How do McDonald's, KFC, and Burger King maximize profits through pricing?

There are four customers. The highest price the first customer is willing to pay for a hamburger is 25 yuan, the second customer is 20 yuan, the third customer is 15 yuan, and the fourth customer is 10 yuan. The cost of the hamburger is 5 yuan. How to set the price to get the maximum profit?

This is a question I asked before and received hundreds of replies. Today, let’s use hamburgers to talk about product pricing, which is the pricing part of the 4P theory of marketing and is very important.

Of course, this problem does not exist in reality, because real business is much more complicated, and no customer will be stupid enough to tell you that he is willing to pay 25 dollars for this burger, even though your menu says each burger costs 15 dollars.

So let's go through this question step by step, and you'll see some real business cases.

1. College Entrance Examination Mathematics Questions

We have greatly underestimated the IQ of high school students. It is impossible for the college entrance examination to have such simple arithmetic problems.

If it were just a matter of arithmetic, the answer would be simple.

If you set the price at 25 yuan, there will only be one transaction, so you will make a profit of 20 yuan.

The price was set at 20 yuan, there were two transactions, and the profit was 30 yuan.

The price was set at 15 yuan, and there were three sales, but the profit was still 30 yuan.

The price is 10 yuan, all four will be sold, and the profit is 20 yuan.

Of course there may be other pricing options, but if you can calculate, the highest profit is only 30 yuan.

If you want to do less work, then choose to set the price at 20 yuan and make two burgers, which will give you the highest profit.

There is no other answer, don't worry about it, this question is very simple.

2. KFC Deluxe Lunch

Can we really only get a profit of 30 yuan?

Fortunately, corporate marketing is not about math problems. We have many ways to help us gain higher profits.

KFC's deluxe lunch is an example: the price of the regular set meal is different from the price during the working lunch period, and the deluxe lunch is much lower.

Let's simplify the calculation of the luxury lunch, still assuming that there are only 4 customers, and assuming that we know the highest purchase price in the minds of these four customers (as mentioned earlier), and these four customers are ABCD.

How would I price my burgers?

I would design the pricing policy like this: a hamburger costs 25 yuan on weekdays or holidays, and a hamburger costs 15 yuan during lunch time on weekdays.

Then, A will complete the transaction during normal hours, bid 25 yuan, and make a profit of 20 yuan; B and C will complete the transaction during the working lunch period, each making a profit of 10 yuan, and sell two, with a profit of 20 yuan, so I can make a total profit of 40 yuan.

Is A a victim of persecution? no.

A gained the freedom to choose his or her time and not have to endure the crowds and queues during the work lunch period.

3. McDonald ’s coupons

Of course, human business wisdom is more than just a fancy lunch.

Why does McDonald's give out coupons for a long time but never offer discounts? This is also a pricing strategy.

Because McDonald's