5 Products With Insane Mark Ups
Posted by Ken | Filed under Ken
I understand that in order for retailers to make a profit, a certain amount of product markup is required. However there are a few items out on the market today whose markup truly blows my mind…
Bottled Water: %4000 markup
Have you really given bottled water a think? The stuff you buy for $1 a bottle? That’s the equivalent of $2.00 per litre! It’s a good thing your car doesn’t run on bottled water or else you’d be in the poor house. If you buy into the idea that fancy water is superior, then give your head a shake. We are beyond fortunate to live in a country where clean water comes from a tap. Get yourself a re-useable water bottle.
Concessions: %1275 markup
I’m sure you’ve noticed the simply ASTRONOMICAL price of food and beverages at movies, concerts and sporting events. According to Yahoo Finance, Movie theater popcorn has an average markup of 1,275 percent (a popcorn and a soda has the same number of calories as three Quarter Pounders, btw).
4. Coffee: 300% markup
That trip to Starshmucks is going to cost you. Maybe you can’t get through your day without a Venti, Non-Fat, No Foam, No water, 6 pump, extra hot, chai tea latte but just know that the markup on coffee can total as much as 300 percent. If you’re looking to save, dust off your home coffeemaker and bypass the coffee shops altogether.
Cables: 80% markup
You know the audio-visual cables you pick up at your local electronics store? It enrages me that a product that costs no more than a few dollars to produce can cost upwards of $180.00. My Advice: buy as generic as possible and search online (ie. EBAY) for more reasonable prices.
Computer printers are what are known as “Loss Leaders.” The retailer looses money on the initial sale but recoups its losses based on the fact that you need to keep coming back to purchase ink cartridges (video game consoles also fall under the Loss Leader category). According to DataGenetics, in an ink cartridge that costs $16.99, there is approximately 19millilitres of ink. That works out to about $894.00 per litre! For computer ink!!! My advice is to go with a laser printer. You’ll pay more up front but the cartridges last significantly longer.
What markups make you insane in the brain?
‘Til next week,
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