Regardless of how educated we may be as consumers, we all know that retailers charge more for products and services than what it cost them. Building in a profit margin to a price is Capitalism 101: companies need to earn profits to stay in business and their prices are determined by what we are willing to pay.
We are often willing to pay the high markups out of the convenience of not having to do the labor or create the goods ourselves. But just how much are those prices marked up? And if you knew just how much those prices were marked up, is the convenience still worth the price tag?
The infographic below illustrates the markups on 37 products and the numbers are not for the faint of heart. Take beverages as an example: the price of wine in a restaurant has a markup of 400% while coffee gets marked to 2,900% more than its worth!
If you’d rather not know just how much you overpay for some of your everyday purchases, look away. But if you want to make informed and empowered choices when you fork over your hard-earned cash, then check out the infographic below to decide whether these prices are fair and reasonable or if it is in your best financial interest to find an alternative.