The McDonald’s dollar menu.

A couple of years ago, it caused indigestion for the Golden Arches.

Due to commodity prices, franchise owners begged the mothership to squash the dollar menu.

So they did… but not completely.

McDonald’s isn’t dumb.

Instead of completely shelving the menu, they replaced it with “Dollar Menu and More.”

What is that?

It’s a clever way of phasing out higher-cost items (soda, fries) and replacing them with lower-cost items (ice cream cone, cookies).

The lesson?

An overlooked way to increase a customer’s lifetime value is by increasing prices.

When done correctly, price increases won’t lead to a customer exodus. Especially if you consistently wow them.

Besides, if you hold your prices constant for too long, you’re losing money. Inflation is a real thing.

Many think of marketing as slashing prices, but it can be just the opposite.

Are there any price changes you need to make?

Thanks to The Daily Egg for the McDonald’s insight.