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re: Mark up on every day products
Posted on 11/7/16 at 3:39 am to ATL-TIGER-732
Posted on 11/7/16 at 3:39 am to ATL-TIGER-732
quote:
That may be the cost of the dough but you have to factor in the cost of the oven, electricity/gas to heat it, the cost of the building, labor costs, operating costs (insurance/taxes etc) and the a/c to cool the building because the oven is hot.
+ Marketing.
How about Nike shoes. They make them in Vietnam and pay less than $1 labor per shoe. Perhaps a few dollars in material. Lebron + Durant Nike contracts $50mil/yr!
NIKE
2015 Sales revenue $30.7bil, Net Income $3.27bil
0
Posted on 11/7/16 at 3:43 am to weagle99
quote:
glass of sweet tea at a restaurant has to be the most profitable thing in the world.
And a glass of water is least profitable.
Consider the cost of cleaning it, ice machine, and all the lemons yall put in it.
Posted on 11/7/16 at 5:05 am to cfa626
Sounds like that restaurant doesn't understand the supply and demand concept.
Posted on 11/7/16 at 6:17 am to Teauxler
The spoilage rate on bread is high. Margin takes a huge hit when you thow away 30%.
Posted on 11/7/16 at 7:01 am to Teauxler
Fountain Drinks are very profitable. That why when Burger King, McDonald's has an offer for buy a Large drink at menu price get a Super Big burger for .99$ that's because they made their money on the drink that cost them .13$ to make. Same as fries, a 40lb case of french fries is around $20, that's a lot of fries, they are very profitable.
Electronics, furniture and jewlery all have high markups as well.
Electronics, furniture and jewlery all have high markups as well.
Posted on 11/7/16 at 7:12 am to CHEDBALLZ
Furniture is the one that pisses me off. Its so incredibly cheaply made and so incredibly expensive and women just eat that shite up. This one costs 4x as much as that one so it must be 4x better right?
NO YOU DAMN STUPID WOMAN ITS THE SAME PIECE OF shite SWEATSHOP CABINET WITH A DIFFERENT FINISH frick
NO YOU DAMN STUPID WOMAN ITS THE SAME PIECE OF shite SWEATSHOP CABINET WITH A DIFFERENT FINISH frick
Posted on 11/7/16 at 7:33 am to DownshiftAndFloorIt
Back in the day, I used to buy car chargers for cell phones @ $1.90 and sell them for $19.00. 
Posted on 11/7/16 at 7:37 am to Teauxler
Kroger and Kohls are master marketers. They offer all types of discounts to customers, including layers of coupons, but still make huge profits.
It's all in marketing.
It's all in marketing.
Posted on 11/7/16 at 7:39 am to Teauxler
Bottle of water at an airport. You can't bring it in so they can charge whatever they want.
Bottle of water = $4...they are making nearly 100 bucks on a $4 case of water.
Bottle of water = $4...they are making nearly 100 bucks on a $4 case of water.
Posted on 11/7/16 at 7:41 am to kywildcatfanone
My father worked in women's fashion / retail and it was well known industry wide that women's perfume was far and away one of the highest markup items in any industry.
The actual perfume is brewed in huge vats and sold a couple of ounces at a time. The fancy bottle and box actually cost more than the product by a factor of 10. The final mark up is stupid.
The actual perfume is brewed in huge vats and sold a couple of ounces at a time. The fancy bottle and box actually cost more than the product by a factor of 10. The final mark up is stupid.
Posted on 11/7/16 at 8:23 am to Teauxler
They are not making Leidenheimwr's in house. I will pay whatever the price is for that French bread.
Posted on 11/7/16 at 8:32 am to Teauxler
Sno Cones! Years ago I ran a couple. Back then, the cost was literally about 3 cents. Factor in the minimum wage labor and you were still in single digits even for the largest that we sold.
Posted on 11/7/16 at 8:35 am to Bullfrog
Something that people are willing to pay $1 for can be more valuable as a company than something that people are willing to pay $10million for.
Also, when you're talking about items that are mass produced, companies will spend millions on production upgrades to save a penny or less per unit produced.
So yea, it kinda matters how much it cost to produce a product/service.
This post was edited on 11/7/16 at 8:36 am
Posted on 11/7/16 at 8:40 am to Teauxler
quote:
They make it in house for 6 cents. Just wow !
someone doesn't understand business. cost of the raw materials is just one small part of total cost
advertising
labor
utilities
land and building
insurance, legal, accounting
equipment
admin
etc etc etc
"The average supermarket has a profit margin of about 1 percent, according to Stacey Vanek-Smith of National Public Radio. Some experts suggest this figure might be as high as 3 percent"
Posted on 11/7/16 at 8:40 am to Napoleon
Agitator dogs for my washer was $5.00 bought at a local washer/dryer parts/service shop. I replaced them at no labor cost - 10 mins DIY. 
Posted on 11/7/16 at 8:01 pm to Teauxler
I would love to know the profit margins in the funeral business !
Posted on 11/7/16 at 8:04 pm to Teauxler
A dying business.
Posted on 11/7/16 at 8:12 pm to Teauxler
I want to see there was a country (not America) that was looking into price gauging on razors. Nice razors go for like $30-$40. The razor blades are made for around 5¢.
Posted on 11/7/16 at 8:19 pm to Teauxler
The cost of razors makes me mad
Posted on 11/7/16 at 8:31 pm to shel311
quote:I disagree.
So yea, it kinda matters how much it cost to produce a product/service
If you can't sell something, it doesn't matter how expensive or cheap it is to make. So what if a loaf of French bread costs 6¢. People don't care about your cost but they'll buy it for $1.99 all day long because that is its value in the marketplace.
What you can sell something for, is what matters.
If your costs are less than that selling price, maybe you get to keep cranking widgets. But if they are not, you aren't going to be in business long.
And more power to the mass production company that can reengineer their processes to save a penny or so. Capitalism at work.
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