Why should I tip a contractor setting their own rates?

I’ve gone on a couple of rants about the debate we have in society over the custom of tipping. It seems like everywhere we go, we’re expected to pay for the product or service AND pay more to show appreciation for it.

My perspective shifts dramatically when the service provider is an independent contractor. This is where I find myself diverging from common practice, forming what some might consider an unpopular opinion. When I’m visiting a hairstylist who works out of their own home, for example, or a mechanic in his own garage, my approach to tipping changes entirely.

Here’s my rationale: the fundamental difference between an employed restaurant server and a self-employed professional lies in their control over their own income. A restaurant employee is working for someone else, at a rate determined by their employer, with the menu prices set by the establishment. Their tips are indeed a vital supplement. (Let’s leave out the argument that it should be the employer paying a living wage to staff.)

An independent contractor, however, operates as their own business. They are the one setting their rates, calculating what they need to charge to cover their overheads – rent for their space, cost of materials, insurance, marketing – and ensure they make a comfortable living wage for their time and expertise. Every penny I pay them is theirs, not split with an employer or group of people in the workplace.

In my view, the price they quote me for their service is already the comprehensive cost of doing business. It’s what they’ve determined their labor is worth, factoring in their skill, experience and operational expenses. If they feel they aren’t earning enough, the logical solution, as a business owner, is to adjust their rates, not to rely on the discretionary generosity of their clients simply to make ends meet.

When I pay an independent contractor their stated fee, I consider the transaction complete. I’ve paid for the service rendered, at the price they decided was fair. If the service is exceptional, of course, I am always appreciative. I believe, however, that “exceptional service” is precisely what I’m paying for when I hire a professional who controls their own pricing and reputation. It’s not a bonus; it’s the expected standard for their self-valued work.

For instance, a massage therapist working out of their home studio is able to claim certain tax deductions and, yes, while there are costs associated with their business (towels, oils, laundry, etc.) that $100 they charge me for 60 minutes goes directly to them. Why should I be expected to add 15 or 18 or 20 or 25 percent on top of that? They’re making $100/hr and I’m supposed to feel guilty about not giving more? Bitch, please. Add up the costs of that one sheet on the massage table, a towel, the few squirts of oil on my body and they’re still coming out at least $95 ahead.

So, while I will reluctantly tip the restaurant server because their employer potentially doesn’t believe in fair wages, I consciously choose not to tip the independent hairstylist, the mechanic or massage therapist. I respect their autonomy in setting their own prices and I believe paying that price fully and fairly is the ultimate sign of respect for their craft and their business.

For me, the obligation ends when their self-determined fee is paid – the whole deal, as they set it.