do my morning exercise.
I do.
What's called an inversion table.
Helps with my back.
Well, this morning I didn't check the strap and my inversion table.
Went almost completely vertical.
And needless to say it was a little bit of a scary effort, but I was able to right myself.
So coming to you this morning from the Estep Farm at the Saggio Accounting studio . I've got myself back up in the correct direction.
So let me put my podcaster hat and put down those overalls and adding machine, and let's get into some financial wisdom from a Christian perspective.
In today's episode, as I talked about, we're going to dive into the topic of out of control tipping.
We're going to talk about what's causing it, how it impacts your finances.
And most importantly, what you can do about it as a savvy Christian consumer
buckle up, because this is sure to be an interesting conversation.
And before we get started, I want to remind you to subscribe to the show and join our email list.
You do that at askralphpodcast.com . So you don't miss tomorrow's show.
Tomorrow, we're going to be talking about something.
A listener asked me the other day, and that is how long should I keep tax and other important records Ralph?.
So tomorrow's episode is going to be all about what records to keep and how long you should keep them.
So let's start with today's Bible verse Proverbs chapter 11, verse one says dishonest scales.
Are an abomination to the Lord, but an accurate weight is his delight.
as Christians, God calls us to live with integrity and honesty in all areas of our life, including how we handle money and business transactions.
So when tipping gets out of hand, it can start to feel dishonest and become a burden.
So today we're going to explore whether tip creep has gone too far and how we can respond to it in a way that honors God.
So that's what we're going to talk about on today's show.
So let's first define what I use the word tip inflation.
tip inflation or tip creep refers to the phenomenon of tip steadily increasing over time.
I see this every time I go out anywhere.
What used to be considered a standard 15% restaurant tip is now creeping towards 20 and 25% as a new normal.
The other night, my wife and I were out to dinner and we noticed on the screen, we want to pay it actually started at 22% and went up to 30%
and tipping is expanding too.
We're now prompted to be tipping on carry out orders.
Coffee shops, Airbnbs ride shares and even more places.
I've even seen some technicians come out to my house or office to do work.
And they had a place to put a tip line when they took my credit card.
Now don't get me wrong.
I'm not against tipping in general.
My son's a barber.
He lives on tips.
I think choosing to tip can be a great way to honor hard work and express gratitude.
But I want to highlight three concerns.
I see with tip inflation.
And first this one is the big one.
It's unpredictable.
I never know what the tip amount is supposed to be, and it creates stress and confusion.
I hate fumbling with the receipt and calculator after a meal, trying to figure out an appropriate tip amount.
And secondarily it's involuntary.
Tipping used to feel like a bonus for great service, but now it feels more like a fee required to pay regardless of service quality, and psychologically that changes things.
If it's not voluntary, if it's not something you do out of joy.
To reward a good server or reward a good service.
I'm telling you folks, it feels very involuntary.
And third it's unfair servers.
Shouldn't have to rely on whims of customers to earn fair wages.
That's just the truth.
And as a customer, I don't think it's my job to directly supplement a server's income.
That should be on the employer.
My wife and I went to Germany this past year.
And it was a funny situation.
one of the first nights we went to a restaurant, happened to be an American style restaurant.
We got to the end of the meal and they presented the bill and they said, okay, here's your bill?
And I gave him the credit card.
And then they came back out.
And I put the tip on there.
Like I would usually put, and they didn't say a word to me.
the next night we went to an Italian restaurant there in Munich.
And when I went to pay the bill, the owner said, oh, no, no, no, no, no.
We don't tip here in this country.
If you want to give them 20 or 30 cents, that's fine.
He says, well, we pay a fair wage.
So it was interesting.
In light of these concerns, let's talk about what's driving tip creep.
And I think there seem to be a few key factors.
And the first one is this.
There is a genuine desire to be generous, especially after difficulty during those pandemic years for many service industry workers.
That's very understandable.
A lot of people had tough times during the pandemic in the service industry.
And second it's peer pressure.
No one wants to be viewed as cheaper stingy by tipping, less than what's now considered normal.
The problem is what's normal now, and that peer pressure is really strong
and third.
Companies offloading labor cost on the consumers under the guise of tipping.
What do I mean by that?
for example, some coffee shops now ask for tips on simple orders.
When historically baristas were paid a standard hourly wage.
That's a thing that's been a change.
And we, as the consumers are having those offloaded labor costs put on the us.
So the question is what can we, as Christians do in response?
How can we walk this fine line between generosity and enabling unfair practices?
I've got a few suggestions.
These are my ideas of what you can do.
And number one is educate yourself on reasonable tipping norms.
Instead of blindly following ever increasing trends.
There are resources out there like Emily post.com that can provide tipping guidelines.
Now, again, some of these are really subjective because it seems to be changing on a daily basis.
Number two, consider tipping a percentage based on the server's wage, not just the total bill.
Servers in some states with higher minimum wages may not rely as much on tips.
one of the things we've seen in the economy is the people in California, their minimum wage, I think for restaurants is now almost $20 an hour.
So do they really need tips?
And number three, if you can have gracious conversations with restaurant managers about fair compensation for staff.
So the burden isn't solely on customers.
Now this might be a bit of a big ask.
But I think it's a reasonable conversation to have
And number four.
Avoid peer pressure to overtip.
Like I said, when we were presented that bill at the restaurant the other night, and I started off with 22% and then it went to 25 and 30, then it said other.
the peer pressure was pretty strong on that, that they want you to hit at least at 22%, but you got to be willing to go against the grain of tip creep, inflation.
It's just something you need to do.
And number five, when possible patronize, no tipping establishments that build fair wages into their business model.
There are some restaurants out there that actually do this.
Like I said, we found that in Germany when we were traveling in Munich, And in Berlin.
Number six, contact your legislators in support of measures that require employers to pay reasonable wages.
This makes tips truly optional again, and that's what they should be.
Now on a side note, some of you may be thinking.
But what if I don't tip the new higher amounts and get bad service next time?
That's a legitimate question.
Actually, here in Middletown Delaware, there was a story on Facebook a month or two ago about a server who actually chased a customer out the door and into the parking lot, complaining about how badly they tipped on that particular meal.
Now, I don't think that's the right way to handle it.
So this concern is understandable.
So here's a few thoughts about how to avoid that stigma.
First, remember this, your worth and identity are in Christ, not the opinion of others.
So you got to stand confidently in that.
If you feel like you've tipped a fair amount based on what you received, then stand by that your worth is not identified by them, but it's identified in Christ.
And secondly, graciously, explain your position if asked.
If I was chased down in a parking lot by a server who thought I didn't tip them enough, that I would have a calm discussion with them.
Most servers will understand your desire, not to inflate tipping norms.
And third, if this service is chronically bad in an establishment, then yes, it's fair to not go back or tip at those higher amounts.
If the service is terrible, no one is making you give a bad tip.
But try to discern what's occasional bad service versus systemic issues.
For example, if you go into a restaurant on a Friday night and it's busy in that restaurant, then you have to expect that service might be a little diminished.
But if you go on a Tuesday night, maybe it'll be better.
My hope is these tips empower you to make informed Christ centered decisions when tipping and don't tip over.
Like I did.
We don't need to just go along with tip inflation or react self righteously.
As believers we can thoughtfully take the middle road, generously giving what we can while also advocating for fair ethical business practices,
In closing.
I got a question for you, which of these actions steps resonates most with you today?
How may God be calling you to apply it.
Please visit our website at askralphpodcast.com to share your thoughts and start a discussion and learn more.
I truly pray.
This discussion has been insightful for you.
Tipping may feel trivial sometimes, but how we handle money reveals much about our hearts.
My prayers that like Christ, we learn to use resources, generously and fairly for the glory of God alone.
Now, before we wrap up, I want to remind all of our listeners to visit our podcast page.
You do that, as I said, at askralphpodcast.com there you can leave a review, share your thoughts, or even send a message.
Tell us about those tipping experience that your seeing.
And maybe we'll have another review of those things on the show.
While you're on the website, make sure you join our email list so we can send you our daily email with what's going on with the show.
You can also schedule a consultation if you've got any specific financial topics to discuss.
If you know, someone who also feels it, tips have gotten out of control.
Do me a favor and share this episode with them and share the program.
Maybe they too have some opinions that we can share with others.
So let's do a bit of a recap.
In this episode, we dove into the timely topic of out of control tipping practices and what I call TIPFLATION.
We defined tip inflation and looked at three concerns, the unpredictability, the involuntariness and unfairness that can arise.
We explored factors driving the trend, like genuine generosity.
Peer pressure And companies unfairly offloading labor costs to consumers under the guise of tipping.
Most importantly, though, we offered some practical tips for Christians to navigate these challenges, with wisdom.
With discernment and grace.
Things like educating ourselves on reasonable norms, tipping based on a server's wage, Giving fair wages ourselves.
as business owners and advocating for positive change, our faith calls us to be generous and ethical in all areas of our life, including finances and when it comes to tipping, we can strike that important balance.
I hope this discussion has equipped you to do just that.
please visit again, our podcast site that's at askralphpodcast.com to continue the conversation and get more savvy tips.
And as I always say, stay financially savvy, stay wise, and God bless you today.