Many foreigners can’t figure out the tipping system in America. I actually like it. Every time I go to another country where tipping is not customary like it is here, I remember why I like it. It just makes customer service better. Going to a restaurant in the United States is by far a different experience from going to a restaurant in a European country, where the waiters are paid “a living wage” to use a Bernie Sanders phrase. The waiters, all too often, simply don’t care, and the service is sloppy and slow. Often the staff is unfriendly and sometimes even condescending.
When a significant portion of your income depends on how the customer feels taken care of, the quality of service goes up.
I believe in tipping, and I usually tip well, but only where the tip has an effect on the service I am getting. I do not believe I should be tipping when there is no direct relationship between the service and the tip.
For instance, I believe in tipping in the following service relationships:
- Waiters in restaurants – they cater to me, both in making me feel comfortable, providing good advice on the menu, bringing me the food and acting like they want me there. My tip will reward them in proportion to the service. It’s a true interaction.
- Staff at events – recently we went on a hot-air balloon ride. It takes a whole crew to get a balloon launched and landed safely. The staff works hard and they make the guests feel safe, comfortable, and enhance the experience.
- Shuttle drivers – from hotels, rental car companies, parking garages to airport terminals, etc. The drivers work hard, they carry my luggage, they drop me off and pick me up when I need them.
- Doormen – people who hail cars, check your luggage, coats, open your doors, help you in and out of cars.
- Food delivery people – the pizza man, or anyone bringing food to my house.
- Installers at my house – Recently we had a fan installed at my house. The installer worked had, cleaned up after himself, and I know he was just a laborer, working for a company. I gave him a generous tip.
I don’t tip in the following service relationships:
- Hotel housekeeping staff – this is controversial. Many people leave tips on the pillow for housekeepers. I do not, except when I am at a resort for multiple days or a week, and it’s the same housekeeper that cleans up for me day after day. When I spend one or two nights at a hotel, I never see the housekeeper, and I do not create a service relationship. The service is provided in advance according to expectations set. Whether I leave a tip at the end or not does not affect the service. It makes no sense to me.
- Owners or managers – If I am getting a service from a business owner, say a caterer, and the caterer is the boss, and I am already paying for that service, I do not think I should be expected to tip them.
- Tip jars at the coffee shop – The servers behind the counter work hard, yes, but what they do is pour a cup of overpriced coffee into a paper cup, put on a lid, and take my money. I don’t believe after paying two dollars for a cup of coffee I should put money into a jar on the counter. These people are doing the minimum necessary to give me my product. I don’t think a tip is appropriate. I ignore the jar.
- Tip jars anywhere – If someone just sells me something, there is no reason for a tip.
- Cab drivers – even though I do sometimes tip when I have to give cash to a cab driver, I never like it. They are driving me, for goodness sake. What’s so special. Now I don’t use cabs anymore, I use Uber, and yes, I usually don’t tip Uber drivers.
I am curious if my readers have input into this subject.
The Little Apple that Dreamed
Posted in Business, Commentaries, Cool People, Economy on August 2, 2018| Leave a Comment »
April 1, 1976 was the day I reported to military boot camp in Leipheim, Germany. I was a 19-year-old boy and the service was my first real job. No man ever forgets the day he goes into the military. I remember it fondly.
On April 1, 1976, that very same day, on the other side of the world, in a garage in Palo Alto, California, another boy, this one 20 years old, by the name of Steve Jobs, along with this engineer friend Steve Wozniak, founded Apple Computer.
Four years later the military discharged me, and I got ready to go to college, for math and computer science.
Four years later, on December 12, 1980, Apple launched its IPO, selling 4.6 million shares at $22 per share. The shares sold out almost immediately and the IPO generated more capital than any IPO since Ford Motor Company in 1956. Apple was worth $1.2 billion.
Then in 1997, Apple was on the brink of bankruptcy. Microsoft and its many partners in the personal-computer market were eating Apple’s lunch. Then they called back Steve Jobs.
Today, 42 years and 4 months later, exactly 15,554 days after that auspicious day of April 1, 1976, Apple became the first company in history to reach a market cap of $1 trillion. Nobody had ever reached that before. Exxon, which for decades was the most valuable company on the planet, is at $338 billion today, almost exactly a third of Apple’s value.
Congratulations, Apple. You are an inspiration to all entrepreneurs, and I must admit there have been many crossroads in my career and the life of my own company when I found myself asking: What would Apple do now?
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