Products That Customers Don't Realize Have A Really High Mark Up
Reddit user petrastales asked: 'What product unbeknownst to most people has the highest mark up?'
When I was in high school, my friends and I went to a pizza place after school nearly every day. In addition to a slice of pizza, we would each buy a soda. The place offered free refills (this was back when not all places did this), and we thought it was really cool. However, I used to wonder why they would do this. Wouldn't it be more profitable to them if they forced us to buy a second drink?
Four years later, I began working in a restaurant and learned that more often than not, the cups we gave out for soda cost more than the syrup that went in the drink. The restaurant offered us free food on days we worked, but we couldn't get drinks for free unless we brought our own cups.
This was shocking to me and put free refills into a whole new perspective. We could sell the soda for more than it cost to make, but no one would buy a soda if we tried to sell it for more than the cup cost. It would cost us less to allow customers to refill the same cup for free than it would be to give or even sell them another cup because it would cost the business a lot to replace each cup.
Soda cups aren't the only things that have a high mark up price, and they're not the only products people were surprised to find had a high mark up. Redditors know of lots of products that they were surprised to find out has a high mark up and are ready to share.
It all started when Redditor petrastales asked:
"What product unbeknownst to most people has the highest mark up?"
Equality Doesn't Exist
"Back in the early 2000’s I was managing a restaurant - garlic bread was selling for 3.95 and cost 0.07 to make. Not all food items are equal when it comes to margins!"
– leyland_gaunt
"I came here specifically to mention pizza. The profit margins on pizza are nuts, you have to suck at making it to not stay open."
– DreadedChalupacabra
"Yeah, it drives me nuts when you can request add-ons, but it's like $3 for a few pieces of camembert, or $2 for some chopped tomato, when it probably cost $5 for an entire 1kg bag of tomatoes."
– Writerhowell
How Cheesy
"Yeah and like 1.50 of that pizza was the cheese."
"Cheese is the most expensive part of a pizza assuming youre not doing some weird specialty stuff."
– Doomstik
"Can confirm. Worked at a pizza place. An incompetent employee was supposed to fluff a box of cheese but dropped it on the ground by accident. the owner was there. I swear I saw him shed a tear because that box was $120 of pure uncut shredded mozzarella and that was supposed to become like $1,000 in pizzas."
– PM_Sexy_Catgirls_Meo
That's Nuts!
"Yeah I worked at a place that did charcuterie, I apologized to the chef for munching out on the fancy olives all night. He said he didn't give a damn, as long as it kept my hands off the roasted cashews. Big jar of olives was like 15 bucks, the equivalent of cashews was like 200 bucks."
– hudson27
Bamboozled
"Reminds me of the never-ending pasta at Olive Garden. Pasta is dirt cheap and incredibly filling. The chances of you eating enough that it's actually a good deal for you is very slim."
– IBJON
"When I was working at a chain pizza restaurant, the storage manager wanted to get pasta on the menu, because of the profit margins. It's crazy because it cost us $2.10 to make a 17 inch pizza, and we sold them for $14."
– fukreddit73264
Not Worth It
"Flavored seltzers at a brewery. The beer costs 10x as much to make, but they charge almost the same at the tap."
– LocoCracka
"I have a buddy who made seltzers at a brewery in the Bay Area. Some malt liquor, very little flavoring, and a ton of soda water."
"Couldn’t make a cheaper adult beverage if you tried."
– Ikarus_Zer0
Ma, I Can't See!
"Glasses."
"Luxottica owns most major eye wear stores, costs them a few dollars to make and you pay hundreds for them."
– godnrop
"My cousin taught English in China after college in the early 2000s, apparently they had machines in malls where you could look into a pair of holes, do a vision test, get a prescription, and have a pair of glasses automatically ground for you in like 2 minutes for about $5, and the only reason we don't have that in the US is regulations."
"I travel to China frequently for work. I just take the USA prescription for family and friends and they have them made in about an hour or less. Family and friends give me an idea of frames they like and they pop the prescription lenses in. I pay about USD40 for the top-grade lens material that is antifog and anti-scratch."
– i3f8j
"I don’t really object to paying $50 for an eye exam, I object to paying $300 for a pair of frames. There’s no reason you shouldn’t be able to take the prescription the optometrist gives you, enter the numbers into the machine, and get the same $5 glasses."
– river4823
Message Received
"Back in the day, text messaging."
– alien109
"That's why I left T-Mobile in 2005. They were charging me for incoming texts but offered no way for me to block them. So basically, someone else had control of my bill."
– CGYOMH
"I remember being young, spending the $20 I worked so hard for so I could get minutes, only for a friend with unlimited minutes to spam me with a few texts and take it all away. What an upsetting time."
– Boopcheese
Ice Ice Baby
"Soft drinks in pubs. Especially the ones from “the tap”. Costs pennies and they charge £3 for a pint of it. Probably the biggest earner in a pub."
– lucky_1979
"Especially when they just cram a glass with ice and then lightly moisten it with the actual drink you ordered."
– jamesmowry
"My work just came out with a policy that we need to completely fill the glass with ice because it "keeps the drink colder for longer".. eyeroll."
– metalbridgebuilder
"The nuts and bolts section at your local big box hardware store is the highest markup isle. 500% or more. If you need more than a few bolts, go shopping at a proper hardware supplier."
– SatanLifeProTips
"Whenever I go through one of these aisles and look at the price for a single bolt or screw, I look at the overall assortment and think: There must be tens of thousands of dollars just for the shelf-price of fasteners I see right here in this aisle alone."
"The markup is crazy, but why do I want to buy a box of 100 screws if I only need two?"
– lemming_follower
Second To One
"The second-cheapest bottle of wine on the menu."
– slocki
"In order to not look cheap, many people will buy the 2nd cheapest item on the menu."
– AprilsMostAmazing
"Wine in restaurants in general. The markup on wine is wild. My boss used to get whatever was “on sale” from the distributor and usually pay $3-4 a bottle and sell it at $10 a glass."
– she_shoots
Pour Some Sugar On Me
"Candy floss / cotton candy. £4.99 for legitimately 10p worth of sugar."
– Tylervdub
"I used to work food service at an amusement park for a summer job."
"A manager told us that the cost of making a bag of cotton candy, including ingredients, labor, etc., was 19 cents...we sold it for $3."
– etm105
Look, Don't Drive
"Those button batteries in store."
"They know you need one asap cause your car won’t unlock so you are stuck."
"Wait 1 day and you can get a dozen from Amazon for same price."
– kindrudekid
Medical Supplies
"As a Diabetic I'm pretty sure it's Insulin."
– PraiseThePun81
"Can’t believe I had to scroll so far to find this."
"I spend over $13k annually on ‘good’ insurance that doesn’t cover half of the things I need as a diabetic. I spend half that again on the insulin and supplies. It’s a racket."
– Nosce_Temet
H2O
"Water."
– ganic-Lie4759
"Bottled water is so highly marked up as to qualify as a scam."
"At no extra cost aside from the bottle (I don’t have a water meter) my water is completely free. It tastes as good or better than bottled."
– 6033624
I didn't know about any of this!
I can hear my wallet crying.
Many consumers are guilty of purchasing products and making assumptions on how to properly handle them.
Sure, IKEA assembling instructions will undoubtedly be referenced—albeit with lots of hair-pulling–but there is certain literature attached to the merchandise that is conveniently forgotten.
The neglected piece of information is the warning label, and contrary to much public denial, they're there for a reason.
What is it about them that makes us conveniently gloss over the fine print, even if the word 'WARNING' is in bold and all caps? Do we, as educated consumers, think our common sense is sufficient?
Curious to explore this notion, Redditor rynoman12 asked:
"What is the 'WARNING: DO NOT...' label that is ignored the most?"
The following warned against specific body contacts.
See What I Mean?
"Glitter eyeshadow usually has a 'Warning: Do not use in the immediate eye area' and can cause damage to your corneas (even send you to the ER if you can't get it out) if even a particle gets in your eye."
Hear Me Out
"Do not insert inside the ear canal."
"Okay but why does my ear have a gspot then?"
– Cannanda
Screw Labels
"In my case would be like 'warning, do not wash/Gentle cycle/Hand wash...' and other shirts labels because I hate the feeling of that square thingy on my neck and first thing I do when I buy a shirt is ripping it off."
– V02D
Careful the things you ingest.
Toxic Chemicals
"WARNING: This product can expose you to chemicals, which are known to the State of California to cause cancer, are known to the State of California to cause birth defects or other reproductive harm."
Harmful Sip
"My sis came back to Scotland from San Fransisco a few years back with a tourist-tat coffee mug for me. Bloody thing said on the bottom that there was a chance I'd get cancer if I drank from it.
That's Just Nuts
"The warning on a 100% pure peanuts bag that it MAY contains peanuts."
"Lucky i always get a peanuts bag with peanuts."
Bad Combo
"Don't drink alcohol with medication."
"I swear everyone I know seems to just ignore that one or just not read the warnings or interactions with their medication in general."
These are warnings specifically aimed towards the safety of children.
Questionable Caveat
"That stupid warning on nerf guns that tells you not to shoot them at people."
"Uh, okay, sure."
"I think it says 'Do not shoot directly at the face', probably because if it hits an eye, the damage may be serious."
– ACA2000
Half-Baked Warning
"Eat raw cookie dough. Better to die hunched over the toilet from salmonella poisoning than live on my knees."
Gotta Bounce Solo
"The warning on every trampoline ever that says to only allow one person on the trampoline at a time."
"Part of my job is actually to write these types of warnings and precautions (I'm a technical writer - I don't decide what the warnings are, lawyers do that, but once they know what warnings they want, I work with them to make sure it's worded clearly and concisely)."
"Anyway, my company used to do trampolines, and my boss remarked on how he has never known anyone to follow that precaution, and that in fact, if you were ever to see a kid jumping by themselves on a trampoline, you'd probably think, 'Oh how sad - that poor child has no friends!'"
You would think most of us have common sense, and that the warning label is on a product just in case.
But that concept was lost on these consumers.
Remember the woman who used Gorilla glue as a hairspray replacement? We all know how that worked out: a trip to a plastic surgeon.
Well, a Louisiana man thought that woman who suffered the consequences of applying the strong adhesive on her scalp was lying.
So he tried it on himself by using Gorilla glue to attach a plastic cup to his lip.
Sigh.
People Explain Which Products Failed Simply Because People Weren't Smart Enough To Understand Them
It is a proven fact that human beings are not the brightest species on the planet. Actually, we're further down the 'brain-train' than most people would want to believe. Which is why there are so many consumer inventions that were so promising but crashed and burned. They flopped because people couldn't take the time to figure it out, or maybe as a whole, we're a little dumb. I'm still trying to figure out that damn rubik's cube, though that was a hit. Maybe that one is just me.
Redditor u/froxictic wanted to discuss a few things that we could try and put a little more brain power into by asking... What product failed because people were too dumb to understand it?
Smokey Knows Best
GIF by Smokey BearGiphyThe US National Park Service struggled for years to find a locking trash can that would be able to keep bears out. People couldn't figure them out so they wouldn't lock it back up, or litter, rendering them useless. One park ranger was quoted as saying there was considerable overlap between the dumbest people and the smartest bears.
Shush...
Those chip bags that would decompose in the ground. Too noisy, they said. But I kind of feel all chip bags are noisy to some degree. That being said, we should've either poured the contents into a washable bowl or plate or something like that or just used the noise as a deterrent to prevent over-eating.
Find the Source
Nearly 50% of HDTV's in the early era were returned because people plugged in their RCA cables as the main video source.
They not only didn't understand what HD was, they thought the picture looked worse, as it was distorted on a 16:9 screen.
Do the Math!
pulp fiction burger GIF by MIRAMAXGiphyThe 1/3lb burger because people thought it was smaller than the 1/4lb one.
Bad Tickets
There was a lottery ticket scratch off that had a temperature listed on it. You would scratch off to reveal your own temperature, and if it was colder than the listed one, you win. Pretty simple, right?
It failed because people don't understand negative numbers. People called in claiming that they "won" because -6 is "colder" than -8.
It is not. The ticket was ultimately discontinued.
Mix it In
They put out instant cake mix in the 50's. You only needed to add water, but no one would buy it. I think they couldn't believe you cold make a cake with just powder and water. They discontinued it.
There was a story when I was in school that the marketing guys figured out that if you take out the powdered egg and had the end user add eggs it would sell.
They figured that as women were going into the workforce and weren't able to cook a full meal, the felt guilty about buying a complete mix. Having the end user add real eggs gave them the feeling that they were really baking and not just pouring powder out of a box.
For Cleanliness
About 15 years ago Arm & Hammer came out with a series of environmentally safe cleaning products for bath, kitchen, and glass. They worked well, smelled good, and I really liked them. The drawback for dummies was the reusability of the spray bottle. Refills came in a cartridge the size of a five hour energy shot. You filled the bottle up to the fill line with water then screwed the cartridge into the bottle which had special inner threads to open the cartridge.
The spray bottle was sold empty with a cartridge attached. The checker at the store paused when ringing me up to ask if I really wanted to pay six bucks for an empty bottle. When I bought the glass cleaner I got the same question. Nobody bought it because they didn't realize how it was packaged.
This is not playtime...
homer simpson couch gag GIFGiphyThose little shopping carts at grocery stores for kids.
A bunch of dumb parents refused to parent their kids and they would just let them jam the carts into displays, peoples legs, other carts etc, so almost all grocery stores in our area got rid of them. They were made so kids could put their own choices into the cart and be mindful of what they choose, not babysitter bumper cars.
Can't Sip the "Cheap"
We had a guy come talk to us at my college about his experience in marketing. He mentioned that when he used to work for Campbell's (I think) they had trouble breaking into the Chinese market with their instant soup. They had just assumed that it would sell just as well there as anywhere else but apparently it was the same kind of issue as you mentioned where I guess culturally it was seen as "cheap" to just heat up some instant soup. So they rebranded and repackaged it as a dry mix that you had to actually add to boiling water and lo and behold it started selling.
The Laugh Track
Naked Gun Movie GIFGiphyPolice Squad!, made by the guys who did Airplane! and widely considered pound for pound one of the funniest TV shows that's ever aired.
But it failed because it required audiences to actually pay close attention to the quickfire gags and fast dialogue. Led to ABC's president memorably saying it was cancelled because "the viewer had to watch it in order to appreciate it."
Later it was adapted into the Naked Gun movies, which were smash successes, probably because people in theaters are locked down into the movie.
The Sound of Music
The Zune. Mayyybe a stretch but you could pay a monthly subscription ($10 if memory serves) for unlimited downloads. As long as you had the subscription, you could download anything you wanted to your device. On top of that you got 10 song credits a month you could use to buy songs to keep forever. As a music lover, I thought this was a better option than paying a buck a song from Apple for your iPod, plus I recall it being a cheaper device with more storage.
All you can eat music for $10 plus I get 10 songs a month to keep forever? Not bad. People still think I'm crazy when I bring it up. Granted, the stuff you didn't own would go away of you ever canceled the subscription, but still, it's not that different a concept from streaming platforms like Spotify.
Game Stop
The Wii U. People didn't know it was a new console and thought it was just a regular Wii, an add on to the Wii or who knows what else. A different name would have solved this entire problem. People still don't know how to distinguish Wii U games from regular Wii games, even though Wii U games will not play on a Wii console.
Marketing Geniuses take note, if you have a new product give it a different name than a slight variant on its predecessor.
A chemical needs to be added to soap in order for it to sud, and it was added so people would know that they were scrubbing enough. Now, people all expect soap to sud, so if someone puts out soap that doesn't have that chemical, people say the soap is broken.
Hairy Situations
In 1979, Clairol rolled out their touch-of-yogurt shampoo, which they hoped would help people with oily hair. Unfortunately for them, oily-haired consumers didn't like the idea of washing their hair with yogurt. The few who did buy the shampoo thought it was edible, only to be disappointed after getting sick as a result.
Unknown Options
Steam Link (the box). People didn't seem to realize it wasn't just for games, but was a generic PC "remotifier" of screen, keyboard, mouse and possible controller.
Lights Up...
Just For Laughs Reaction GIFGiphyThose Lytro cameras, you could take a picture completely out of focus and fix it in like 3 seconds, I found it amazing yet the company still went bankrupt.
For some reason people were more interested in these stupid things.
So many Loads...
HE clothes washers. Worked at Lowe's in appliances and people just couldn't wrap their heads around the lack of an agitator.
What is it with people and washers? I volunteer at a cat shelter and people don't know how to use the simplest models and they always breaks it.
Now we have to restrict who can use it. Doing a load of laundry shouldn't be such a problem.
I wonder how some people function in life. And it's has nothing to do with gender and age. We had a 60 year old lady who squeezed a huge cat bed in it (instead of only unzipping the fabric cover to wash it). We had to buy a new one... again.
papers please...
NJ vehicle registration expiration stickers. They were issued about 15 years ago. Idea was simple, place sticker in upper right corner of license plate. Next years sticker, place over the old one.
NJ drivers, stick the first one on correctly and subsequent stickers go anywhere on the license plate.
It was pathetic the patterns of stickers I would see. The state stopped sending them out because it clearly didn't catch on.
The Nightmare
Sega Dreamcast?
I don't think the consumers were dumb with the Dreamcast. Sega had a bit of a tarnished reputation at the time. Everything since the Genesis had been 'meh' in comparison to Nintendo (minus the Virtual Boy) and Sony. The Dreamcast was a much better system and much better marketed than anything Sega had done in a long while, and while it had some very good games, in retrospect Sega would have needed a god-tier lineup like we had never (and have yet to) seen before in order for the Dreamcast to survive past the release of the PS2.
Free... for all...
Happy Let Go GIF by Jamie N CommonsGiphyI'd have to say freedom. Too many people strip it down to "doing whatever the hell you want", and do all kinds of stupid and destructive things and give a bad name to the concept. Then people who know what freedom really is, but don't want people to be free, use it as a pretext for taking away our freedoms.
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