How come the milkshakes are so expensive

The price of milkshakes or any other product is determined by several factors. These include the cost of ingredients, labor, overhead costs, and the desired profit margin. Additionally, companies like McDonald's also consider the perceived value of their products. If customers are willing to pay a higher price for a milkshake because they perceive it as a premium product, McDonald's may price it accordingly. Furthermore, pricing can also be a part of the company's overall strategy. For instance, they might price some items lower (like their soda and coffee products) to attract customers and then try to upsell more expensive items like milkshakes.

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In order for McDonald's to stay in business in so many countries around the world, it uses a "think global, act local" approach. The company's global HQ sets pricing parameters with specific guidelines and tactics for each region. Each region has its own pricing determined by demand, cost, and local competitor offerings in that region. McDonald's will even adopt the products it offers to whatever country it's in. It will serve rice and fried chicken in the Philippines, Beetroot burgers in Australia and poutines in Canada, to name a few. Even still, McDonald's soda and coffee products are some of its most profitable, so its goal is to upsell drinks to customers.

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Competitive Strategies

Do you feel trapped to outdo competitors? Better strategies can build a stronger defense against competition and generate higher ROI on your strategic...

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