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The Tipping Argument

by Pubby in Society, November 7, 2007

The newspaper companies are losing revenue to on-line readers. The first ones to suffer are the paper carries.

In this day and age when we work harder than ever, and carefully review all our expenses to be certain that our hard earned dollars are spent wisely, (to insure that our quality of life does not diminish), we often find ourselves a at quandary when time comes to reward those who work in the service industry. The question that arises each time the billing cycle comes around as to how much to tip is the subject of this paper, particularly where such practice pertains to the newspaper delivery service.

This question and many more have crossed our minds as long as we can remember. As a little boy I remember looking over the final bill we had incurred at a local restaurant, and could not help but to notice that the waiter received extra money from my father. When I asked him about it he explained to me that one “must always reward those who toil on jobs that make your life easier.” Of course he then went on to explain about the amount, and so on, and so forth.

Later on, as I pondered on the answer he had given gave me I realized that I never saw him give mother any money after supper, or after anything for that matter; “That”, he replied, “is because your mother and I share in all that we have, and contribute in-kind to each-others efforts. Rather than tipping we give one another gifts that show our appreciation”.

Years would go by before the practice would come back into my life when, as a teenager I would deliver papers at a High-rise building in Arlington Virginia. Early each morning I would ride my bike to the building, and with a key provided by the door man I would stop the elevator every other floor, while I walked the corridors and delivered the Washing Post to my customers.

In those days debit was non-existent, and credit payments were rare; most if not all of my customers paid by either check or cash, and since collections were done at the door, there was a feeling of having a personal relationship with all of my customers. Occasionally I would puncture a tire on my bike, or bent a wheel rim on a pothole I did not see, but other than that, expenses were low and much of the receipts, (other than the wholesale cost of the paper itself), were mine to keep; the icing on the cake were the tips, and the notes of encouragement I received with the payments. Not too bad for a fourteen year old.

Soon though, life would take its inevitable turns and I would begin dating. College and a real job would then follow, then marriage and parenthood, but though all of that I practiced the lesson I learned from dad; “Reward those who toil on jobs that make your life easier”. We all know from personal experience that when one recognizes the effort that someone puts out for good service, (as a waiter in a restaurant would), one will always be welcomed and subsequent visits become more pleasant.

There are many industries that provide a wide array of services to consumers, and while one would immediately recognize the waiter, the mailperson, and the waste collectors as work occupations one would always tip; other occupations have become convoluted if not forgotten as are those of the gas station attendant, the taxi driver and the paper delivery person.

Today in general, the cost of the product we receive might deter us from tipping, and thanks to the ease of the ever present plastic card we have removed the person behind the service, (as some one who no longer deserve our thanks); however, inspite of credit or debit, and the higher cost of gas, some of us still tip the gas station attendant. The mail person and the waste collectors earn today more than before, (and receive benefits to boot), yet we tip them because of the tradition behind the practice.

What then happened to the paper boy?

Funny you should ask! Over the years newspapers went more and more over into morning editions, children became more vulnerable to crime, and demands from the advertisers to cover wider areas pressured the newspapers into finding the most reliable means of delivery. In came the paper boy’s parents, and the family car. Today a paper boy at work is a rare sight; his job has evolved. Children were phased out to avoid liability, and the parents using the family car became today’s paper boys, otherwise known as Independent Carriers.

At first, when adult carrier routes were being established, newspaper companies offered bonus incentives that made the job attractive; however, over the past twenty years while America as a whole has experienced near historic recession and inflationary pressures, reimbursement to Independent Carriers has remained stagnant, bonuses have all but disappeared, and subsidies are becoming a thing of the past.

The biggest blow to today’s paper carriers is the reduction in tip income caused by direct payments to into the paper companies, which have been made easier by the dreaded plastic card. Most newspapers have all but phased out carrier collections, and as a result, nearly 80% of the former tippers have forgotten that someone gets up very early to make certain the paper is delivered in time for them to enjoy the early news with their first cup of coffee, before they leave for work. Certainly the paper boy had ample time to give better service, however his expenses were not nearly as large as today’s newspaper carriers’, nor were his responsibilities.

The companies, which rely on the carriers to get their publications out, continue to use outdated formulae to compensate the carriers for their effort; in a nutshell, after subsidies are phased out, only the difference between the wholesale and the retail cost of the paper remains as payment; and that is already under the attack by the cost cutters for the companies. Some newspaper companies have contracted clearing houses that deliver multiple newspaper publications, which in turn pay their carriers flat fees per publication, which in turn require heavier loads to earn the same monies. Now, the news-paper carriers must deliver two or more routes, often requiring three or four hours of driving time.

But the effort to get up early in the morning is not the only obstacle today’s carriers face. Dangers lurk in the dark: costly accidents with deer have erased weeks of hard earned income for many. Somewhat amusing but terrifying at the time, in 2006 around Halloween time, on Shades of Death Road, (near Ghost Lake), the author, in a rare instance, was bitten by a bat while placing a paper into a newspaper box; the bat then found himself trapped inside the car, certainly as terrified as the author was. Subsequently, five hospital visits for shots and a rabies vaccine set him back ten weeks of newspaper earnings.

He was a lucky one. Single car accidents in the ice and snow have ruined many-a-family car, and yes, carriers have been seriously hurt. Sadly, some were not lucky enough to survive their fateful encounters in the night.

The cost to the carrier to deliver has never been higher either; as you may imagine, a car that is used in delivery requires greater care in order to maintain the reliable standards the companies demand. In average there are monthly oil changes, brake-work that is necessary three times more often than a car that only commutes, and two or three sets of tires and wheel alignments a year are not unheard of. We have not even talked about the cost of gas and delivery supplies, such as rubber bands and plastic bags! All at that and no increase in wages for more than a decade have if fact substantially reduced the income a carrier makes.

So as you read your paper early in the morning, take a look around a the comfort of your home, and the quality time you gain by getting the newspaper delivered to your driveway, and ponder on this; at fifty-one cents per mile and a round trip to the store of two miles, to buy a fifty cent paper, a person would spend one dollar and fifty-two cents per day, ($3.02 on Sunday), for a total of $12.40 per week, and consume about twenty five minutes of his time each day. Would that make it worthwhile for a customer to rethink tipping his paper carrier? Would $0.30 tip per day seems so much when the bill comes around?

It is a little more difficult to figure out what to tip for Thursday and Sunday service, as it would be for a daily routine; as you see, if you use the mileage to the store and back, plus the face value of the newspaper, times .20, (20%), to factor the tip, and you are satisfied that the amount does not exceed reason, then the amount is sufficient. If the amount seems too low, then you may add what you think would make it a fair figure.
Some people will take offense to being placed on the spot about how to dispense of their money. However, if most of the people reached by this paper are persuaded to rethink their tipping habits, even those customers who do not see how this relates to them will benefit form the goodness of the of the customers who do, for when a service person feels rewarded he can’t help but to improve the quality of the service he provides to all.

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