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Why do ten McNuggets cost the same as twenty? | Random Directions

Even if McDonalds makes little to no money selling you their 20pcs Nuggets at the same rate as 10pcs, you’re in the store now. The high-sodium McNuggets combined with strongly flavored dips might encourage you to buy a drink or some fries, both of which are higher margin products.

Yet this too, doesn’t make a lot of sense. Shouldn’t McNuggets be a high margin product in and of itself? Burger King recently decided to sell 10pcs nuggets for $1.49, implying that the nuggets themselves don’t cost that much to make. Perhaps it is a classic case of penetration pricing, but it just doesn’t seem right that with huge economies of scale, McDonalds isn’t making a good margin from their McNuggets.

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Random Directions: Why do ten McNuggets cost the same as twenty?.