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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.

The Corporate Decisions That Were Met With Huge Public Backlash

Reddit user Astro_Shogun asked: 'What decision by a company received the most amount of backlash from the public?

Corporations don't get big overnight.

A lot of tough decisions, big wins, and sometimes even bigger losses, go into their growth.

But sometimes companies make mistakes that the public simply cannot let slide, and it can be hard to imagine how the company could stay afloat after the backlash.

Redditor Astro_Shogun asked:

"What decision by a company received the most amount of backlash from the public?"

Dang It, Photobucket

"When Photobucket decided to take the whole internet hostage by asking for 400 dollars a year for what was previously a free image storage solution. The move broke years of forum posting and erased a significant portion of the web collective knowledge."

- denpo

"Yup. And now they're holding almost all of my son's childhood photos (some of which I managed to save in other places) hostage."

- KnockMeYourLobes

"Browse any forum thread from the early 2000s and practically all the images are gone because everyone used Photobucket back then. It will be the same way with Reddit whenever Imgur goes under."

- NothingOld7527

So Salesy

"JCPenny doing away with sales and trying to present itself as a more upscale store. Sales immediately plummeted, and they reversed course quickly."

- flyingcircusdog

Cheap Jewelry

"Gerald Ratner said the reason his jewelry company could sell stuff so cheap was because the products were crap. It destroyed the company overnight."

- simplemtbman

Front Wheel Drive

"Ford, in the '80s, tried to replace the aging Fox body Mustang with a front-wheel drive, Mazda-based car. This was pre-internet, but car people got UPSET and deluged Ford with a letter expressing their anger."

"Ford backtracked, kept the Fox body around, and released the vehicle that was going to be the new Mustang as the Probe. It lasted two generations, but the Mustang soldiers on."

- StillN0tATony

Online Only

"Microsoft got roasted when they announced Kinect and always-online were required for the Xbox One. Took all the momentum they had from the 360 era and put them miles behind Sony."

- Jerry_Williams89

Childhood: Destroyed

"Sonic having human teeth."

- LightDash

"I just immediately pictured teeth in a Sonic milkshake and had a horrified reaction before my brain caught up to you meaning the character."

- Rolizas

Questionable Upgrades

"Very recently, T-Mobile. A company that 10 years ago called itself the Uncarrier by making a series of pro-consumer changes to its plans and the previous CEO built almost a sort of cult of fans of the company. Then T-Mobile acquired Sprint and got a new CEO."

"A couple of weeks ago, T-Mobile internal documentation revealed it was going to automatically upgrade customers on old grandfathered plans up to new plans, which were more expensive. Customers would have to call in to opt out of the change. 'They weren’t raising customers’ rates, they were moving them to better plans.'"

"Well, major tech news got ahold of that, and then even some local news stations, and T-Mobile quietly 'clarified' a week later via internal communications that only one percent of their customers would be affected."

- artimaticus8

Coming Together in Hate

"Anyone remember the Kendall Jenner Pepsi ad when she solved police brutality?"

- vernon3

"Those moments are precious. There are a few things these days that bring everyone on the Internet together. That was one of those things. We all hated the Pepsi ad that solved police brutality."

"That ad had it all. Pandering, ignorance, arrogance, and talking down to their audience."

- notwoutmyprob

"And a Kardashian."

- Kitchen_action

With Every Purchase

"I couple of years back a local Detroit area car dealership decided the best way to celebrate MLK day was to give away free car alarms with every purchase."

"Nobody liked that."

- graveybrains

A Sale Gone Too Well

"Hoover UK offering two free flights to America if you spend £100 on their products. They anticipated that people would spend a lot more than the minimum required which would cover the approximately £600 value of the tickets."

"When the company was deluged with purchases around the £100 mark, they reneged on the offer, which prompted a very expensive lawsuit. The fallout was so bad that the UK division of the firm was sold to a rival company."

- Live-Dance-2641

New Drink, Who Dis?

"New Coke."

- PeggyWithPhatA**

"After the relations disaster, the public clamored for the decision to be reversed, and Coca-Cola released 'Coke Classic.'"

"Coke Classic soon had an even higher market share than Coke did before the public relations fiasco, and a new theory made the rounds: that Coca-Cola deliberately made these decisions, simply to gain publicity, and increase market share."

"The reaction from Coca-Cola’s executives was, 'We aren’t that smart, and we aren’t that stupid.'"

- Malthus1

A Tweet Turned Sexist

"Burger King stating that 'Women Belong in the Kitchen.' What they were TRYING to say was that they wanted more diversity. People didn't see it that way, and in the end, they had to issue an apology."

- zerbey

The Downfall of an Incredible Publication

"Here’s one there should be a public outcry about."

"Disney bought National Geographic and controls everything it does. This is the last year the iconic magazine will be available. I’m incensed."

- redheadMInerd2

(The writer of this article is equally incensed.)

Predicting the Future

"I feel like whatever YouTube is cooking up lately will be the next one."

- Just_Aioli_1233

"Tech companies sure know how to kill off highly popular and profitable apps, super quick. It’s interesting to watch it happen in real-time. Facebook, Instagram, Twitter, YouTube, all losing tons of followers and destroying their own stock."

- Eleanor_of_Accutane

It's easy to see how all of these mistakes resulted in huge backlash, sometimes at the total expense and downfall of the business.

But some of these mistakes were made by companies that are still huge today, and to a certain extent, that's kind of surprising.

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