Sharing Daily Discoveries About Personal Finance And Business Topics

Looking At Markup Prices To Prevent Impulse Spending

One thing that I am always interested in when it comes to buying things is learning how much it costs for a company to run its business or how much they buy certain products for in which they then resell to others. For myself, whenever I see a huge sign or advertisement mentioning about a sale or discount price, the first thing that I wonder about is how much the item really costs the company to get a better picture if it is truly a good deal or not.

For example, a lot of times there could be these items that retail for say $200 and then there is a big sign saying $50 off which makes you think it is a bargain and so you buy it. If you knew that the company purchased the item for $75, that will make you think if what you are getting is truly a very good deal or not. A real recent example is when I went looking for a mini fridge and most places had them for a $199.99 price tag or so. Upon investigating, I saw that a lot of companies purchased them for as low as $60 to then resell. That sure puts a different perspective on things and makes you think more wisely in making large purchases. Like with that example, chances are that a company with lower overhead expenses can afford to offer a better price.

Of course, that doesn’t mean you should turn into a cheap person either such as believing if it costs someone $10 to buy something then they should be able to sell it to you for $10.01 as you have to factor in their expenses to be able to stay alive. The supply and demand factor should also be considered too. But in general, having some general knowledge in terms of how much a certain product is marked up can really be beneficial in helping you to save money in the long run.

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