Wednesday, July 04, 2007

Not enough math ???

I've never been good at math and didn't understand that the multiplying by 1.2 gives you a total WITH the tip. That said, you STILL do NOT tip on the total bill - you tip on the bill BEFORE tax.

Obviously John Gruber doesn't know enough math and MAY need a "tip calulator" as Ryan Block suggests:

From Daring Fireball:

Helpful ‘Tip’ for Ryan Block ★

From page 3 of Engadget’s massive iPhone review, regarding the Calculator:

Missing from the iPhone, though, are dedicated tip and scientific / graphing calculators, or, perhaps more usefully, a tip calculator.

If you know enough math to even know what a scientific calculator is, why would you need a “dedicated tip calculator” mode? Take the total and multiply by 1.2 for a 20 percent tip.

I sent him a correction by email almost 14 hours ago, but the post remains unchanged.

If I take a sample bill from a Mexcican restaurant two days ago and multiply by 1.2 ... here's what I get:

X 1.2

(I did that math on an iPhone)

But that's not the only thing wrong with his equation. Here's the email I sent:

Just a note ...

Figuring the tip IS NOT taking the TOTAL bill and multiplying by 1.2 ... it's taking the totalBEFORE TAX and multiplying by 1.2 for a 20% tip with total included.

If you do it by the taxed total you are actually giving the waitress 2%-3% more.

Waitresses are given whatever amount they receive above the pretax total minus the tax.

Meaning; a server pays the tax total BACK OUT each night from her pocket. A lot of restaurants do this for the server, but it's a common mistake and a thing most people do not know that they are overpaying. Particulary when you mean to give a 15% tip if the service was bad or mediocre. Most times you are still leaving 17%+ if you leave a tip on the taxed total.



Anonymous said...

HUH??!! Actually, when you carry your own bank, you "pay" the restaurant back for the cash tickets you have in total and they pay you back for the tips you received in credit cards. Why shouldn't you tip on the tax as well? They have to pay tax as well. So what if you pay them 2 - 3% is good karma and in most cases you are only talking about another $1 or so. If you can afford to go out to eat, you can afford that.

FYT said...

You shouldn't tip on the tax because the server provided NO SERVICE for the tax. They were involved in the pretax total. Tipping on the taxed total gives the waitress a 22%+ tip!

In fact, I would argue that restaurant owners are not involved enough in tax hike protests. Prepared food taxes in cities are outrageous.

Affording a restaurant has no bearing on paying the proper amount owed.

"Good karma" is NOT acheived by being pound foolish.

After all, that "dollar" that you claim doesn't matter - could be donated to the Children's Fund that they always have at the movie theater - I'm going to dinner and a movie right - because I CAN afford it.

NOW there's "good karma".

I realize your wait staff will be pleased ... but pleasing them and loosing $100's of dollars a year is foolish.

FYT said...

I would also like to clarify that MANY wait staff THINK the tip comes on the taxed total as well, but never figure out their tips.

Most restaurants do NOT penalize the wait staff for credit card processing fees when figuring the tip.

Anonymous said...

Gruber's math isn't for the tip, it's for the total INCLUDING tip (and yes, it seems he's calculating the tip based on the grand total after tax is figured in). He's giving the math in the easiest possible way-- calculate not a new figure to add to your current total, but the ACTUAL amount to pay. A pretty straightforward approach.

FYT said...

But that still leaves additional math to do ... Thanks for the clarification. Sometimes I feel stupid when it comes to my math skills.

You MUST fill in the tip - never reply on the server to fill it in for you and certainly don't make them figure it out.

To do that you have subtract the tip from the total to figure it out- I'd rather just add it up.