Overdraft's Secret Sauce Created by m.moebs on 6/11/2023 2:44:58 PM McDonald’s secret sauce is a winner for the Big Mac, making it more than just a hamburger.
What is the winning Big Mac secret sauce for checking accounts?
This story shows the overdraft limit is checking’s secret sauce.
Below, you can read how to do it.
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Semper, Mike
OD Revenue is Driven by More than Price.
“Overdraft Volume is the key to maintaining pre-COVID OD Revenue.”
Michael Moebs, Economist, CPA & Chair of Moebs $ervices, LLC (M$) a Private Financial Service Research Firm.
Lake Forest IL (June 11, 2023) The basic economic formula works for overdrafts: Price X Volume = Revenue.
Examples: Pre-COVID: $30 X 120 = $3,600 Post-COVID: $15 X 240 = $3,600 Beyond COVID: $15 X 360 = $5,400
If the price is cut 50% for any good or service, volume will increase often in proportion and greater.
McDonald’s advertises their secret sauce makes their hamburger, especially the Big Mac, taste better. This marketing promotion has substantially increased McD’s revenue.
In the overdraft business the secret sauce is the OD Limit. With the OD price falling to $15, financial institutions (FIs) who dropped their price are maintaining revenue with much higher limits since the consumer is resting easy doing more ODs at a lower price. READ FULL ARTICLE
