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Monday, August 26, 2024

Just Tell Me What It Costs, Man

There are few things I agree with the Biden administration on, but the one thing I do agree with them about are getting rid of junk fees, which have even become a very big thing for restaurants to charge customers.

To me it's simply a way to raise prices without actually raising prices. And even what restaurant owners say about it seems to suggest that. "Customers might be discouraged if they see their menu items costing more."

Sure. But what's the difference if the menu says my hamburger costs $10 but when I get the bill it actually costs $12?

Many restaurant owners say the fees help them to better navigate higher wages, health care costs and other business-related expenses, and to keep menu prices down. But whether you charge more on the front end or the back end doesn't matter. Just because you call it a fee and not a price doesn't mean consumers are getting any benefit from it.

They are still ultimately paying more. And frankly, consumers are tired of it. It's akin to being nickeled and dimed, and often times the fees are hidden—such as resort fees some hotels charge for services that should be included in the price of your stay.

"It's to pay for fresh towels and for a maid to toss your sheets."

Well, last time I checked that's part of what my hotel stay is supposed to include. So, why charge me a fee for that? 

Of course, the hope is that consumers will just get used to these things. Like paying to check in a bag to fly somewhere. "It's just a part of the cost of flying," they hope consumers will say. But the thing is that once fees start, where do they end? 

What exactly is a convenience fee charged at a restaurant, for example? Oh wait. I didn't have to serve myself and therefore I enjoyed the convenience of having someone cook my food and serve it to me. That should come with a price on top of my menu cost.

Of course, that's the reason I go to a restaurant in the first place. I am already paying three times the cost of making the same meal at home. Now I have to pay even more?

What consumers want is transparency in pricing. We understand that the price we pay for things is directly related to whatever costs are incurred by the business. If it's got to be included in the price, so be it. Tacking on additional costs at the end of the bill serves no purpose except to add further shock to the entire cost of the meal.

On top of that, while restaurants claim the fees help workers, I think the opposite is true. We are already, as consumers, inundated with extreme tipping—many consumers are going to say, "If you add a fee I won't tip as much."

Granted, it's a bit of tit for tat argument when you think about it. But for me it's the semantics that matter most. Whether you charge me a fee or raise my price, the end result is the same. Tricking me into thinking my hamburger costs less because it says so on the menu, only to charge me more in the end, is moot.

I mean, think about it, what if I went to a gas station and pumped my gas and then they charged me a fee for the use of the pump?

What happens as well is that once you start adding one fee, suddenly you slowly start adding more. And before you know it, you're paying dishwasher fees for the clean plates and silverware, and maybe even a gas fee for keeping the griddle hot.

The fees simply serve no purpose, and I think getting rid of them is a good idea that best serves consumers interests, plain and simple. It's a commonsense idea. Tell me what something costs, and I will automatically assume that all costs of the business are built into what you charge me.

Just like it has always been. To keep the fees is to have the waiter coming to your table with a smirk as you dab your lips with your napkin, "Psst, by the way..."

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© 2024 Jim Bauer

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