Many commodities are highly marked up. You may blindly pay $5 for an item that costs only 20 cents to make. But why do we do this? Maybe because of the package, convenience or it is appealing to the eye.
Look at the examples below;
The favorite beverages carry the heftiest markups. Are you aware that for the price of a single bottle of Evian bottled water, you could pay for 1000 gallons of municipal tap water?
Coffee is another case. Making coffee at home can cost you between 25 and 50 cents a cup. But if you were to buy the same cup at Starbucks you could pay $3 a cup.
The worst case is that of wines in restaurants. The average retail markup on a bottle of wine here is 300 percent.
Diamond and gold are marked up between 50 and 200 and 100 and 400 percent of whole sale price respectively.
Wedding dresses are marked up at 100 percent of the wholesale price, and that wedding night lingerie carries a 200 or 300 percent markup.
And you know what? A slice of a decorated wedding cake will cost you around five times the price of a whole box of cake mix prepared by Betty Crocker.
At the grocery
Living a healthy lifestyle by purchasing at the grocery store means big markups on organic fruits and vegetables. The average price of an organic produce is 50 percent more than regular supermarket fruits, and it is 100 percent for organic milk and meat.
And when you buy a bag of pre-cut apple slices, you will pay about 75 cents more per apple for the luxury of not cutting it by yourself.
Clothing and accessories
If you like brand-name clothing, you are in for a big shock. The average markup on clothing is 250 percent and 350 percent for accessories.
Jeans are the worst culprits. For example, a pair of jeans from Kohl’s still has a 112 percent markup from wholesale, while a pair of designer jeans from True Religion has markups of up to 300 percent over the cost.
And for eyeglasses, some opticians charge up to 1000 percent over wholesale price for designer frames.
The snack food stuff you find at state fair, in a movie theatre or along the boardwalk are incredibly expensive.
Popcorn are marked up by up to 1300 percent a bag especially in movie theatres. The sellers know that the customers have no option that’s why they hike the prices.
The comfort that you enjoy in your hotel room comes at a price. This is more so if you want to be served from your room. A small bag of potato chips will cost four times the price at the retail store, and a half bottle of Skyy Vodka costs 200 percent more than the price at a liquor store.
If you order an in-room video be ready to pay up to $15 for a movie that that would cost you only $1 from Redbox. Netflix subscription costs only a few dollars per DVD.
Other areas with crazy markups include brand-name drugs, college textbooks, funeral services and cosmetics.