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by MoeGo on Nov 6, 2025 11:32:59 AM
The pet care industry is experiencing unprecedented growth, with the global pet care market valued at $259.7 billion in 2024 and projected to reach $427.75 billion by 2032 (Fortune Business Insights, 2025). In the U.S., pet industry expenditure reached approximately $152 billion in 2024 and is forecast to hit $157 billion in 2025 (APPA, 2025).
Within this growing market, tips represent a significant portion of income for service professionals. Industry estimates suggest that gratuities typically make up 10–30% of total earnings. However, many professionals lack visibility into what’s considered “normal” or how their own tipping performance compares.
We analyzed over 7.9 million appointments and $75+ million in tips processed through the MoeGo platform to uncover how, when, and why clients tip.
Whether you’re a grooming salon owner, a mobile grooming fleet operator, or a boarding/daycare manager, this guide provides clarity on tipping industry benchmarks, new policy changes, and a roadmap to optimize them.
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How Tips Are Evolving: The “No Tax on Tips” Rule (OBBBA 2025)
2025 marks a pivotal year for service workers' income in the U.S. with the introduction of the One Big Beautiful Bill Act (OBBBA). A key provision of this act eliminates federal taxes on tips for service workers, a category that includes pet groomers, kennel technicians, and daycare attendants (IRS, 2025).
What OBBBA Means for Pet Care Professionals
- For Staff: No federal income tax on up to $ 25 000 in tips per year means significantly bigger take-home pay. Every dollar tipped now goes directly into the employee's pocket without the reduction of federal income tax.
- For Clients: Reduced psychological barrier to tipping generously. Knowing that 100% of their gratitude payment goes directly to the worker can make clients feel better about leaving a larger tip.
- For Pet Businesses: This policy is a powerful tool for attracting and retaining top talent. Businesses can now highlight a more lucrative, tax-advantaged income structure when recruiting.
The State of Tipping in Pet Care
As pets are increasingly considered family members—evidenced by 70% of U.S. households owning a pet, and spending on their care and well-being has been prioritized.
According to OysterLink (2025), nearly 60% of the American population believes that customer tips are a substantial part of the service workers’ compensation. Yet, in the pet care industry, this vital income source remains volatile. Without clear benchmarks, businesses can't optimize for it, and staff are left with financial uncertainty—even when their schedule is fully booked. Our MoeGo data provides the breakthrough. Here’s what we found.
Inside the MoeGo Data: What Our Platform Reveals
Service-Level Performance
- The High-Volume Winner: Full Groom
With an average tip of $10.17, the "Full Groom" service is the primary driver of total tip cash for groomers, leveraging its higher price point.
- The Hidden Tips: Nail Trims
Despite a lower per-service tip amount ($1.95), "Nail Trims" command the highest tip rate of any service at 10.42%. This indicates that for a relatively low-cost, quick service, clients are exceptionally generous on a percentage basis.
- The "High-Margin, High-Satisfaction" Add-On
A "Nail Trim" is not just a service; it's a high-return add-on. Its high tip rate and low time investment make it a profitability and client-satisfaction multiplier.
- Boarding and Daycare Underperform in Tipping
With tip rates of 2.3% (boarding) and 1.4% (daycare), these services may lack direct client–staff interaction or clear tipping touchpoints.
What It Means
- Highlight Your Add-Ons
Optimize your team’s workflow and point-of-sale prompts to highlight quick, high-gratification services. Small upsells can create outsized financial impact when tip behavior aligns with satisfaction.
- Train Your Team for the Upsell
Encouraging staff to confidently suggest high-satisfaction, high-tip-rate add-ons like nail trims and recognizing those efforts can meaningfully lift total tip revenue.
Geographic & Local Differences
Most Generous States & Cities in the U.S.
- Top States by Average Tip Amount
Colorado ($18.22), Utah ($14.58), and Virginia ($14.46) lead the nation, showing a significantly more generous tipping culture in these markets.
- Top States by Average Tip Rate
Colorado (14.58%) and Rhode Island (8.63%) stand out, indicating clients here tip a higher percentage of the total bill.
City-Level Powerhouses
- The Most Genreous City: St. Louis
St. Louis, MO is the undisputed leader with an average tip of $25.21 per appointment, far exceeding the national average for grooming.
- Southern & Western Cities Lead in Generosity
A clear geographic cluster of high-tipping cities emerges, including Austin, TX ($22.17), Nashville, TN ($17.57), Charlotte, NC ($15.43), and Denver, CO ($12.49). This suggests robust tipping cultures in these growing metropolitan areas.
- Upscale Suburbs Show Promise
Markets like Gilbert, AZ and Charlotte, NC demonstrate strong tipping behavior, highlighting the opportunity in affluent suburban areas.
Key Regional Patterns
- The "Mountain West" Region
States like Colorado and Utah exhibit a consistently strong and generous tipping culture across both states and major cities.
- Traditional Service Hubs Hold Strong:
Major metropolitan areas like Los Angeles, Miami, and Las Vegas show solid average tips, but are outperformed in tip rate by cities with a stronger local service culture.
What It Means
- Benchmarking is Critical
Businesses should compare their average tip and tip rate against the leaders in their state and region to gauge local performance.
- Learn from the Leaders
Salons in high-tipping cities like St. Louis and Austin likely have client engagement and service excellence practices that others can emulate.
- Localized Strategy is Key
A one-size-fits-all approach to tipping is ineffective. Training and client communication should be tailored to the specific potential of your local market.
Peak Season & Seasonal Tipping Trends
Overall Holiday Surge
- The Holiday Season (Nov-Jan)
The peak season for tipping, outperforming the summer months across all major service types.
- December as the Leading Month
Grooming tips peak in December at $10.86 per appointment, driven by clients preparing their pets for holiday gatherings and visits.
Spring & Mid-Year Tip Rise
- Grooming Tip on the Rise: March and April
March and April show robust tipping for grooming (over $10.45), indicating a strong spring revival after the winter months.
- Mid Year Peak: May
May is a critical month for revenue, showing a strong upward trend and serving as the peak season for Boarding ($7.53 avg tip), likely due to Memorial Day and early summer vacation planning.
Service-Specific Seasonal Patterns
- Grooming: The Holiday Rush
Shows the most consistent high performance from November through May, making this a 7-month "high season" for groomer tip income.
- Boarding: Holiday Travels
Tips surge during holiday travel periods, with the highest averages in May ($7.53) and December ($7.41).
- Daycare: New Year Routine and Budget
While low overall, its highest tips occur in January ($0.52), potentially linked to New Year's routines and post-holiday client budgets.
What It Means
- Plan Marketing & Promotions
Schedule premium service packages and outreach campaigns to align with the high-tip periods of November-May.
- Manage Staffing & Expectations
Ensure adequate staffing during peak seasons (especially December & May) and communicate seasonal income fluctuations to team members for better financial planning.
- Bundle Services
Create bundled offers in the slower summer months (e.g., "Summer Spa Package") to increase the average transaction value and compensate for lower tip rates.
Client-Level Demographic & Behavior
High-Value Client Patterns
- Client Loyalty Drives Generosity
Several top-tipping clients show repeated appointment bookings, indicating that building long-term client relationships directly correlates with increased tipping.
- "Serial High Tippers" Exist
Some clients appear multiple times in top tipping lists across different appointments, indicating they maintain consistently generous tipping behavior rather than one-time exceptional tips.
Geographic Concentration of Top Clients
- Top Tippers Are Geographically Dispersed
While cities like St. Louis and Austin show high average tips, the individual top-tipping clients come from various locations, meaning that exceptionally generous clients exist in many markets, not just high-tipping regions.
What It Means
- Identify and Nurture "Super Clients"
Use your CRM to flag clients who consistently tip above average and provide them with premium service experiences to maintain their loyalty.
- Develop Relationship-Building Protocols
Since established relationships drive the highest tips, implement systematic follow-up and personal connection strategies for all new clients.
- Create Tiered Service Programs
Consider developing VIP or membership programs specifically designed to reward and retain your most generous clients.
What Drives Higher Tips: A Combination of Tech and Touch
Our analysis reveals that higher tips are not random, but driven by a combination of strategic client communication and thoughtful payment processes. Here is a list of features and tools that the leading businesses are using to systematically and significantly boost their team's tip earnings.
Smart Tip: Tailor Tip Prompts to Every Ticket
Simply leaving the tip amount to chance, or a blank line on a receipt, is a missed opportunity. Our data shows that guiding the client with pre-set options directly influences their behavior.
Guide Generosity & Increase Earnings by 20%+
Enabling the Smart Tip feature led to a dramatic increase in tips. For grooming appointments, it boosted the average tip by over 20% (from $9.96 to $12.01) and, more impressively, increased the average tip rate by 54% (from 10.82% to 16.66%).
How? MoeGo Pay's Smart Tip allows you to set flexible, intelligent tipping options.
- Customize by Ticket Price: For example, you can set prompts by dollar amount for smaller tickets (e.g., under $100) and by percentage for larger ones (e.g., over $100).
- Remove Mental Burden: This simplifies the decision for the client and presents fair, context-aware options that feel appropriate for the service rendered, leading to higher, more consistent tips.
Digital Report Card: Visual Proof Builds Generosity
A service ends when the pet goes home, but the client's impression is solidified moments later. A Digital Report Card transforms a standard transaction into a memorable experience.
- For Grooming: a grooming report
- For Boarding & Daycare: a daily report card
The Single Most Powerful Tool for a 53% Tip Lift
This is your most powerful lever. Sending a post-service photo and update increased the average grooming tip by a staggering 53%, from $9.81 to $15.24. We call this "The $5 Photo" strategy.
How? Our Digital Report Card tool makes this effortless and impactful.
- Capture the Moment: A simple before & after photo and a personalized note showcase your work and the pet's happiness, creating an emotional connection that gratitude (in the form of a tip) naturally follows.
- Bonus: MoeGo offers a variety of festive and seasonal themes, so that you to tailor the report card's appearance for holidays or special occasions, adding a extra layer of personalization and brand charm.
Personalized Communication: Build Relationships That Pay Off
Consistent, professional communication builds the trust and rapport that makes clients want to be generous. Tip-friendly communication shouldn't end with the report card.
Message Templates
Save time while maintaining a personal touch. Use pre-built templates from the Message Center to welcome new clients, send holiday reminders, celebrate an anniversary, announce new offerings, and more.
Auto Messages
Keep clients informed at every step, from appointment reminders to notifying them when their pet is ready for pickup and rebook reminders. Bonus point: keep everything automated with an Automated Workflow.
This professional, seamless communication reduces anxiety and enhances the overall client experience, directly contributing to a more positive and generous tipping mindset.
Just starting or adding to your business?
We have flexible plans meant for all stages.
The State of Tipping in Pet Care 2025: Data, Policy, and Strategies for Maximizing Team Income
A Paragon x MoeGo Guide: Master Your Mobile Grooming Schedule
