Currently lost in all the excitement about Chinese spy balloons and Marjorie Taylor Greene discovering that the feds sent $5 billion to one Illinois elementary school to teach kids that being white is a bad thing is the announcement yesterday that Joe Biden is going after … junk fees … or zombie fees if you’re into the whole “Last of Us” thing.
I couldn’t say, “amen” any louder if I had Metallica’s sound system. There’s no end of things that can annoy the living bejesus out of you (if you let them), but this pervasive and ever-growing gaming of otherwise straightforward retail pricing is truly out of control. The Biden gang says specifically they’re after …
- excessive online concert, sporting event and entertainment ticket fees
- airline fees for families sitting together on flights
- exorbitant early termination fees for TV, phone and internet services
- surprise resort and destination fees
This is the kind of populist-oriented legislation you’d think would rally the masses and engender wide bi-partisan support. But I’m not going to get carried away with reckless hope. Lobbying pressure from the likes of Live Nation/Ticketmaster, Delta and United et al, Comcast and Las Vegas will likely convince those lawmakers perpetually giving lip service to “hard working Americans” that this idea will only suppress our great and wonderful entrepreneurial spirit, not to mention negatively impact shareholder value.
Simultaneous with reading about what they’re calling the Junk Fee Protection Act my wife was following a blow up on Next Door, the local community site usually overrun with stories of feral cats, porch pirates and baroque theories of gross mismanagement if not outright corruption by city administrators … in Edina, in our case. The kerfuffle was over mandatory, ill-defined fees creeping into the tabs at local restaurants. In other words, the zombie virus-like spread of “service fees” slapped on top of the cost of whatever you eat and drink … plus tip.
In our cozy corner of the world a restaurant/deli operation called Broders announced it was instituting a 15% “service and equity fee” on top of everyone’s order while still … you gotta love this … allowing patrons to tip another 15%, 18% or 25%. The Next Door trolls were not happy. And rightfully so.
However Broders and other venues want to ‘splain it, it’s tacky price gaming no different than that Vegas hotel you booked for $150 a night plus tax hitting you with a 30% “resort fee” as you hit the check out button. Or, to use another current example, Live Nation/Ticketmaster collecting an extra $20, $30, $40 in “service fees” on top of the $150 they’ve already charged you for booking that Kid Rock concert … via a computer.
What makes it all even more annoyingly laughable is the constant refrain that this fee-upon-fee-upon-tip scam is something they’re doing to benefit their overworked, underpaid staff in the back of the house. Because, you know, actually paying the busboys, salad choppers and dishwashers $18 – $20 an hour is an obligation that must fall upon the customer, not the restaurant’s owners.
And which it would under any rational, gaming-free system, where a business meets its cost of doing business, including compensation for employees, by … dare we say it out loud? … raising prices to cover all costs and show a profit. It’s an insane concept I concede. Likely a radical socialist conspiracy if Marjorie Taylor Greene gets wind of it. But until the private equity boys and hard-driving Type A business school grads picked and tossed their chump customers into the deep end of “fee world” pool it worked just fine.
Capitalism. Insane, I know.
Want a room in Vegas? Well, based on demand that’ll now cost you $180 a night. Don’t want to pay that? Fine. Stay out in Primm and drive in to catch the animatronic Grand Funk Railroad Tribute Band at the Sahara. Want a pound of prosciutto from Broder’s for your next elegant soiree? Well, based on the rising cost of hiring competent staff and everything, that’ll now cost you $16 instead of the $13 it was last year. If you want to tip the kid that wrapped it and rang you up another couple bucks, knock yourself out.
Just stop with the word salad explanations and the pretense that bullshit price gaming is the only fair way to sustain your business. And by that I mean gibberish like this from the owner of Broder’s: “We’re trying to create a compensation structure that looks different than it did before the pandemic … and strive for pay equity between front-of-house and back-of-house service members.”
To which I say, “No you’re not. You’re simply attaching yourself to an obnoxious trend that others have successfully got away with … until now.”