Discount Tipping?

Our friend Liz absolutely loves the group buying discount site Groupon–I mean, who doesn’t love getting those daily deals full of huge savings in your inbox?! Liz was particularly thrilled to buy into a recent Groupon deal for over half off a hair cut and blow dry at her favorite salon.  Normally $85, the deal was ON for just $40!

On her way to the appointment, Liz read over the Groupon print out, and noticed there was a note on it suggesting you pay the tip on the FULL amount of the service, not the Groupon discount rate.  Liz was really put off by this – why should she tip on $85 for something she was paying $40 for?  After all, if the merchant was participating in Groupon, they shouldn’t really expect people to tip on the full price….or should they?

Liz’s best friend thought she was acting super cheap and of course should tip on the full amount.  However,  Liz held her ground.  If there is a promotion for a local store or service at a lesser rate to hook customers, shouldn’t the price be the price- even if it’s just that one time?

While Liz did tip 20% – it was 20% on $40…not $85.  What do you think of this hair-raising tale?  Is Liz cheap or frugal?  What would you do!?

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6 Responses to “Discount Tipping?”

  1. Madison says:

    This is a good question. My initial reaction was to say she was being cheap and should tip on the full price. After thinking about it more, I am leaning toward Liz being correct…it is a promotion.

  2. Cat says:

    The problem with that reasoning is that tips go to the stylist (or the waiter, or whatever), not the actual business or company. As such, you are effectively penalizing the employees of the company offering the promotion by tipping on the promo amount.

    Besides, you are saving so much anyway, can you really not spare the extra to treat your stylist well? If so, you shouldn’t go in the first place.

  3. Shaheen says:

    I actually agree with Liz. If there is a promotion, then she should tip on the price she is paying. Otherwise, there is not much of a deal for Liz. Also I think this entire concept of tipping is that people get it for good or extraordinary service not just because they do their job. Sorry but a lot of times, have had such mediocre service and have had to tip them generously just because its a fancy place/ salon.

  4. Aimee says:

    I think Liz is being very cheap. Just because you paid less for the service with a promotion doesnt mean the value of the service you recieve is reduced. Remember, the stylist spends as much time and care on the client who spent $85 as they do with the clients who come in with their $40 groupons. Why should they he penalized?

    Had Liz paid the typical $85 (which is sounds like she has previously), her total with a 20% tip would have been $102.

    With the Groupon and a 20% tip on the regular price, her total would have been 57%

    She could have not been so cheap and she still would have saved $45

  5. carol says:

    Liz was being cheap. She still received an $85 service, the employee put out the same amount of time and energy even though Liz only paid $40. Liz ended up screwing the employee. Not fair and extremely cheap!!

  6. Bonnie B Greene says:

    I don’t think Liz is being cheap. It is a discounted service and a one time thing. The company participating should have made accommodations for the employees to begin with; since this is a promotion and an effort to get more clients into the business. If the employee does an awesome job, then they will have gained a new client that will request them when they come back. At that point, they will get their regular tip based on a regular price. Just think how many more clients will be coming in because of the cheaper price. Therefore, more clients than usual and more tips than usual, even at a lower price. There is a good chance it will balance out. The end result is, it will bring in more clients who will willingly pay a higher price and tip now that they know it is worth it to them. If it is a promo, I tip based on what I pay, if someone is exceptionally talented I will give more. Under normal circumstances, I tip based on the service I receive. Sometimes over the 15-20% and sometimes nothing. I have gotten some BAD service too many times.

Any Thoughts?