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Wednesday, August 31, 2011

Top Retail Markups Revealed

Wednesday


Top Retail Markups Revealed

Denim-The market is notorious for its mark-ups of anywhere between 100 and 300 percent. Demand for designer jeans, especially, has skyrocketed over the last several years, creating a $54 billion global industry. Retail experts say consumers are willing to pay up for denim — as much as $200 or $300 a pair — because nowadays they're considered multifunctional.  You can find better deals at online fashion retailers, like Gilt.com and Bluefly.com, as well as at consignment shops. At Fisch for the Hip, a consignment boutique in Manhattan, lightly used designer jeans sell for around $60, less than half their retail price.

Cosmetic industry has big mark-ups, especially on high-end make-up. Think there's a significant difference between a $25 lipstick and a $5 one?
"It's the same compound or chemical makeup whether you're buying Maybelline or LancĂ´me or Mac," says Bentz. Even so, retailers get away with massive mark-ups in the $170 billion beauty industry — often more than 100% — thanks partly to clever marketing, celebrity endorsements and fancy packaging. So don't poo-poo the makeup at your local drugstore. If you buy a lot of cosmetics throughout the year you may also want to consider joining a rewards club at your local beauty supply store to earn discounts. For example, after spending $25 club members at Sally Beauty Club, a national beauty supply store, receive 15% off their next purchase.

Concessions -A small bag of popcorn from the movies, for example, goes for about $6, when it's just a bag of popped kernels. The mark-up is more than 1,000%. To save money bring your own snacks from home when permitted. You can also try to offset the high cost of concessions with lower priced movie tickets. AAA, Sam's Club and Costco sell discounted tickets for some movie theaters.



 

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