the difference between cost and what you PAY.
Going to a movie? 192% markup.
Grabbing a popcorn – 900% markup.
Whew… need a soda?
FOURTEEN HUNDRED PERCENT MARKUP.
Those are just three examples of items on which people pay a huge markup price.
Today I'm going to open your eyes to the markup prices of clothing, accessories, and other items – so that you can make better buying decisions and save money.
Let me be clear – I'm a businessman. I get that companies need to mark things up to make a profit (and that's a good thing.) But if you understand markup pricing as a consumer you can use this information to negotiate, look for deals, and save money. Read on to find out how.
In terms of markup pricing – custom suits are pretty cheap. They're only about 100-200%. Designer suits are 200-400%. (The difference between custom and designer is that custom is made for the individual – designer is made for the mass market.)
Fragrances can be anywhere from a 100% to 500% markup. Designer shoes on average get a 354% markup. Designer JEANS are the most expensive with a 650% markup.
Next up, let's talk about jewelry – rings, necklaces, cufflinks, watches. What we see here is anywhere from a 200% to over a THOUSAND percent markup. Gold often gets a higher markup than steel or silver – and precious stones have the highest markup of them all.
And the highest markup in menswear – a 1329% markup – goes to designer eyewear. That's right – glasses and sunglasses.
#2. Travel Expenses
So you're about to take a trip – let's talk about the markups you'll run into. That airline ticket? A 388% markup. Traveling internationally? Let me add another 100-200% markup.
Hotel minibars? A 400% average markup (yes – that small bag of M&Ms is ten dollars.) Forgot your phone charger? You'll pay a 672% percent markup on that essential item.
Still haven't bought the tickets for that concert you want to attend? Oh – looks like it's sold out. A 2873% markup from list price.
And last but not least, texting – the most marked-up item for a busy traveler. If you've just blown through your data plan and you've got to pay per text, that's a 5961% markup. Obscene!
#3. Mark-Up Pricing On Drinks
Need a drink after all that? You order a bottle of wine – that's a 400% markup. Too much for you? Why not just have a glass? Maybe not – that glass has a 400-800% markup.
What about if you just go with a beer? A domestic beer. Guess what – that's a 694% markup. A mixed drink? An 1150% markup.
Gone off alcohol? How about a soda? Fine. That's an 1150% markup as well. A coffee? 1000% – and that's for a plain coffee. If you go for a nice mocha you're looking at closer to a 3000% markup.
So what do you think – can drink markups get any more absurd? The answer is yes – topping the list, coming in at 2,000 to 4,000 percent depending on how you buy it, is… bottled water.
#4. How Students Get Ripped Off
How much profit are companies squeezing out of you hard-working students? Textbooks on average have a 163% markup – not bad, right? Next up, we've got printer ink coming in at a 300% markup.
Need a table for your apartment or a bed for your dorm room? You've got a 400% markup on furniture. That fancy TI-83 calculator that does all that graphing for you? An 892% markup.
And it gets better. When you graduate you've got to buy a cap and gown – at a markup of just over 1,000%.
But all this pales in comparison to the markup on prep classes. Classes to get you ready for the GRE, the SAT, the ACT, or the GMAT. There is a 3082% markup on these classes. Not too bad… right?
#5. Wow… Just Wow
Your funeral casket has a 350% markup. Not too bad compared with everything else we've seen.
Calling a psychic hotline apparently has a markup of 9186%. I'm not sure what to think about that.
And wrapping things up – we've got healing crystals at a 2, 493, 828% markup. And they did calculate that. Sounds legit… right?