We know that companies who make products have to make a profit. The question is how much profit should they be making? You could argue that some of making profits is about supply and demand and at other times the value the consumer sees in the product itself. However, I've witnessed a bunch of day to day products that are highly market up where you can really save some money if you use some alternative shopping strategies. Here are six products that are highly marked up, and your smart money moves alternatives to increasing your bottom line.
- Bottled Water- I guess branding is everything when it comes to bottled water. It started many years ago with the special brand of mineral water called Evian, and today you have brands such as Fiji and even Black water brought you by the gentlemen from the Real Housewives of New Jersey. If you are going to use bottled water (from a store), you might as well go for the store brand. It will be 50% of the cost. If you really want to save money, install a filter a system at home because the cost is less than .01 cents per gallon or purchase yourself a high quality reusable water bottle.
- Concert Tickets- When you buy concert tickets, it really is all about supply and demand. Some sites really just charge a service fee whereas some of the ticket reseller sites have massive markups in the price of tickets. Buying tickets to a show you really want to see can be a very emotional purchase, and the ticket resellers know you are susceptible to paying a huge markup. An alternative is try other routes such as asking your Facebook network, neighbors, salespeople connected with local radio or tv stations, and even your network through the workplace.
- Movie Theater Food- There's a reason that Regal and AMC are making these comfy at home type theaters now. The markup isn't in the tickets, it's in the food and beverages. I've written on this before, but you'll pay through the nose for candy, popcorn, soda, and definitely alcohol. Stop at the local CVS or Walgreens for $1 movie Candy (vs. $4) and bring Ziploc bags for one large popcorn (along with the cheap bottled water;)) and you'll save a boatload.
- Printer Cartridges- It should be apparent at this point that the strategy for printer companies is to give away the printers and massively markup the cartridges that run out in about eight seconds after your kids print their first book report. While you can't avoid getting ink for your printer, check out buying refilled cartridges as opposed to buying the new packages from a major office supply store. This way you'll avoid the huge markups on ink.
- Wine At The Restaurant- Special evenings out on the town often mean you'll be treating yourself to some fine wine. Remember, wine at a nice restaurant can get marked up 100% to 200% depending on the bottle of wine. The wine lists are laid out in such a manner that you won't pick the lowest cost bottle of wine on the menu or you will look cheap in front of your friends, so you end up picking a highly marked up one in the middle. Two things for saving money on this. Either just order a glass of wine or pick a cheap bottle of wine. Even the lower priced ones on the menu are still good wines.
- Greeting Cards- If you go to a big mall store for cards such as Papyrus, plan to pay massive markups to get your birthday or holiday cards. Check out a place like the dollar stores or Trader Joe's for $1 greeting cards. Trust me, most of these will end up in the circular receptacle anyway.
Written by: Ted Jenkin
Request a FREE consultation: www.oxygenfinancial.net
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
