So I was at a restaurant eating with my Mom, and we were looking at the Menu. After spending time in China and Germany in recent times, It struck me that tax was not included in the price on the menu, versus the whole number value given up front in restaurants and stores elsewhere.
It remains striking that taxes must be added to the total price at the end of a transaction, in which a person would actually have to calculate beforehand, but more importantly that one makes transactions in change: ie. most folks end up getting change back instead of bills.
For myself, I don't really understand why this must be, as the pennies, ( but also nickels and dimes) one receives often times sit in your jar at the home/office as dead currency, to be emptied out every now and again for the next bake sale or penny drive/war. Essentially, it's a hindrance for guys without coin pouches to keep change jiggling in their pockets, and for people in restaurants to have to wait for people who want to give exact change. Toll booths don't take pennies. Nor do vending machines.
There are a couple thoughts I'd like to learn more about, if anyone knows.
1. Why can't the US switch to a system where tax is included in prices up front, at least for petty transactions? It'd be relative to each state in terms of taxes, but the consumer knows he or she is paying the entire price up front.
2. Can price tags and values be made so that one never has to make a transaction involving pennies, dimes or nickels? Why do price tags have to be so awkward, like $1.39, 35 cents, or .85 cents? If vendors rounded up on everything, it wouldn't heavily affect consumer patterns negatively, as change often ends up as dead weight anyway. You stick a dollar into a vending machine to buy a 85 cent bag of chips. How often do you typically use the nickel and dime you receive in consideration of your other purchases?
Would it be a travesty to do quarters and half dollars as the lowest coin currency denominators on price tags, versus adding a cent or two to the margin? Save both the cashiers and customers some time and hassle.
Hey man I've thought about it before too and I think one of the main reasons has to be that in different states, different things are taxed. Like in NJ, there's no sales tax on clothes, but there is in NY, and it would be such a huge hassle if a chain store like Target had to list different prices for different states (some states also differ in the amount of sales tax, like 6% or 7%). It's much easier to just adjust the cash registers to program it to work a certain way instead of retagging every item.
ReplyDeleteI googled it and this answer also seems pretty legit (though I don't completely understand everything) :
http://answers.yahoo.com/question/index?qid=20070214150046AA29kE0