10 Outrageous Markups You’d Never Guess You Were Paying
Sticker shocker: You might not think much about how products are priced, but we did the math to calculate how much you’re spending.
1. Text messages: 6,000% markup
Phone users commonly pay 10 cents per text message, but sending the message only costs the carrier a sixth of a cent. If the phone company applied text-message mark-up to a short phone call, you’d pay $120 for the call.
2. Movie theater popcorn: 1,275% markup
Theaters know that viewers will pay more for movie snacks, so they hike the prices up: A bag of popcorn that costs 37 cents to make can easily sell for $5. One man in Michigan found the price so outrageous that he’s suing his local theater.
3. Brand-name drugs: 200 to 3,000% markup
You may feel more comfortable buying brand-name medicines, but know what you’re paying for: A bottle of Advil may run for $10, compared to just $2 for generic painkillers that are just as effective.
4. Coffee on the go: 300% markup.
A $2 cup made by a barista would cost just 50 cents to brew at home.
6. Bottled water: 4000% markup
A $2 water bottle costs the manufacturer only about 5 cents to make.
7. Wine at a restaurant: 300% markup
Restaurants routinely charge as much as $30 for bottles of wine that retail online for $7 or $8. Check if the restaurant allows BYOB in advance, or opt for a non-alcoholic beverage.
9. In-room hotel movies: 200% markup
Renting a movie usually costs a few dollars at most, but do it through your hotel and you’ll easily pay $10 or $15.