The Truth About Markups

Posted on February 2nd, 2012 by Discount Debbie

Markup: noun
Definition: The amount added to the cost price of goods to cover overhead and profit.

The truth is almost every product you come across will have a markup in it’s price. That’s how companies make money and keep rolling out the goods. But have you ever wondered about those markups and how much they really are marking products up? I know I have so I did some research. These may shock you!

1. Bottled water.

4,000% markup. My brother made a joke one time. He said, (in a French accident no less) “Those naive Americans, they drink our tap water.” He was talking about Evian and in case you missed it, it does spell naive backwards. With a 4,000% markup and the fact that you are drinking municipal water 40% of the time leads me to bring my own bottle and fill it up.

2. Movie buttered popcorn.

I can hear my mom right now. “I don’t care if they charge me $50, I am having my movie popcorn,” she would say. My mom will go to the theater get popcorn and take it home. She really loves it that much. I am not that extreme, but I do love me some movie popcorn. But with a markup of 1,275% you’ve got to really want it or at least understand that there may be no substitute for it.

3. Coffee.

I think most everyone knows that coffee places like Starbucks are marking up their products by as much as 400%. And with that information, you may want to check out a blog from a while back that we posted about making your own specialty coffee.

4. Pre-cut veggies and fruits.

Here is an easy one you can almost always avoid. This 40% markup can easily be avoided with a little prep time and planning. Don’t let someone else cut up your produce. Do it yourself and save the 40%.

5. Sodas in a restaurant.

According to Toptenz.com, “A 12 ounce glass of soda costs the restaurant nickels, but it is sold for dollars; and it is half filled with ice! It’s no secret that you can buy a soda from a soda machine for between fifty and seventy five cents and that same soda will cost $2.75 in a restaurant.” I am not sure this will make me cut out our soda habit, but if my mom takes us out for dinner, she always looks to see how much they charged her for a soda and if we drank it!


3 Comments

  1. Brooke Westmoreland February 2, 2012

    I like this post because it shows the truth, but it annoys me greatly at how much I am getting ripped off everywhere!!!!!!!!!

  2. Christina February 2, 2012

    Not that I didn’t already know about the ‘markups’, but wow still impressive to see the numbers.

  3. Delana Coley February 2, 2012

    Loved the info on markups. Never knew it cost that much extra until I read about it here. Thanks for all of the saving knowledge you give.

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