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Business Unplugged™
This blog features Carol Roth's tough love on business and entrepreneurship, as well as insights from Carol's community of contributors.

The Downside of the Tip Jar

Written By: Catherine Morgan | Comments Off on The Downside of the Tip Jar

coffee shopCarol’s latest post on is something most of us have experienced almost daily: the tip jar near the cash register.

Do you like it? Hate it? Most people have an opinion on it. In “Small Businesses That Encourage Tipping Are Killing Their Brand,” Carol shares her thoughts on why you might want to remove that jar or box pronto.

 “Tipping is a polarizing subject. Some people love to tip and others don’t love to tip. However, there has been a trend in putting tipping front and center in a number of environments, from retail to online delivery.

I contend that as a small business, you shouldn’t actively encourage tipping. Here’s why…

It screams “I don’t pay my employees enough.”

A tip used to be something that a customer gave to the person providing a service for going above and beyond the expected level of service. Somehow, that has morphed into a supplement for employees that don’t make a lot of money.

As a business, it behooves you to pay your employees well — at least well enough to keep them happy and doing a good job for your customers. It shouldn’t be your customers’ burden to ensure that your employees are making enough money and your customers shouldn’t feel like you are being cheap either. Neither scenario is good for your brand or business.

It looks low-end.

Speaking of branding, having a tip box at the register just looks cheap. Regardless of what vibe you are setting out to create, “cheap” should never be a part of it.”

You can read the rest of the post here.

Article written by
Catherine Morgan is the founder of Point A to Point B Transitions Inc., a virtual provider of coaching services to individuals who are in business or career transition. She specializes in helping entrepreneurs transition to corporate jobs they love. Catherine is the author of the eBook Re-Launch You: Discovering Your Point B and Embracing Possibility. An experienced independent consultant who was employed by three of the former Big Five consulting firms, Catherine speaks frequently on topics related to career transition, small business, productivity, and mental health. She doesn’t take herself seriously, but takes her subject matter very seriously.