Tipping Points

by Elaine Schwartz    •    Mar 3, 2010    •    728 Views

When tipping, we all have a tipping point.  It might sound reasonable to leave a dollar tip.  But, if a Tall Vanilla Latte costs $3.37, is a thirty percent tip too much?  Yes, says one NY Times blogger. On the other side, Starbucks baristas say that they earn more from tips than hourly pay.  After a California court decided that Starbucks’ shift supervisors could not share the tips pool, an appeals court reversed the decision.

Another way in which customers are asking themselves, “How much extra?” involves calories.  With New York City the first in 2008, municipalities around the nation are requiring that calorie information be posted.  Has it made a difference?  According to a Stanford Business school study, yes. 

The Economic Life

Starbucks’ customers and employees both are wearing their economic lenses. Whenever they consider the cost and benefit of something extra, they are thinking at the margin.  Thinking at the margin is thinking economically.



Leave a Reply

Your email address will not be published. Required fields are marked *

« »