u/curry_in_my_beard

I saw a post about tipping for self employed jobs like hairdressing (e.g. if someone is renting a chair in a salon should you tip when they’ve set the price?) Someone said they rely on tips because the price is mainly based on non labour overheads.

When self employed service workers calculate pricing do they put the labour cost as variable based on tips? I understand why tips exist when you don’t have control on accounting as an employee, but if you control the price then is labour not costed out in to the price you set?

How does this impact income and P+L forecasting (for anyone reliant on tips)? How can you calculate how much income/how many sales you need to make if it’s entirely variable on the amount someone chooses to tip?