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re: Items that must have huge profit margins
Posted on 5/2/18 at 5:50 pm to weagle99
Posted on 5/2/18 at 5:50 pm to weagle99
French/Italian Bread costs about 3c a loaf to make and many grocery delis sell it for $1.99. Even WalMart charges $1.
Delis are huge profit centers for grocery stores; the profit margins for the groceries themselves are thin. That's why you virtually never see a grocery store w/o a deli.
Delis are huge profit centers for grocery stores; the profit margins for the groceries themselves are thin. That's why you virtually never see a grocery store w/o a deli.
1
Posted on 5/2/18 at 5:51 pm to slackster
Yeah, it's kind of the same thing as the ice tea. You have those syrup boxes that put out like a drink for a few cents, and they charge like $2-$3. More at movie theater and venue type places.
This post was edited on 5/2/18 at 5:52 pm
Posted on 5/2/18 at 5:52 pm to weagle99
$10 margarita at Superior Grill
Someone who used to manage there told me they cost $.50 to make. 95% profit margin is pretty damn strong
Someone who used to manage there told me they cost $.50 to make. 95% profit margin is pretty damn strong
This post was edited on 5/2/18 at 6:31 pm
Posted on 5/2/18 at 5:54 pm to Kafka
quote:
French/Italian Bread costs about 3c a loaf to make
How the hell can it be that cheap?
The flour that goes into it costs more than 3 cents.
Not to mention everything else
Posted on 5/2/18 at 5:54 pm to weagle99
Almost all WalMarts have been remodeled to place the clothes right next to the grocery area. This was done so people buying groceries (low profit margin) would want to impulse buy clothes (high profit margin)
Posted on 5/2/18 at 5:55 pm to slackster
quote:
quote:
Anything pharmaceutical
They're kind of a league of their own. The R&D is vastly more expensive than the product costs.
Most pharmaceuticals spend significantly more on marketing than R&D.
Posted on 5/2/18 at 5:55 pm to BaylorTiger
quote:
Anything pharmaceutical
Incorrect.
Antacid Tablets
Markup: 399%
Pain Relievers
Markup: 398%
Tylenol, has a 378% markup
from 87 cents wholesale to
$4.16 retail.
Vitamins
Markup: 395%
Condoms
Markup: 354%
Source
Posted on 5/2/18 at 5:55 pm to weagle99
Matresses
Posted on 5/2/18 at 5:56 pm to TheArrogantCorndog
quote:try $3-4 to make
Pizza... $1 to make
Posted on 5/2/18 at 5:57 pm to Buryl
quote:
Most pharmaceuticals spend significantly more on marketing than R&D.
Which isn't captured in production costs either. The point is people say a pill cost $.01 to make and is sold for $200 and it doesn't tell the whole story.
Posted on 5/2/18 at 5:57 pm to weagle99
Textbooks
Posted on 5/2/18 at 5:59 pm to heypaul
quote:Worth it in Canada
Tylenol, has a 378% markup
from 87 cents wholesale to
$4.16 retail
Posted on 5/2/18 at 6:00 pm to Peazey
quote:
If you don't consider r&d, which is expensive as frick.
While r&d of a new drug is rather expensive, the cost of production thereafter is pretty cheap. Successful drugs on the market make their money back and then some.
Posted on 5/2/18 at 6:01 pm to weagle99
quote:
A glass of ice tea at a restaurant. Costs $2.50 a glass and probably costs 5¢ to make.
That's the variable cost (aka cost per unit of product) and probably doesn't include the cost of the employee, insurance, benefits, etc. And the fixed cost (cost of just getting started) can be fairly large for some things.
Some people mentioned pharma as an example of this. A pill that sells for $100 might cost all of ten cents to make and ship to you, but the very first pill probably cost several hundred million to make in R&D. The reason the pill costs $100 is that someone estimated they'd sell enough pills to cover that. If they had estimated lower it would cost even more.
Airline tickets are similar. It costs an airline around $10-15 to fly a person domestically, but they have to pay for the airplane, which can cost a couple hundred million just to get to the gate for the first time. It's one reason why most airlines lease planes instead of buying them. Airline leasing companies in turn make money by spreading the risk across multiple airlines.
Posted on 5/2/18 at 6:01 pm to Sao
quote:
My home grown cubensis.
You're doing God's work.
Posted on 5/2/18 at 6:02 pm to BaylorTiger
quote:My two meds would be $1200/mo without insurance. 180 pills = $1200 = $6.66/pill
Incorrect
Posted on 5/2/18 at 6:02 pm to weagle99
quote:
Items that must have huge profit margins
Pickup trucks
Posted on 5/2/18 at 6:04 pm to foshizzle
Inaccurate about the airline pricing part and I would love to elaborate. Posting from portable device today, so I cannot at this time.
Posted on 5/2/18 at 6:05 pm to Hammertime
quote:
My two meds would be $1200/mo without insurance. 180 pills = $1200 = $6.66/pill
Diabetes.
Posted on 5/2/18 at 6:07 pm to TheArrogantCorndog
quote:
Pizza... $1 to make, sells for $15+
I used to manage a Papa Johns. Food costs there average between 25-30%, so that $15 pizza costs somewhere in the neighborhood of $3.75-4.50 to make.
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