Sharing Daily Discoveries About Personal Finance And Business Topics

Business Tactic of A Very Expensive Lowest Option

I was reading an interesting article today and actually seen it myself recently where when it comes to paying for a restaurant meal at the end often you are given a portable machine to enter in your card. During the transaction you are given three option percentage options as to what to tip the business. Apparently some business list the three options as very high. The three initial options are 25%, 30% and 35%.

That is kind of ridiculous I thought and makes me think how many people probably would still just click one of those numbers as opposed to pressing the enter a manual amount button. Psychologically not clicking one of those figures probably makes the recipient feel cheap in many ways. Would you think this is okay for a business to do as technically you still have the option to enter whatever you want?

I suppose from a business point of view if that makes them more money technically they should keep doing it. It makes me think of even simple things such as menu prices on whether or not strategically one should just make everything high where even the cheapest item is expensive to make more money. I just know for myself I wouldn’t return as it feels like price manipulation in some ways where they aren’t focused on giving people value but instead trying to take as much money they can.

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