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Tip Over? Things to think about before adding a tip jar to your place of business

By April Y. Pennington

Opinions expressed by Entrepreneur contributors are their own.

Tipping etiquette has long been debated in the service industry,but there's a new source of contention: tip jars.

From Starbucks to independent donut shops, tip jars have poppedup to the delight of employees, but what effect does it have oncustomers? Business psychologist Larina Kase understands the issuefrom both sides of the counter. Now the president of Performance andSuccess Coaching, a small-business consulting company inPhiladelphia, Kase was also one of the pioneers of the tip-jar era,placing one at her father's ice cream shop in the late 1980s.Patrons were intrigued by the jar. But the tip jar is no longer anovelty, and Kase says that it has psychological effects onpatrons. "Patrons can feel uncomfortable when there is a tipjar for services they feel do not deserve a tip," shesays.

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