Can someone pls explain ''service charge'' to me?

[whitby_2773]

so i was booked in to a spa for a facial and a massage. cost of the facial - $160. cost of the massage - $110. not cheap - but ok, i can bite this and i''ve had a lot of facials in my time so was hardly shocked...

but then they called me this afternoon to confirm the appointment and said "the cost of the facial will be $192 and..." they didnt get any further because i said "why $192? your website says $160" "oh," says receptionist, "there''s a 16% service fee that goes to the provider and 4% which gets split between the other workers there." so i said - "a 20% tip, then." she said "no - a tip is voluntary and something extra. this is a service fee and mandatory." "so what do you recommend as a tip?" asks i. "we normally recommend 20%" says she. which of course sounds REMARKABLY to me like the 20% service fee...

so she wants to charge me $270 for the treatments, an extra $54 for a service charge($324), then also have me pay an extra $65 for a tip. coming in at a grand total of $389.

as some of you know, i come from australia, and we don''t have service fees like this, nor do we tip our aestheticians. but i''ve lived in NY for 7 years, and i tip along with the best of them. ok, fine, when in rome and so on and so on, the tax laws are different etcetc. but an extra 44%?? is it just me, or does this sound kinda ridiculous?

and just by the way, i cancelled the appointments. for $389 for 2 hours, i''ll go see a plastic surgeon.

and let me be clear - the aestheticians do NOT only get paid their service fee/tip. i asked. they do a full 40 hour week and are paid by the spa.

so - is this double dipping by the spa? what do you think?

 

[MichelleCarmen]

Does the website mention the service fee?

Okay, just re-read your post. You didn''t actually go in. Thank goodness. "Service Fee" sounds ridiculous. Totally double dipping! I''ve never had a facial though, so maybe this is normal at some salons?

 

[Shoopy]

Sometimes companies will have a service charge which is equivalent to the fee that is charged to them by credit card companies. AMEX is the most expensive which is why it isn''t excepted everywhere. They usually charge per transaction or per volume. This Spa is most likely passing on that liability to their customers. Lots of smaller companies do it.

 

[whitby_2773]

Date: 1/15/2010 6:18:41 PM
Author: MC
Does the website mention the service fee?


Okay, just re-read your post. You didn''t actually go in. Thank goodness. ''Service Fee'' sounds ridiculous. Totally double dipping! I''ve never had a facial though, so maybe this is normal at some salons?

and MC - tax is on top of THAT! the final price bears virtually no resemblance to what they advertise! at first i was kinda shocked, to be honest, then rather...

 

[radiantquest]

I would not use their services. That is absurd. That is like going to get a haircut that is $35. Then they say well the total cost is actuall $50 because the shampoo and conditioner have a cost and the scissors need sharpening regulary. I would seek the services elsewhere. I agree with tipping, in fact, if I must say, I am an excellent tipper. I would be ok with tipping, but not after all those extra charges. And besides that if those prices were on the website wouldn''t that be like "bait and switch" or false advertising?

 

[Shoopy]

Also, as a side note, *most* spas charge a service fee especially those in hotels. I don't think I've ever heard of one that did not. But that should be communicated on their website or brochoure

 

[MichelleCarmen]

I just checked the salon I go to (they do facials, etc.) along with hair cuts and there isn't any service charges/fees listed on their site either.

Maybe post a review of them on Yelp?

 

[whitby_2773]

fiery, amex's service fee is about 3%. this was 20! and it doesn't go to the spa - it goes to the girl who provides the service, as does the tip. as does her salary. if i pay her the $65 tip, plus 80% of the 20% service fee, that comes in at around $108 directly to the aesthetician - on TOP of what the spa is paying her. $54/hr on top of her normal hourly rate.

and radiant, i'm a good tipper, also. i'm a standard 20% tipper for most things, and i'll go above that for really outstanding service. but i just dont see how the service fee - which she TOLD me goes straight to the girl doing the facial - is different to a tip. like - if it looks like a tip and walks like a tip and smells like a tip...

 

[whitby_2773]

Date: 1/15/2010 6:29:49 PM
Author: MC
I just checked the salon I go to (they do facials, etc.) along with hair cuts and there isn''t any service charges/fees listed on their site either.


Maybe post a review of them on Yelp?

great idea, MC - yelp it is!

 

[elle_chris]

I've seen this "service charge" too and when i asked, i got a similar answer that it's split between the staff but it's not part of the tip. I think it's shady. You don't have to pay it btw.

 

[Maisie]

I don''t understand service charges. If they charge $60 for a service, then charge you some more for the service... Why not just put the price including the service charge... then not charge a service charge that nobody understands anyway?

 

[cara]

well in this case whitby asked what the service charge is for, and the explanation sounds awfully like a required tip. Which is fine if it is their policy and noted everywhere the mention their fees, but I would not add an *additional* tip on top of their required tip. That''s ridiculous.

It''d be one thing if the service charge was to recover credit card transaction costs (in which case it should be waived for cash or check payment and *smaller*) or some kind of hotel convenience fee (which is equally bogus not to include in the original price but whatever - its not $$$ going to directly to the staff). Then maybe one should tip as well as pay their stupid service charge. But not both in this instance.

Oh, and I am most familiar with ''service charge'' as the wording for the *required* tip in catering contracts for weddings. Its like a tip, but it is required and in the contract so you don''t have discretion over the amount. (Also, in the US, you pay tax on it as its basically part of the ''fee'' charged by the caterer and not an optional amount you may or may not choose to pay.) Just like when restaurants add the tip on large parties - that''s not really a tip anymore its a service charge.

 

[cara]

Date: 1/15/2010 6:39:30 PM
Author: elle_chris
I've seen this 'service charge' too and when i asked, i got a similar answer that it's split between the staff but it's not part of the tip. I think it's shady. You don't have to pay it btw.

This isn't clear to me - is the service charge optional? Seems if the spa discloses the fee up front and makes sure the customer is informed of it as the price due for the treatment, then you have to pay it. Obviously it should be on their website with the so-called rates, but whitby has been informed by the receptionist at least before her appointment. If the 20% service charge is just a guideline or recommended level then that doesn't sound materially different from a tip, except that they are being extra aggressive about informing you of what percentage they expect for their tip and calling a service charge.... Maybe trying to guilt you into tipping 20% by setting the expectation?

 

[Allison D.]

Sounds to me that by labelling it a "service fee", they can make what''s otherwise a tip compulsory.

No way, no how. Wouldn''t do it myself.

 

[elle_chris]

Cara- This was in two different restaurants. They didn''t inform us of any service charge but when we got the bill, there it was. When I asked what it was for (both times) I was told it gets divided between the staff (bus boys, bartender, etc) but NOT the waiter and the tip is seperate.
I was told I didn''t have to pay it and we didn''t. The whole thing is ridiculous to me. I know in the past that waiters/waitresses gave some of their tips to bus boys and bartenders. Guess they don''t anymore? And it''s just a way to milk more money out of customers.

 

[cara]

If they don''t tell you about the ''service charge'' first, then I agree that no you don''t have to pay it. But you do have to notice it on the bill and make a stink, and then stiff the bus boys of their money when you want to stiff the management...

I guess I have regularly seen more legal and up-front ''service charge'' or ''gratuity charges'' where it is listed in small type on the bottom of the menu that large parties are subject to 18% automatic service charge or whatnot. And it was pretty standard in catering contracts I looked at.

They are pretty annoying, though. Especially the fuel surcharges on airline tickets and various hotel fees not in the room price. Oh well!

 

[elle_chris]

Right, I know that some places have an up front gratutity charge added to large parties. I''ve also noticed it in touristy areas regardless of how many people in the group, but i know it''s a tip and not a seperate charge.
I didn''t mean to stiff the bus boys (feel bad now that you''ve mentioned it), but when I was in my 20''s and did some waiteressing, it was standard to give a % of your tips to the bus boys and bartenders.
I thought the places were just screwing us and had no intention of giving it to staff. Then again, times have changed, so who knows what that "service charge" is really for.

 

[Madam Bijoux]

Service charge = legal pickpocketing.

 

[gemgirl]

Date: 1/15/2010 6:23:50 PM
Author: radiantquest
I would not use their services. That is absurd. That is like going to get a haircut that is $35. Then they say well the total cost is actuall $50 because the shampoo and conditioner have a cost and the scissors need sharpening regulary. I would seek the services elsewhere. I agree with tipping, in fact, if I must say, I am an excellent tipper. I would be ok with tipping, but not after all those extra charges. And besides that if those prices were on the website wouldn''t that be like ''bait and switch'' or false advertising?

I wouldn''t go to a salon that had sneaky hidden fees. I''d much prefer to leave the woman who takes care of me the tip she deserves (and I usually leave a minimum 20% tip).

The salon I go to now on Long Island has no hidden fees. In fact there isn''t even extra tax added onto the cost of a haircut, facial or massage. It''s already included in the cost. When I lived in the city, I went to the largest, most famous salon in Brooklyn. They charged for the haircut and added to the bill was a charge for the specific shampoo and conditioner that I chose.

Have you ever bought concert tickets? What the heck is the ticket fee/convenience charge added to the ticket cost before the tax?

 

[April20]

I went to a spa over New Year''s weekend and they charged the exact same thing. 16% went to the technician and 4% went to the "service staff". My $200 massage became $240. I didn''t tip on top of it as they said the 16% was going directly to the technician and I felt I was spending enough already.

 

[Gailey]

Save your money up Whitby and head to the dermatologist office for dot c02 fractional laser treatment. Better than any facial even if you do need to save a few sheckels up first!

 

[whitby_2773]

Thank you all - this was very helpful!

I feel as tho so many services have become like the restaurant trade, which is different and can’t really be compared. Waiters are taxed (in NY, at least) as tho they are automatically tipped 15%, so if one doesn’t tip – or under tips - the wait staff, we’re effectively taking money out of their pocket.

But this is NOT true for spa staff. I also don’t know of any aesthetician who ONLY works for tips, as is the case for so many in the restaurant trade. So it’s a completely different ball game.

This spa has an online list of services, and in teensy tiny print in the bottom right hand corner it says that a 20% service charge will be added to all treatments. My question, tho, is – if I’m paying a 20% loading for a service…how is that different to a tip?

In my opinion, it isn’t. so normally I would simply do what april did, and think ‘ok, this is enough’, and leave it at that. However….!!

It was made very clear to me that a tip would be expected on top of the service charge. And it sort of starts to feel like what Madam Bijoux said – pickpocketing – legal, but in my opinion, not ethical.

Cara, I agree – there is a degree of ‘guilting’ one into paying these extra fees and ‘implied charges’. But I have to, given that the final amount would have been MORE THAN 50% over their listed price, I’m just not feeling that guilty!!

I’ve re-booked 2 similar treatments in Australia for a few days after I get home with a very nice salon there, and the sum total comes to $220AU for a one hour massage (instead of 50 minutes) and a 1.5 hour anti aging facial (instead of 60 minutes). They’re also having a special on where you get a complimentary hand or foot treatment (half an hour) for free with any facial. There’s no service charge and no tip required. And I win on the exchange rate too! So 3 hours instead of 1 hour 50 minutes for half the price….

I’m putting the left over money towards a diamond.

(or that dot CO2 treatment thingy Gailey mentioned…)

 

[VRBeauty]

I''m glad you cancelled that appointment, Whitby. Unless they made the extra service charge very clear up front, when you booked the appointment, It sounds like bait and switch to me!

(and no, teeny tiny CYA print at the bottom doesn''t count as making it very clear!)

 

[jewelerman]

im wondering if its legal for a company to advirtise a number/cost on their website and then add a charge with out instructing the customer first that they will be charged a required service charge above the advirtised price....sounds like bate and switch tactics to me!

 

[Cehrabehra]

come to china - I had a 2 hour spa pedicure and manicure (done exquisitely I might add) for $14 american and no tip or service charge required

 

[Miss Sparkly]

Date: 1/15/2010 6:23:50 PM
Author: radiantquest
I would not use their services. That is absurd. That is like going to get a haircut that is $35. Then they say well the total cost is actuall $50 because the shampoo and conditioner have a cost and the scissors need sharpening regulary. I would seek the services elsewhere. I agree with tipping, in fact, if I must say, I am an excellent tipper. I would be ok with tipping, but not after all those extra charges. And besides that if those prices were on the website wouldn''t that be like ''bait and switch'' or false advertising?

LOL! I had that happen

I went in for the salon "special" of 20 foils for $40 at a higher end salon. She asked if I wanted them toned and that it would only be $5, so I said yes. Then when I was at the shampoo bowl she rinsed my hair and asked if I wanted it shampood. I said of course, don''t you always shampoo the rest of the chemicals out! She then asked if I wanted it styled. I said no, just a quick bang dry would be fine.

The breakdown

$40 for foils
$15, NOT $5, for the toner because they let it sit on my hair instead of rinsing it through
$10 to shampoo my hair
$10 to blow dry my bangs

needless to say I was pissed

I will never go back and tell all my friends to never go there. Both the hair and facial places feel like borderline scams and I would not give business to either

 

[Bella_mezzo]

glad you cancelled whitby!

Hell no I wouldn''t pay it!!! I''m in NYC, but whether here or anywhere else, if you hit me with a significant service charge hat''s it. I''m not tipping on top of that. End of story.

I tip well (usually 20%) but it''s not happening if there''s a service charge. Plus, I try to avoid establishments that have lot of extra charges and hidden fees. Those are my pet peeves!!!

 

[whitby_2773]

cehrabehra - $14?? i''m on my way! i have a friend who grew up on India - she used to get gorgeous aroma therapy facials for $20. amazing!

bella - i''m in NY - westchester -home of the primped and pandered - so these kinds of treatments are just through the roof. it''s not just the cost that bugs me - it''s the attitude of the women, too. from massage to facial to shopping to party... ugh! and their daughters are worse. most women there will just pay those prices...not this little aussie! grrrrrr!

and sparkly - i hear ya! (and i love your vintage gold bands!)

 

[LilyKat]

In the UK, a service charge is added fairly often in restaurants. It''s intended to be instead of a tip. If someone tried to get me to tip in addition, it would not end well.

 

[Allison D.]

Date: 1/16/2010 2:29:19 PM
Author: whitby_2773

It was made very clear to me that a tip would be expected on top of the service charge.

I guess I''d have felt compelled to be equally clear that I didn''t intend to tip in instances where a 20% service charge already applies.