A Pricing Solution to Rethink Tipping Etiquette

By

Jean-Manuel Izaret

Etiquette around tipping has shifted significantly. From tip jars to the tablet “swivel”, it’s become a subtle yet deeply ingrained part of American life, often accompanied by unconscious biases affecting how customers tip service workers. While it may appear to be a bias issue, it’s, in fact, a pricing problem. Businesses, by passing labor costs to consumers, create pricing confusion and workplace inequalities. Fortunately, those who set prices have the power to shape a fairer society. A transformative framework from BCG, The Strategic Pricing Hexagon, simplifies pricing, ensuring fair worker compensation and equitable customer prices. Say goodbye to tipping guilt and halt the swivel phenomenon. Learn more about the new book from BCG’s Pricing Practice: https://on.bcg.com/452833X