Product prices are usually based on what consumers would be willing to pay. Not adding fixed expenses like manufacturing, materials, and advertising; items are mostly priced higher than their actual value. The bottom line is that companies need to make a profit. As some products are sold with huge markups, you can save money by buying products with fewer profit margins instead.


Beauty can be costly depending on where and what you buy, cosmetics-wise. With an estimated $50 billion U.S. cosmetic industry, consumers pay over 50% more than the wholesale cosmetic value in brand name products. Retailers can charge even more for products with special oils and minerals.


Medications can have extremely high markups. Since drug manufactures spend billions in research and development, the overall cost of producing drugs is passed over to consumers-making some prescription drugs very pricy.

Bottled Water

Bottled water can have big markups, varying greatly based on the brand. Take into account that drinkable water is available relatively free from the tap. As such, buying bottled water can cost you plenty over time.

Soft Drinks

Sodas have markups ranging from 400 to 600 percent the actual cost at restaurants and other food stands. Consider ordering tap water instead for substantial savings.


Buying your regular cup of coffee can cost you hundreds of dollars or more per year. Bypass the coffee shop and make your own coffee at home for considerable savings.

Grocery Products

Produce at grocery markets also has huge markups. Depending on the season, some produce price change widely. Consider buying produce during their peak season for ample savings.

Cell Phone Messages

If you are in the habit of regularly sending tons of text messages, you could do much better with an unlimited plan. Without an unlimited plan, you could be charged thousand times more based on how much data you send over unlimited plans.

Movie Snacks

Movie theater concession stands have huge markups for most of their products. As moviegoers are restricted from bringing their own snacks, it seems that the best way to save at the movie theater is to forego buying expensive snacks. After all, paying $5 for popcorn is much higher than the actual cost.

Cologne and Perfume

Colognes and perfumes are priced much higher than simple oils with rich smells. With special recipes, these types of products can have markups that almost double their actual costs. Designer perfumes and colognes can have even bigger markups.

Clothing Items

Some clothing items can be extremely expensive such as designer items. For example, average jean’s markup is over 100% the regular price based on the retailer.

Perceptive shoppers can save thousands of dollars per year by avoiding products with the biggest markups and searching for alternatives instead. If you are in the habit of buying high markup products, consider saving over splurging. After all, unless you definitely need a product, your finances will be in a much better shape with the more you save.