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Sunday, March 1, 2009

Answer: T = 2Q * (P/12)

Question: How much should you tip a pizza delivery guy?

As most of you know, I deliver pizza part-time. In fact, it has been the subject of a few posts, so I made its own label in my blog: The Hut.

I've been asked several times what the appropriate tip for a pizza delivery driver is. The answer is simple. You just take the average price of the pizza, divide it by twelve, multiply by a factor of two, then multiple that result times the number of pizzas you ordered. Simple, right? You can even express it as a formula:

T = 2Q * (P/12)

Where T = tip, Q = quantity of pizzas, P = average price of pizzas.

For example, if you order 2 medium pizzas that cost an average of $11 dollars each the tip would be $3.67. The simple application of this formula will always result in the correct tip. I suggest you write this down on a post-it note and put it by the front door. There it will always be handy for the when the delivery man arrives.

Or, another option is...you could just tip 15%.

4 comments:

Misfit in Paradise said...

Too confusing for me! I am beginning to think I am lucky that I live in an area that has NO delivery of any kind!

Aaron said...

When in doubt...dish it out! I always rather tip too much than too little. :)

ZeroMan said...

I'm going to make an admission that is difficult for me. I'm a (semi) grown man and...

I've never understood the concept of tipping.

Oh, I understand a little of the basic idea behind it - i.e. When you are being served by someone, you pay them in accordance with how well you feel you were served.
But I have trouble following the application of that idea.

Pizza delivery being a perfect example. Do I begrudge you your money? Absolutely not. I'm sure what you make from Pizza Hut is inadiquate and tips are vital to the job being worthwhile for you. However, Wouldn't it be better if Pizza Hut simply charged the correct amount for a pizza delivery and compensated you directly, instead of leaving it to the arbitrary choice of the recipient? As you stated in this blog, most people have no idea how much is appropriate to tip the delivery guy.

By extrapolation- my business is marginally profitable at best. I consistantly perform a service for my customers - I pull books for them, they often make special request (i.e. "Hey Dave, make sure I get ALL the Secret Invasion crossovers"). Is a tip appropriate? Most people would say no and frankly I would probably be embarrised if anyone offered one. After all, the idea is that I make my profit in the sale of comics.

Now, you could argue that Pizza Hut makes their profit in the sale of the Pizza, but the delivery guy depends on tips. Fair enough, but it is still arbitrary. Pizza Hut should just tack an extra $3.50 or whatever charge is appropriate for delivery. That way the delivery guy doesn't get stiffed from people who don't know how much to tip or are just too cheap to properly tip.

Aaron said...

ZeroMan,

I think I agree with you more than I disagree.

One thing to note though...Pizza Hut ALREADY tacks an extra $2.50 on the delivery to pay for our gas reimbursement ($.81) and to cover our labor. If they were tacking an extra $5.00 per delivery would that dissuade some people from ordering? Probably.

I kind of like the idea of rewarding for a job extra well done. Sometimes the reward is a customer's continued business and positive word of mouth. Sometimes the reward is instant cash.

And anyway, now that you have my simple formula, you will always know what to tip!!