Ever Wanted To Know How Much Things Cost At McDonalds?

Liquesence
reply to post by tothetenthpower

 

Very interesting, thanks for sharing. I'm always interested in actual cost versus retail. The way they jack prices up makes me sick. Granted, and you mentioned, one can argue staffing/transpo/etc that help drive up prices, but I'm reminded of a few things:

1) I remember reading several years ago about drug costs. A single pill that take .01 cents to make is sold for several dollars or more a pill. Hundreds and sometimes a thousand more percentage mark up.

2) Looks at things such as clothes: I remember seeing a jacket once that was retailed at, for example, $100. The next week it was "on sale" for $60. About a month later it was "retailed at $40-50, with like 40% off. True, they are wanting to get rid of it, but the initial cost versus what they actually accept for it, and that it probably costs less than $10 to make, is outrageous.

And this is true for practically everything we buy and/or consume, including healthcare. The mark up and profit margins are insane.

Back to the OP. I am not surprised it takes .06 cents to make chicken nuggets, lol. I am surprised that the "burger" or whatever takes as much as .77 cents.

edit on 4-1-2014 by Liquesence because: (no reason given)

I know some guy working at a refuse incinerator which convert the energy into electricity. He told me that from time to time, each year an entire clothing line of a major fashion designer is thrown into the fire. These manufactures rather burn their 'valuable' product than to give it to the poor...or sell it for a dime. This fashion include brand new 300$ shoes, leather jackets and so on...

Silicis n Volvo
reply to post by interupt42

 

I agree with healthy competition.

But adding 1000's of % onto markup is not right. It's greedy.

Its not greedy its business. Its greedy when you manipulate or influence$ the market.

People forget that it cost$ serious money in running a business and sometimes it even requires an owner to go into debt to make it during not so good times.

I have owned a small business with payroll and overhead (operating costs) in the $40K+ a month range. It only takes a small ripple (few bad months) to seriously effect your financial situation. You need to cover your @rse either wise you wont be business for long.

If you restrict the profit margin for business owners are you going to pay to help them get by during bad times?, are you going to cover the risks they take if they fail?, or you going to enforce minimum profit range ? or you only looking to punish them?

BTW , I agree a 4000% profit margin is excessive but that is not your typical profit margin either, especially for all products. Most likely a small business carries their majority of items that brings in people with a 10-40% profit margin that just cover your operating expenses and then you have a few inexpensive items that carry that high of a profit margin.

The only industries that have that high of a profit margin is likely the pharmaceutical industries who depend on patents and gov't regulations that enforce oligopolies. Going after the profit margin range is not the issue the real issue is the lack of competition AND anti consumer friendly laws created by lobbyist. If you have competition most business can't get away with 4000% profit ranges.

reply to post by tothetenthpower



To me it appears those are costs of product from McDonalds to the franchise. Actual cost is probably even less than that !

Remember when McDonalds use to be that place you can go when you're broke or on a tight budget. Those days are long over! I use to love McDonald's as a kid, but it's gone downhill, way downhill. Low pay to their employees who need to provide for themselves and their families yet charge even more money on burgers that are crap. And don't get me started on those damn Mighty Wings....

reply to post by interupt42


what a bout energy companies? Last year in britain when the reports came out we could see that they made billions in profit. But raised their prices more this year. Some by 9%.

All the excuses under the sun that they can come up with wont make me think that its right or necessary to do that.

In my opinion its extortion because we the customers dont really have much choice.

I'm talking about energy companies obviously you have the choice not to eat at mcdonalds. But my point is I understand business need to make profit and often prepare for rougher times ahead but some of the larger corporations in the world are borderline criminals by ripping us off to the extreme

reply to post by Silicis n Volvo


The problem with energy companies and most large corporations is that they have an Oligopoly in place and their influece$ on gov't allows them to control not only the market but the consumers as well.

The problem is not their profit margin its that they are allowed to legally bribe our officials via lobbying and other methods (donations, kickbacks, insider trading,etc) in order to get their way and eliminate competition. Versus allowing the market and the consumers to dictate what they want and them providing that service or product.

The GMO bill recently passed is a perfect example. The Big lobbyist convinced our politician$ that the consumers doesn't want to be informed if they are buying Genetically Modified Organism (GMO) in a lab versus a real steak , so they created a law to make it ILLEGAL to mark or identified lab grown meats as such . I don't know about you but I want to know what I'm buying and feeding my kids and most people that I know would prefer to know as well, yet they quickly passed this bill that is anti consumer and anti market friendly which is also going to wipe out the smaller mom and pop farmers.

We need to restructure the lobbying in this country in order to get back control of our gov't and make things better for us and the world.