when you get your bill at the end of the day, don't you ever wonder who the heck decided that you've to pay 10% service charge for services that you did/did not receive. WHY 10%.
and besides, where did all the 10% go; how much of it actually went into the pockets of those who provided the service? if we can't account for the figure then there's deadweight loss. i goggled and nah, no answers to these questions.
i'm trying to come up with sound economic reasoning behind this figure, but my gut feeling tells me 10 is just a convenient number. it's easy for us because it's already in our bill; but imagine the other side of the world calculating 6.123% off their total bill. but somehow i don't wish to accept the fact that our government authorities, who are ever so reliant on the invisible hand, said 'hey you people pay 10% ok, because they're doing so and it's easy to calculate.'.
plus, i dont see why services charges have to be ad valorem. why does a person have to pay $10(out of $100 bill) for almost identical services received by someone paying $1 for a $10 bill. i fail to see how it is justifiable to pay $9 more just because you ordered more food. if i'm making sense, i believe LDMR can be well extended to diminishing marginal service (or equivalent). then why are we paying the same dollar for each additional unit of services. one possible explanation is that, probably, we are paying part of the employees' wage. but wait a minute, don't you think the higher costs of running a restaurant (wages for more employees) should be already reflected in the price? wage should have been part of MC. correct me if i'm wrong...well, ok shall not go into theory of it for the benefit of those without economic training. but basically economic reasoning is what is lacking and i attempt to seek.
back to my point again. effectively, what sets restaurant and hawker apart is that in a restaurant, waiters are present to send you your orders whereas now most hawker reads self service. they both incur costs preparing the food, taking orders, cleaning...so now now, $9 for the "extra" services of sending more food to your table? apparently, i still pay 10% when i'm at a buffet.
not that i'm against the policy or fighting for tipping, otherwise i would have avoided restaurants altogether. just unresolved questions, going beyond what's fair and unfair, that require further investigation.
2 Comments:
hahahah u are quite bothered by it huh..go write a thesis!
i just thought it's interesting la. i mean why 10% and not any other number. currently still running through existing literature. if there's none then probably would just do some primary interviews for the fun of it and see how it goes...not rejecting it as a thesis idea but nah, i've some other more interesting stuff for my thesis. lol. random ideas.
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