The Herald Bulletin

Morning Update

Columns

October 1, 2013

Emmett Dulaney: Sandwich costs more on east side?

One of the more clever indices used to compare countries is the Big Mac Index. Since 1986, this ratio has been used to compare the exchange rates between countries and see if the currencies are correctly valued.

For example, if a Big Mac costs $4 in the United States, then you should be able to convert $4 to the currency used by another country and – theoretically – that is what the Big Mac should cost in the other country.

If the values don’t align, then the currencies are either valued too high or too low to one another. One major problem with this line of comparison is that it is difficult to arrive at an answer to a very base question: What is the price of a Big Mac?

Over the Labor Day weekend, I collected pricing information at the drive-thrus in the area. One might think that prices would be consistent between locations, but they would be wrong. A Big Mac sandwich varies by 3 percent based upon whether you are purchasing it near the interstate (both the 5233 S. Scatterfield and Daleville locations) or away from the traffic (2014 N. Scatterfield, Downtown, and Broadway locations) and the price of the Big Mac value meal – you almost always want a drink and fries to go with it – fluctuates by a dime.

The Big Mac choices are far from the only menu item on which prices vary, and the one that is the most noticeable is the Southern Style Chicken Sandwich meal, which can differ by up to 5 percent. If you purchase the meal at 2014 N. Scatterfield, it will run you $5.69. If you drive Downtown or to Broadway, the price climbs to $5.79. If you order at the 5233 S. Scatterfield or Daleville locations, the price jumps to $5.99.

From a marketing standpoint, one of the most notable gurus in the marketing field, Philip Kotler, would be pleased by the variations in price and has often commented that one of the most common mistakes in the marketing mix is that “price is not varied enough for different product items, market segments, and purchase occasions.”

Text Only
Columns
Featured Ads
More Resources from The Herald Bulletin
AP Video
Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

Do you think Madison County and its cities need stricter pet ownership laws?

Yes, animal abuse is rampant in our area and something needs to be done.
Yes, but it may not help. It’s difficult to enforce such laws.
No, the laws are fine as they are.
Not sure
     View Results