What makes up the cost of my insurance?

Two all beef patties

Special sauce

Lettuce

Cheese

Pickles

Onions

On a sesame seed bun

Remember singing the song?  There were ads and contests of people trying to sing it and say it as fast as they could.  It ain’t easy!  But it is well known.

When the Big Mac originated in Uniontown, Pennsylvania in 1967 it went for 45 cents.

Today, a Big Mac goes for around $4.00……with the same ingredients.  Wow!  Haven’t had one in a while….honest!

So think about what your $4.00 is paying for when you buy a Big Mac.

Let’s break down the cost of what goes into it:

….in other words, what does McDonald’s have to pay for in order to put the Big Mac together and to deliver it to you while you are in your car at the drive-thru or at the “window” as it is professed at Hamburger U and known to McDonald’s crew…..for everybody else it’s the counter where you walk up to order inside the restaurant.

Two 1/8lb ground beef patties, seasoned with salt & pepper

An ounce of something close to thousand island dressing

An ounce or so of shredded lettuce

One slice of American cheese

Two pickle slices

A teaspoon or so of minced onions

A sesame seed covered bun, with three parts

Ok, for you accountants, you know that the items above make up what is known as COGS, or Cost of Goods Sold – basically, non-overhead input costs.

Now we have the rest of the cost of your Big Mac, which includes, but is not limited to:

The box it goes into

The bag it goes into

The people who cooked the meat and prepared the buns with condiments etc.

The person who took your order and payment (or the kiosk)

The person who delivered your food on a tray or in the bag

The napkin dispensers

The lights and air-conditioning or heat in the seating area and Playland

The electric, gas and water in the kitchen area

The freezer

The truck and truck driver that delivered the food and supplies to the restaurant

Ronald McDonald, Hamburgler, Mayor McCheese and Big Mac

All of the sponsorships McDonald’s has around the world

The sprawling campus in Oak Brook, Illinois including Hamburger University

Larry Bird and Michael Jordan playing  H-O-R-S-E for a Big Mac

And much, much more…

Now, think about what goes into the cost of your health insurance.

You have no idea.

You can’t see it.  You can’t touch it.  The insurance company doesn’t have a song for it.

Stick with me and learn how your health insurance is priced.  It’s important and you need to learn, so you don’t have to spend more!

If you do it right, you might have enough saved to open your own McDonald’s.

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