Comments on: Tricks of the trade…outrageous markups? http://financefreelancelife.com/2007/10/16/tricks-of-the-tradeoutrageous-markups/ Fri, 19 Mar 2010 13:56:41 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Andrew Stevens http://financefreelancelife.com/2007/10/16/tricks-of-the-tradeoutrageous-markups/#comment-358 Andrew Stevens Wed, 17 Oct 2007 16:37:41 +0000 http://financefreelancelife.com/?p=116#comment-358 Most consumer goods don't have retail markups anything like that. (You can only get away with that sort of thing if you've got a captive market.) The worst are probably greeting cards where a 100% suggested retail markup is common. (Just about anything you might find in a gift shop has a huge markup and has to have for the gift shop to stay in business.) Breakfast cereal used to be pretty bad (everybody used coupons back then), but I think that changed back in the early '90s. By the way, gas probably has the lowest retail markup of anything you might find in your local convenience store. You want my opinion? Don't sweat the markups. What matters isn't how much profit the other guy is making, but ensuring that you're only paying what it's worth to you. If you're paying less than it's worth to you (which should be the case on every single purchase), then you're doing fine even if the other guy is making a mint. Most consumer goods don’t have retail markups anything like that. (You can only get away with that sort of thing if you’ve got a captive market.) The worst are probably greeting cards where a 100% suggested retail markup is common. (Just about anything you might find in a gift shop has a huge markup and has to have for the gift shop to stay in business.) Breakfast cereal used to be pretty bad (everybody used coupons back then), but I think that changed back in the early ’90s.

By the way, gas probably has the lowest retail markup of anything you might find in your local convenience store.

You want my opinion? Don’t sweat the markups. What matters isn’t how much profit the other guy is making, but ensuring that you’re only paying what it’s worth to you. If you’re paying less than it’s worth to you (which should be the case on every single purchase), then you’re doing fine even if the other guy is making a mint.

]]> By: Mrs. Micah http://financefreelancelife.com/2007/10/16/tricks-of-the-tradeoutrageous-markups/#comment-357 Mrs. Micah Wed, 17 Oct 2007 14:54:08 +0000 http://financefreelancelife.com/?p=116#comment-357 @ Hilda, definitely. I only buy from vending machines a few times per year because it's ridiculous. They charge more for a can of soda than I can (probably) spend on a 2-liter bottle! @ Tim, I'm with you there. When I can, anyway. @ Hilda, definitely. I only buy from vending machines a few times per year because it’s ridiculous. They charge more for a can of soda than I can (probably) spend on a 2-liter bottle!

@ Tim, I’m with you there. When I can, anyway.

]]> By: Tim R. http://financefreelancelife.com/2007/10/16/tricks-of-the-tradeoutrageous-markups/#comment-356 Tim R. Wed, 17 Oct 2007 14:18:56 +0000 http://financefreelancelife.com/?p=116#comment-356 I would have to say.... everywhere. Having recently moved from the business world to the non-profit sector, I can tell you that unreasonable mark ups where one of the reasons I was looking to get out of the business sector. I would have to say….

everywhere.

Having recently moved from the business world to the non-profit sector, I can tell you that unreasonable mark ups where one of the reasons I was looking to get out of the business sector.

]]> By: Hilda http://financefreelancelife.com/2007/10/16/tricks-of-the-tradeoutrageous-markups/#comment-355 Hilda Wed, 17 Oct 2007 05:51:29 +0000 http://financefreelancelife.com/?p=116#comment-355 I have one: vending machine items. They're not as outrageous as the overtime HVAC price but the mark up on those things are still at least 100%. I have one: vending machine items.

They’re not as outrageous as the overtime HVAC price but the mark up on those things are still at least 100%.

]]>