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> An included tip is called a commission. Nope. It's called having a standard job, with standard pay. It's not sales, it's customer service. They're differe

> An included tip is called a commission. Nope. It's called having a standard job, with standard pay. It's not sales, it's customer service. They're different things. And the rest of the world does it fairly well, with far better outcomes than the US system.

mulmen 3y ago
How is compensation based on the total price functionally different than a commission? The only time I got paid per interaction with a customer it was called commission. The rest was base pay just for being there doing my job or bonus for meeting some goal in aggregate. The way the “rest of the world” does it is exactly what I described. They just charge enough to pay the employees an acceptable wage as the base rate.
- justinclift 3y ago
  > The only time I got paid per interaction with a customer it was called commission. Sounds like you were being taken advantage of. That's without knowing the details of the situation though. :(
  - mulmen 3y ago
    Weird conclusion to draw in the absence of information but ok. I was selling TVs and lawn mowers at Sears. I had a base hourly rate then received commission for the items I sold. These were called commissions because they were an incentive created by the company, not the customer. I received very few (but not zero, think “carried item to the customer’s car”) tips from customers, which are not commissions because they are customer driven incentives. Tips: optional and set by the customer. Typically unknown until after the interaction. Commission: pre-defined incentive for performing a specific action. Set by the company. Wages: pre-defined, but not a function of any specific action. By definition you can’t make tips part of wages. You can tell customers not to tip, increase prices, and pay employees commission, but that’s also not a tip. Or you can tell customers not to tip, increase prices, and increase wages but that’s also not a tip.
    - justinclift 3y ago
      > then received commission for the items I sold. That's sales, thus the commission. Front of house staff in a restaurant aren't doing sales as the majority of their activities. They're customer service. That's why it's not a commission.
      - mulmen 3y ago
        Is it your assertion that retail sales does not involve customer service? Do you tip receptionists? Do you believe food service does not involve sales? A tip is a gratuity. It comes from the customer as a thank you. A proportional incentive from the employer is called a commission.
        justinclift 3y ago
        sigh So, is it your assertion that front of house McDonalds staff should get a commission on their "sales" instead of being paid a better hourly wage?
        mulmen 3y ago
        No, of course not. They should be paid a reasonable wage for doing a job the same as everyone else. And it shouldn’t be called a “tip”, because it isn’t, because it doesn’t come at the customer’s discretion.

mulmen 3y ago

How is compensation based on the total price functionally different than a commission? The only time I got paid per interaction with a customer it was called commission. The rest was base pay just for being there doing my job or bonus for meeting some goal in aggregate. The way the “rest of the world” does it is exactly what I described. They just charge enough to pay the employees an acceptable wage as the base rate.

justinclift 3y ago
> The only time I got paid per interaction with a customer it was called commission. Sounds like you were being taken advantage of. That's without knowing the details of the situation though. :(
- mulmen 3y ago
  Weird conclusion to draw in the absence of information but ok. I was selling TVs and lawn mowers at Sears. I had a base hourly rate then received commission for the items I sold. These were called commissions because they were an incentive created by the company, not the customer. I received very few (but not zero, think “carried item to the customer’s car”) tips from customers, which are not commissions because they are customer driven incentives. Tips: optional and set by the customer. Typically unknown until after the interaction. Commission: pre-defined incentive for performing a specific action. Set by the company. Wages: pre-defined, but not a function of any specific action. By definition you can’t make tips part of wages. You can tell customers not to tip, increase prices, and pay employees commission, but that’s also not a tip. Or you can tell customers not to tip, increase prices, and increase wages but that’s also not a tip.
  - justinclift 3y ago
    > then received commission for the items I sold. That's sales, thus the commission. Front of house staff in a restaurant aren't doing sales as the majority of their activities. They're customer service. That's why it's not a commission.
    - mulmen 3y ago
      Is it your assertion that retail sales does not involve customer service? Do you tip receptionists? Do you believe food service does not involve sales? A tip is a gratuity. It comes from the customer as a thank you. A proportional incentive from the employer is called a commission.
      - justinclift 3y ago
        sigh So, is it your assertion that front of house McDonalds staff should get a commission on their "sales" instead of being paid a better hourly wage?
        mulmen 3y ago
        No, of course not. They should be paid a reasonable wage for doing a job the same as everyone else. And it shouldn’t be called a “tip”, because it isn’t, because it doesn’t come at the customer’s discretion.