How McDonald's responds to cheap bastards like us
OhioGuy
I found myself occasionally going to McDonald's after I discovered
their Double Cheeseburger on the dollar menu. Normally, I went to
Wendy's and got the Jr. Cheeseburger Deluxe, or sometimes to Burger King
to get the Whopper Jr.
However, our local McDonald's raised the price of their double
cheeseburger from $1 up to $1.38. The one still on the dollar menu has
two burger patties, and just a single slice of cheese. A 38% increase
to keep that second piece of cheese seemed a bit much, so I don't go to
McDonald's much at all any more.
Now that the price for food commodities has started going back down,
how many of you think that McDonald's will decrease their retail costs?
Will they, or will it be more like how the gas stations keep prices up
for a while?
Woody
"OhioGuy" <no...@none.net> wrote in message
news:gmfiev$21ab$1...@news.ett.com.ua...
Any business will keep their prices as high as possible, as long as
possible, in order to fatten their bottom line. Note what the U.S. banks are
doing with the "bailout" money--stuffing it in their mattress so they have a
better dividend report to issue to shareholders next quarter.
You can expect McDonald's to decrease their prices only if sales decline
enough to hurt their profitability. And, when they do so, they will make a
big lying deal of how "we're reducing prices to save you money!"
Woody
John A. Weeks III
"Woody" <em...@munged.com> wrote:
> Any business will keep their prices as high as possible, as long as
> possible, in order to fatten their bottom line.
The facts show that is not true. Walmart has a policy of always
trying to offer the lowest possible price. They account for a
major slice of the retail market.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 jo...@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
Woody
"John A. Weeks III" <jo...@johnweeks.com> wrote in message
news:john-84E29D.1...@news-1.octanews.net...
> In article <%5Jil.237644$NN4.2...@en-nntp-08.dc1.easynews.com>,
> "Woody" <em...@munged.com> wrote:
>
>> Any business will keep their prices as high as possible, as long as
>> possible, in order to fatten their bottom line.
>
> The facts show that is not true. Walmart has a policy of always
> trying to offer the lowest possible price. They account for a
> major slice of the retail market.
The "lowest possible price" is zero! AFAIK Wal-Mart doesn't give stuff away
for free. Failing that, the lowest feasible price is at cost, and AFAIK
Wal-Mart does not avoid making a profit.
What Wal-Mart does is what every other retail operation does: Balance how
many pieces they're going to sell against how much to charge for each piece,
in order to maximize the total amount of money taken in. They make a big
noise about "rollbacks" but, in fact, the effect of rolled-back prices on
the operation are calculated long before the initial, not-rolled-back,
_false_ price is first posted. This is a marketing principle that has been
known and used for decades.
Any business that claims to give a shit about whether its customers save
money or not is lying. Don't believe the hype.
Woody
Lou
"Woody" <em...@munged.com> wrote in message
news:IKLil.238165$NN4.1...@en-nntp-08.dc1.easynews.com...
>
>
> The "lowest possible price" is zero!
Where do you get this stuff? With extremely rare exceptions, zero is not a
sustainable price. Any company that wants to stay in business cannot simply
give its product away, any more than you could go to work every day without
being paid.
> AFAIK Wal-Mart doesn't give stuff away
> for free. Failing that, the lowest feasible price is at cost, and AFAIK
> Wal-Mart does not avoid making a profit.
"Cost" of course, includes the costs of doing business - store
rent/construction, paying for the help, utilities, taxes, etc. And that's
still not a feasible price - how much of your money have you put into an
enterprise with the **intention** of not getting a return?
SMS
> Now that the price for food commodities has started going back down,
> how many of you think that McDonald's will decrease their retail costs?
> Will they, or will it be more like how the gas stations keep prices up
> for a while?
It's interesting to me how much the mid-price restaurants have gone up
in price. A few restaurant chains seem to be actually doing some
marketing to attract new customers, i.e. Hometown Buffet, where the food
isn't terrific, but it's as good as what you'd get at a Denny's,
Applebee's, TGIFridays, etc.. They have a BOGO deal that brings the cost
down to about $6/person, and you can get as many of the coupons as you want.
James
> http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=11887463&...
>
> I found myself occasionally going to McDonald's after I discovered
> their Double Cheeseburger on the dollar menu. Normally, I went to
> Wendy's and got the Jr. Cheeseburger Deluxe, or sometimes to Burger King
> to get the Whopper Jr.
>
> However, our local McDonald's raised the price of their double
> cheeseburger from $1 up to $1.38. The one still on the dollar menu has
> two burger patties, and just a single slice of cheese. A 38% increase
> to keep that second piece of cheese seemed a bit much, so I don't go to
> McDonald's much at all any more.
>
> Now that the price for food commodities has started going back down,
> how many of you think that McDonald's will decrease their retail costs?
> Will they, or will it be more like how the gas stations keep prices up
> for a while?
The thing that pissed me off was they no longer give comp paper cups
for water. They now sell bottled water. Anyway I like the Wendy 99
cent double stack special better. I also like Wendy onion better than
the chopped onion that McD uses on the burgers.
clams_casino
>In article <%5Jil.237644$NN4.2...@en-nntp-08.dc1.easynews.com>,
> "Woody" <em...@munged.com> wrote:
>
>
>
>>Any business will keep their prices as high as possible, as long as
>>possible, in order to fatten their bottom line.
>>
>>
>
>The facts show that is not true. Walmart has a policy of always
>trying to offer the lowest possible price. They account for a
>major slice of the retail market.
>
>-john-
>
>
>
Of course, the key is "keep their prices as high as possible". If
they aren't competitive (making / maximizing a profit), they will either
drop the price, force a supplier to lower the cost or drop the item,
keeping the price as high as possible to maintain market share, etc..
Woody
"Lou" <lpo...@hotmail.com> wrote in message
news:gmg2if$lb9$1...@news.motzarella.org...
You're missing the point. I'm saying exactly what you're saying, except
that, unlike you, I'm not buried alive inside the peculiar logic of
profit-making. The other poster said Wal-Mart offers "the lowest possible
price." Well, like it or not, the lowest _possible_ price is free of charge!
It doesn't lead to a sustainable business, but the other poster didn't say
"the lowest possible price sustainable by a business." S/he said simply the
lowest possible price. And so on.
Woody
Woody
"James" <j006...@hotmail.com> wrote in message
news:3bc95612-7b42-4c31...@r10g2000prf.googlegroups.com...
------------------------------------------------------
McDonald's doesn't use real onions on its burgers. It uses something called
"recons," which are freezedried virtual onions that look like rice until you
add water to them. I worked in a McD's and therefore know this.
Woody
Woody
"clams_casino" <PeterG...@DrunkinClam.com> wrote in message
news:FzMil.3597$Vk5....@newsfe13.iad...
All true. And the very last thing that crosses the mind of anyone in the
company except the marketing-department lie machines is saving the customer
money!
Woody
OhioGuy
>for water. They now sell bottled water.
Are you serious? They decided that if you wanted something to drink,
they would be getting at least a buck out of you, no matter what?
I guess I'll have to remember to start bringing along a thermos to
fill up from the tap in the bathroom, then. If I also fill it up with a
lemonade mix ahead of time, it will be almost like we had paid for a
drink, but with no cost.
Regarding the price hikes - how many of you tend to keep buying the
same thing at a higher price, and how many stick with the dollar menu?
aine...@gmail.com
xoxo,
aineecumi
neway, my secret to release tension is playing this game <a
href=http://www.gamestotal.com> http://www.gamestotal.com </a> <a
href=http://uc.gamestotal.com> http://uc.gamestotal.com </a> <a
href=http://gc.gamestotal.com> http://gc.gamestotal.com </a> <a
href=http://3700ad.gamestotal.com> http://3700ad.gamestotal.com </a>
<a href=http://manga.gamestotal.com> http://manga.gamestotal.com </a>
SMS
> "Woody" <em...@munged.com> wrote:
>
>> Any business will keep their prices as high as possible, as long as
>> possible, in order to fatten their bottom line.
>
> The facts show that is not true. Walmart has a policy of always
> trying to offer the lowest possible price.
Funny stuff!
clams_casino
>In article <%5Jil.237644$NN4.2...@en-nntp-08.dc1.easynews.com>,
> "Woody" <em...@munged.com> wrote:
>
>
>
>>Any business will keep their prices as high as possible, as long as
>>possible, in order to fatten their bottom line.
>>
>>
>
>The facts show that is not true. Walmart has a policy of always
>trying to offer the lowest possible price. They account for a
>major slice of the retail market.
>
>-john-
>
>
>
Actually, Walmart has a policy of having the lowest cost structure so
they can sell equal to lower than their competition with an equal to
higher profit margin.
If they don't achieve an acceptable profit margin, the product will be
long gone.
Also, while Walmart does tend to have a valid reputation for overall low
pricing, they are by far not always the lowest price.
clams_casino
>In article <john-84E29D.1...@news-1.octanews.net>,
> "John A. Weeks III" <jo...@johnweeks.com> wrote:
>
>
>
>>In article <%5Jil.237644$NN4.2...@en-nntp-08.dc1.easynews.com>,
>> "Woody" <em...@munged.com> wrote:
>>
>>
>>
>>>Any business will keep their prices as high as possible, as long as
>>>possible, in order to fatten their bottom line.
>>>
>>>
>>The facts show that is not true. Walmart has a policy of always
>>trying to offer the lowest possible price. They account for a
>>major slice of the retail market.
>>
>>
>
>Yeh, and they sell junk.
>
Actually, they sell the same stuff that others sell. I'm not sure they
much that isn't sold elsewhere.
>You pay for Walmart's low prices by less
>customer service, longer lines, and a lower selection of goods.
>
Actually, I've typically found Walmart's customer service to be quite
excellent. They leave you alone while shopping, have an essentially no
question return policy and I rarely see lines, except perhaps at times
in the Christmas season. Then again, I'm never there on a Saturday.
>For
>example, I once went there to buy a food scale. I asked several
>employees where I could find a food scale? All I got was shrugs and "I
>don't know." I looked in all the obvious places to no avail. I ended up
>walking to a nearby supermarket where I found just what I wanted in five
>minutes.
>
>
Anytime I've ever asked about an item, either that employee or someone
they call upon has personally escorted me right to the item and/or
quickly acknowledged that they didn't carry that particular item.
>Then there was the time where my cleaning woman requested a certain
>brand of floor cleaner. I went to Walmart and they had three of four
>types of floor cleaner, but no Mr. Clean. I ended up buying it at a
>nearby supermarket.
>
>
While they do carry many items, they obviously don't carry every brand.
A downside is that they tend to carry only the larger sizes, but do you
really expect them to carry every brand in every size? (Same for your
supermarket.)
>Then I bought a belt there and after two months, it fell apart.
>
>
Same thing happened to me at Marshalls. I also recall tossing out
some Brooks Brothers shirts after a few months which I thought I was
getting at a good price at one of their outlets. Talk about real crap.
>My problem with all those fast food places' value menus is they never
>have any healthy sandwiches on them. Wendy's has a 99 cent garden salad
>and a baked potato, but if you want a grilled chicken sandwich, you have
>to pay over $3 for it, while a fattening fried chicken sandwich is only
>99 cents. Why can't the grilled chicken sandwich be 99 cents too?
>
>
Because the 99 cent chicken is molded pieces with a lot of breading, etc
while the grilled chicken is a piece of meat?
clams_casino
>
>
>McDonalds' overhead consists of a lot more than food commodities. Same
>with other restaurants. They have insurance, rent or mortgage payments,
>costs for paper goods, payroll, insurance, utilities, etc. and most of
>those items go up in price over time.
>
>
While we rarely eat at McDonalds, we do often stop there for their rest
rooms.
OhioGuy
>to pay over $3 for it, while a fattening fried chicken sandwich is only
>99 cents. Why can't the grilled chicken sandwich be 99 cents too?
Hmm. Considering how processed their other sandwiches are, you might
think that one which isn't handled or changed as much should be cheaper.
However, I'm wondering if they might almost get "paid" to put some of
the stuff in the processed ones. It brings back my thoughts about
something I found in my dad's garage years ago. I was reading the
ingredients on a pesticide bottle, and one of the ingredients was
"cheese". Yep, you read that right. I started wondering why in the
world cheese would be an ingredient in a pesticide bottle, and the only
thing I could figure out was that perhaps it was bad cheese, and it
would have cost the company $ to get rid of. However, the company
making the pesticide may have accepted it for free.
Maybe there is a company that needed to get rid of X substance, and
they used it as a filler in the processed sandwich?
Part of it is probably perception, though. They realize that people
are used to paying more for what is perceived as higher quality,
healthier foods. (organic, and all that sort of thing) As such, even if
the grilled chicken sandwich COULD be sold for $1.50 profitably, they
have no problem charging double that, if they feel that 80% of the
potential clients will still buy them at that price.
Woody
"clams_casino" <PeterG...@DrunkinClam.com> wrote in message
> Shawn Hirn wrote:
>
> Because the 99 cent chicken is molded pieces with a lot of breading, etc
> while the grilled chicken is a piece of meat?
You'd figure pulverized chicken would be more expensive because of
additional processing cost, but it's actually cheap because the chicken
being pulverized can be any sausage-like junk--gristle, gizzards, tendons,
etc.
Woody
clams_casino
According to the McDonald's web site, a McChicken sandwich weighs 5 oz
(360 calories / 14 gm protein) with 42% of its weight in fat. A
Grilled chicken sandwich is 8 oz (420 calories / 32 grams protein) with
20% of its weight in fat. Part of the cost difference is in weight
alone with the remaining being much cheaper fatty by products vs. the
breast meat.
The McChicken is clearly the more economical source for fat and calories.
Rod Speed
>> but if you want a grilled chicken sandwich, you have
>> to pay over $3 for it, while a fattening fried chicken sandwich is
>> only 99 cents. Why can't the grilled chicken sandwich be 99 cents
>> too?
>
> Hmm. Considering how processed their other sandwiches are, you
> might think that one which isn't handled or changed as much should be
> cheaper.
> However, I'm wondering if they might almost get "paid" to put some
> of the stuff in the processed ones. It brings back my thoughts about
> something I found in my dad's garage years ago. I was reading the
> ingredients on a pesticide bottle, and one of the ingredients was
> "cheese". Yep, you read that right. I started wondering why in the
> world cheese would be an ingredient in a pesticide bottle, and the
> only thing I could figure out was that perhaps it was bad cheese, and
> it would have cost the company $ to get rid of. However, the company
> making the pesticide may have accepted it for free.
Its much more likely it was just a misprint.
> Maybe there is a company that needed to get rid of X substance, and they used it as a filler in the processed
> sandwich?
Much more expensive to process it into pesticide than to dump it.
> Part of it is probably perception, though. They realize that people
> are used to paying more for what is perceived as higher quality,
> healthier foods. (organic, and all that sort of thing) As such, even
> if the grilled chicken sandwich COULD be sold for $1.50 profitably,
> they have no problem charging double that, if they feel that 80% of
> the potential clients will still buy them at that price.
Yep, that and the cheapest one is just the otherwise
unsalable crap from the chicken is the real reason.
SoCalMike
> "Woody" <em...@munged.com> wrote:
>
>> Any business will keep their prices as high as possible, as long as
>> possible, in order to fatten their bottom line.
>
> The facts show that is not true. Walmart has a policy of always
> trying to offer the lowest possible price. They account for a
> major slice of the retail market.
>
> -john-
>
coffcoff... bullshit. i see the same products from the same chinese
factories at the dollar store. walmart wants $3+ for the same stuff!
SoCalMike
Lou
By that logic, the lowest possible price would be that they pay you to take
whatever it is off their hands. You get a cup of coffee without charge, and
they give you a buck to take it away. Or a hundred bucks. Or maybe a
million...come to think of it, why not a billion, or a trillion.
Every statement we make comes loaded with a raft of assumptions and
presumptions, background knowledge and context. In conversation with normal
people it isn't necessary to restate the whole shebang every time we open
our mouths to speak. In the context of a business, one of the basic
assumptions is the concept of the going concern, the idea that a company is
doing business now and will continue to do business for the forseeable
future. In order for that assumption to hold even approximately, there is a
minimum possible price that's considerably higher than free.
>
> Woody
>
>
Dave
"John A. Weeks III" <jo...@johnweeks.com> wrote in message
news:john-84E29D.1...@news-1.octanews.net...
> In article <%5Jil.237644$NN4.2...@en-nntp-08.dc1.easynews.com>,
> "Woody" <em...@munged.com> wrote:
>
> > Any business will keep their prices as high as possible, as long as
> > possible, in order to fatten their bottom line.
>
> The facts show that is not true. Walmart has a policy of always
> trying to offer the lowest possible price.
OMG, we've found the perfect consumer. The guy who buys the advertising
lies, hook line and sinker. -Dave
Kayak44
> "John A. Weeks III" <j...@johnweeks.com> wrote in messagenews:john-84E29D.1...@news-1.octanews.net...
>
> > In article <%5Jil.237644$NN4.224...@en-nntp-08.dc1.easynews.com>,
> > "Woody" <em...@munged.com> wrote:
>
> > > Any business will keep their prices as high as possible, as long as
> > > possible, in order to fatten their bottom line.
>
> > The facts show that is not true. Walmart has a policy of always
> > trying to offer the lowest possible price.
>
> OMG, we've found the perfect consumer. The guy who buys the advertising
> lies, hook line and sinker. -Dave
Walmarts prices always come with some bullshit game. As an example,
they sold a six-pack of Pepsi, 24 oz bottles for $2.89. for months.
All of the sudden there's a sign saying "Rollback, was $3.50, now
$2.98". WTH? Rollback and it's now 9 cents more than it usually sold
for. They pull this shit all the time.
Tim Campbell
> In article <%5Jil.237644$NN4.224...@en-nntp-08.dc1.easynews.com>,
>
> "Woody" <em...@munged.com> wrote:
> > Any business will keep their prices as high as possible, as long as
> > possible, in order to fatten their bottom line.
>
> The facts show that is not true. Walmart has a policy of always
> major slice of the retail market.
>
> -john-
But, as I've noticed, you have to keep an eye on Walmart.
Their sign doesn't say "Always the Lowest Price," it says "Always Low
Prices."
There are many items at Walmart that one can do better on elsewhere.
clams_casino
> I just want to go in and say I want a number 4 and get the price listed on
>the overhead menu.
>
>
I've seen cases where the combo "special" actually cost more (granted,
just a few cents) than the individual items.
Along that line, I often times buy individual items vs. the combo
because I really don't want / need that half gallon of flavored sugar
water when a $1 cup will do just fine (especially when they provided
do-it-yourself refills).
clams_casino
>O
>
>
>
>
>What about the orange solidified square oil that they call cheese and try to get you to pay more for?
>
>
Some people like that imitation cheese product, however when I order a
McDouble, I always ask them to hold the "cheese".
At first, I was a bit intimidated to undo the cheese, but in reality, it
dawned on me that that I'm saving them money vs. me peeling it off & I
tossing it.
Don Klipstein
Kayak44 wrote:
>On Feb 7, 1:17 pm, "Dave" <now...@noway2.not> wrote:
>> "John A. Weeks III" <j...@johnweeks.com> wrote in
>>messagenews:john-84E29D.1...@news-1.octanews.net...
>>
>> > The facts show that is not true. Walmart has a policy of always
>> > trying to offer the lowest possible price.
>>
>> OMG, we've found the perfect consumer. The guy who buys the advertising
>> lies, hook line and sinker. -Dave
>
>Walmarts prices always come with some bullshit game. As an example,
>they sold a six-pack of Pepsi, 24 oz bottles for $2.89. for months.
>All of the sudden there's a sign saying "Rollback, was $3.50, now
>$2.98". WTH? Rollback and it's now 9 cents more than it usually sold
>for. They pull this shit all the time.
Not that I have any liking for Wal-Mart at all, but they aren't the only
ones doing this BS. I have seen some supermarkets do that, and I think
that practice is a little common.
Store raises price of something for a short period of time, then
partially lowers the price to one that is still higher than its everyday
price was before the previous week, and slaps on a sign saying "New Lower
Price".
Other BS that I see in supermarkets, some by the supermarkets, more by
the product manufacturers:
* Laundry detergents change what their labels say as in terms of how
ultra-concentrated it is. Price per load of laundry goes up.
* Bleach seems to come in different oddball concentrations and different
bottle sizes every few or every couple years. Price per gram of sodium
hypochlorite in the bleach keeps going up.
* Once I saw a supermarket give unit prices of Brand A dish detergent in
cents per ounce and Brand B of dish detergent in cents per quart.
* Container sizes for many products change every few years or couple
years it seems to me - usually changing to slightly smaller, occaisionally
to noticeably smaller than before.
- Don Klipstein (d...@misty.com)
Dave
> years it seems to me - usually changing to slightly smaller, occaisionally
> to noticeably smaller than before.
Like the half gallon of ice cream that was 1.75 quarts, and now 1.5 quarts.
When it shrinks to 8 ounces or so, you think anybody will finally notice
that it's not a half gallon? What will the ice cream producers do then?
Come out with a new "family" size of oh I don't know....say, 1/2
gallon???? -Dave
SMS
What's interesting about the ice cream size reduction is that maybe
there was some consumer resistance, since at least for Breyer's it now
seems to not only be on sale a lot more, but at many stores the regular
price came down a bit as well. Now it's easy to get the 1.5 quart size
for under $4 (I won't pay more than $4) and often it's on sale for $3.
When my kids suggest going for ice cream, I tell them they can each
choose a carton of Breyer's, since it pains me to pay $3 for a single
ice-cream cone. Now the big thing is self-serve frozen yogurt where they
charge by the ounce, and someone could easily end up with an $8 cup of
yogurt.
clams_casino
>>
>>
>
>Like the half gallon of ice cream that was 1.75 quarts, and now 1.5 quarts.
>When it shrinks to 8 ounces or so, you think anybody will finally notice
>that it's not a half gallon? What will the ice cream producers do then?
>Come out with a new "family" size of oh I don't know....say, 1/2
>gallon???? -Dave
>
>
>
>
The potato chip companies have gone through that exact cycle a half
dozen times over the past 50 years.
Marsha
> * Once I saw a supermarket give unit prices of Brand A dish detergent in
> cents per ounce and Brand B of dish detergent in cents per quart.
>
This is my favorite ingenious way to confuse the consumer. Always have
a calculator handy.
Marsha
elaich
> A 38% increase
> to keep that second piece of cheese seemed a bit much, so I don't go to
> McDonald's much at all any more.
>
I always order my double cheeseburger at McDonald's "without cheese." That
gooey manufactured conglomeration they call cheese is inedible.
www.Queensbridge.us
> "Woody" <em...@munged.com> wrote in message
>
> news:%yMil.68254$pp1....@en-nntp-06.dc1.easynews.com...
>
>
>
>
>
See also other thread about NYC McDonald's
Angus Third Pounder less expensive on Times Square then in Queens
where rent is a lot lower
Zee
> OhioGuy <n...@none.net> wrote innews:gmfiev$21ab$1...@news.ett.com.ua:
Same thing here. I want real cheese not some cheesy colored substance.