Ever had the thought that you were getting ripped off by McDonald’s when you were seriously hungover? Well here’s a way to seek your petty consumer revenge with the Golden Arches.
McFlurry was introduced down under in June 1999, around the same time when Oreos and that cute golden dog which licks the kid’s milk became famous. It was introduced at an introductory price of around $1.99 and the price has been rising exponentially ever since. As of the time of writing this post, the price of a McFlurry is an extortionate $4.25. This is overvalued relative to the fundamental value of a McFlurry valued using both a CPI and components method.
The McFlurry Loophole
This involves purchasing the individual components of McFlurry separately and combining them. Here’s how:
-2 soft serve cones 2x30cents=60 cents
-A serve of Oreo topping in a sundae lid 50cents
-A small cup of tap water FREE
Total cost: $1.10
When you have all items:
1. Drink or dispose of the water.
2. Remove soft serve from cones and place in cup.
3. Add oreo topping and then mix with the spoon they should have provided you with when you place an order. If not McCafe has free spoons.
4. Consume the combo as you would a McFlurry.
As you can see, you save $3.15 and get more soft serve and Oreo than the real thing. Don’t forget the free cones.
Holding all other factors constant, the only ways McDonalds can close this loophole would be to:
– Raise the price of an individual soft serve cone to $1.825.
-Raise the price of McFlurry topping to $3.65. Although, this would seriously cannibalise sales from those who like to menage a trois their McFlurry toppings.
Although maybe McDonalds has worked out that the *cough* shame *cough* of doing this loophole can be priced at $3.15. If this is the case, they have priced McFlurry correctly as only a small proportion of the population who are assumed to have no shame (i.e. shame=0) will fundamentally price their McFlurry at $1.10. With a $3.15 price difference, I think McDonalds has considerably underestimated the proportion of Australians with no shame.
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