Success Hint: Prize your Tip

Success Hint: Prize your Tip

Your tip tells you how happy you make your customers

 

You have two goals: increasing earnings and happy customers. Here is our success hint for you.

 

Increased earnings do not necessarily mean increased revenues. Your revenues are bound to the price of your service and are subject to tax. We advise that you focus on your overall income, instead. This makes up of both your revenue and additional monetary earnings, which are not tax accountable. 

 

Simply said and key to understand is that you earn more from your tip than from charging a higher price.

 

You earn 5, if a customer gave you a 5 tip.

You earn 4, if you asked a 5 higher price, given that you paid 20% VAT. If you also pay income tax at the year end, your earnings are even less than 4.

 

It is really obvious that the happiness of your customer drives your success. Therefore, our recommendation is that you focus on your quality and attention to detail. Do not overlook your tip or overhear what customers tell you. By the time they have left, you already know, if they are coming back. You want to make sure they do. And you want to make sure they tell their friends about you, too.