Tipping budget
It all depends on the dealer. If I think they are a good dealer (can deal very fast, are friendly, don’t bring any attention to me from the pit, deal deeply, etc.) then I will always tip them. However, you are right that it cuts into your profits, sometimes quite a bit. If your EV is $20 per hour and you tip $2 per hour and $5 when you color up then your EV has been reduced to $13, a full 35% decrease!
What I do is keep a separate bankroll for tipping. I am not a full-time player so I have a job that pays me every week. When I go on a gambling trip I will bring a portion of my bankroll for playing and a small extra bankroll for tips and expenses. Maybe I’ll put in an hour or two of overtime in order to cover the expenses of the trip. I consider tipping to be an occupational expense so it comes out of my pocket, not my bankroll. That allows me to tip the good dealers without eating up my bankroll.
I am still giving up the same amount of money, it is just coming from a different place.
-Sonny-