In October, McDonald's had a "Monopoly" advertising program which mimicked the original treasured board game. When a customer bought certain products on the menu (for example, large fries), there would be two stickers on the food item that, if peeled, revealed monopoly properties. If a customer won some of the rarest monopoly pieces, there was a potential to win big prizes such as an Xbox or even money, in the value of a million dollars.
However, this article shows that although a million dollars may seem like a lot, over time, the amount paid to the winner is not a million dollars exactly. Since the reward is paid in annuity payments of $50,000 over twenty years, the resulting money is not as much as it seems. Say that the inflation rate is 3.5%. After taxes, and going by the $50,000 per year that McDonald’s pays its winners, the total value would be around $500,000. McDonald's organized this advertising program in the hopes that many people would not take the time to actually think out the economics of its money prizes, and understand the slim possibility of winning the game.
Would you play the monopoly game at McDonald's? Does the monopoly advertising motivate you as a consumer to spend your allowance at this fast food restaurant in the hopes of winning?
-Molly Cheng
Mr. Bear Thinks We Need an Open Thread
3 hours ago
9 comments:
I don't like to play this game because the chances of winning are so slim. And, on top of that, if you win there's always a catch, like Molly pointed out. I've experienced something similiar to the monopoly example. Over the summer, my brother won some jackpot bingo on vacation (don't judge). The initial amount that was announced was not the same amount that we received. We actually ended up getting 2/3 of what we thought we would win because of taxes and tips. It was still a big amount of money, but it was a little disappointing. I get that McDonald's and casinos and such must tax large sums of money, but it isn't too fair that they get to bring winner's hopes up.
Wow I never thought of it that way. Plus, you would probably have to pay HUGE taxes on that million dollars if you won it. I guess things that seem to good to be true truly are that way.
I had never understood the meaning behind those games at used at McDonald's as advertising strategies. And anyways, if I even still went to McDonald's (which I don't; BK FTW...), I wouldn't really waste my time or money on that. I'm more of a realist, in the aspect that I don't believe I would have a chance at winning so I would rather use my money for food.
I must admit, though, that that is a rather nifty advertising strategy since not everyone would question games like these since McDonald's is so well known. Not to mention, not everyone knows how every aspect of the economy works.
-Annie Yang
I think what McDonald's did actually happens more often than people realize. Whenever a person has a chance to win prize money through anything from McDonald's Monopoly, the lottery, casinos, game shows, etc., there are always taxes and other fees that the winner must pay, and the actual amount that they receive is never as much as advertised. And, the winner never gets the amount paid in full, they usually receive it in payments, like Molly stated in her post.
These types of advertisements that offer the chance to win "big" money if a consumer buys products is just another clever marketing scheme that traps many Americans every year.
I personally wouldn't waste my time/money on stuff like this, the chances of winning are very unlikely, and you never even hear about who wins most of the time, and I don't know anyone who is personally acquainted with someone who has won large sums of money in these manners.
Wow,I have never really thought about it that way before.Not that I play. But after reading your post, Molly, I can really see what you mean by the chances of winning being so slim. It makes me wonder why so many other people can play monopoly and think they can actually win an X-Box. I guess there's always a catch to it. MacDonald must be getting a lot more than they will actually give out.
It is very interesting. I don't really play these games because why would a business that is selling to you want you to benefit. They just want you to spend money on their products. I also imagine that McDonalds needs to find ways to improve their business since I have recently read an article on how their revenues have been lowered recently. The economy has hit McDonalds too.
I personally never trust these kinds of games, because the McDonald's company is really trying to get people to buy more fries, which can make them more money. not only do the customers pay the extra few dollars to buy the large meals so they could play the game, but the quantity of customers that purchase the bigger fries also goes up, making McDonald's bigger profits.
Awww that's such a bummer. I remember they had this Monopoly game a couple years back as well ... and I remember going out of my way to buy an extra-large soda or a burger that had the Monopoly sticker. But then again I remember wanting the stickers just because it was fun to peel off. I never really gave thought to the whole winning money process. Either way the article shows how much of a rip-off winning can be.. it makes me feel like quite a fool.
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