They do this for the same reason stores prices things at $3.99 instead of $4.00. Our stupid monkey brains see a smaller number and immediately ignore all the associated details that make it not a smaller number.
By calling the 25% a tip, they get to advertise their rates lower than they actually are. They draw in customers with what seems like a good deal, and then since people are already there they just pay it anyway.
11
u/Money-Nectarine6584 8h ago
They set their own prices. Just set the fucking price 25% higher if that’s what you wanted.