More Real Life Markups.

Today I have more examples of real life markups, some might surprise you but all will offer students a chance to calculate the markup and make comment on each problem.

Lets start with the popcorn sold at movie theaters.  Most people buy candy, popcorn, and a drink to take in and then complain how much it ran them.  The amount of popcorn needed for a small container runs about 35 cents but the theater sells it for $6.50.  That is quite a markup.  The reason they sell the popcorn for so much is to keep ticket prices lower.

On the other hand, an iPhoneX costs about $370 to make but sells for $999 or a bit under three times the amount it cost to make.  Not all phones have the same markup but for Apple, the cost for certain electronic parts is decreasing but the cost isn't.  Other electronics such as HDMI cables and printer cartridges also have good markups.  A HDMI cable costs around $4.00 to make but sell for around $6.00 while printer cartridges cost between $4 and $5 dollars to make yet sell for between $14 and $50 depending on the type of printer you have. The last printer cartridge I purchased ran $32 for black ink.

For people who love to give greeting cards, a birthday card usually costs $1 to $2 to make but if you buy a Hallmark card, that will cost you somewhere between $3 and $7 so the markup isn't quite as bad as for other products.  Look at designer jeans.  The ones sold by True Religion cost $50 to make but can retail for $300.

Even graphic calculators such as the TI-84 cost between $15 and $20 to make but retail for around $100. The actual selling price depends on if you catch it on sale.  On Amazon, it retails for about $107.  We all know college textbooks have a pretty good markup but most only cost $20 to print and yet colleges charge between $100 and $200 for the same textbook new.

Planning to get married?  One of the 25 yard Badgley Mischka wedding dress made out of a silk satin can cost $2500 to make but sells for over $7000. Diamond Rings are not quite as bad on the markup.  A one carat diamond ring can cost between $1000 and $3000 depending on cut and type of ring yet sell for at least $4000 at places such as Kay Jewelers or Jared.  Other products such as eye glasses only cost around $30 for the frame and lenses but can cost $300 or more for a brand name pair.

This information can be used for students to calculate the actual markup for each item and then they can comment on the markup.  At the same time, students can create a double bar graph for each item showing the cost and the final price before creating a second bar graph showing the actual markup.  It's not hard to turn this into a quick project with pictures for each item, information on each item's cost, selling price, and markup, and a conclusion.

There  are lots of other things out there with huge markups but these are the ones I found the cost to make and the selling price.  Let me know what you think, I'd love to hear.  Have a great day.