Companies often sell their products at huge markups. While this makes purchasing some items more expensive, this is a cornerstone of capitalism that allows companies to keep their doors open for business.
If you have ever made a major purchase, you may have thought to yourself, “How much does it cost for the company to make this?” Well, financial news website The Street and LocalCashHelp with bad credit may have your answer.
Coffee and Tea
Although the price to important coffee and tea from places such as Latin America and East Africa has increased significantly during recent years, consumers still pay much more for these products than companies. In fact, the average cup of coffee, cappuccino or latte is sold at a 300 percent markup.
Instead of buying every individual cup from the store, you should try to brew your own at home. While a bag of your favorite coffee might seem expensive, some simple math will show you that you are actually saving a substantial amount of money.
How much is too much for a pair of jeans? $100? $200? Well, Italian designer Gucci sells a pair of jeans that sells for $665. The average pair of jeans costs roughly $50 to produce, which equals nearly a 1,200 markup.
Shopping a discount retailer for these pants can keep considerable amounts of cash in your pocket.
Furniture And Mattresses
Household items, such as couches, chairs and beds are often sold at an 80 percent markup. If you have a large family, this expense can really add up.
Instead, try to purchase these items during sales and never be afraid to try to negotiate. Some stores are more than willing to negotiate. Even if they won’t budge on the price, you may be able to get other perks, such as free delivery, included in the transaction.
Makeup And Cosmetics
Average cosmetics are sold at a 78 percent markup. However, because these companies often hire celebrities to endorse their products, consumers are more than willing to open their wallets.
Rather than break the bank of these items, go to your local department store and ask for free samples. Employees will probably be more than happy to accommodate your request.
If products and services with significant markups have added pressure to your budget, don’t worry. You may be able to use cash loans to deal with any unexpected bills that threaten to push you over the edge.