DealHack Guides
30 Of The Most Extreme Price Markups Out There Today
4 minute read
The mysteries surrounding how things are priced have largely been eroded by the increased access to information consumers have via the internet. Yet, we still pay WAY too much for most products.
Here at Dealhack, we felt like getting to the bottom of which products are marked up the most. From coffee to concert tickets, some of these items may surprise you.
Below we expose more than 30 products with high markups, ranging from "very high" to "absurd". How many of these do you pay for in full?
*Note: The traditional "keystone" markup is around 100%.
Our Sources
| Category | Product | Markup | Sources | Notes |
| Services | Snow removal | 3900% | http://www.nytimes.com/2011/11/09/your-money/estimating-expenses-before-buying-your-first-home.html | $800 for 4 months vs. $20 shovel |
| Services | Cutting the lawn | 492% | http://www.nytimes.com/2011/11/09/your-money/estimating-expenses-before-buying-your-first-home.html | $1,000/year vs. $169 mower |
| Services | Interior painting | 6329% | http://www.nytimes.com/2011/11/09/your-money/estimating-expenses-before-buying-your-first-home.html | $9,000 vs. $20/gallon, 7 gallons/house |
| Services | House cleaning | 5900% | http://www.nytimes.com/2011/11/09/your-money/estimating-expenses-before-buying-your-first-home.html | $100/cleaning ($2400/yea) vs. $40 supplies/year |
| Services | Valet airport parking | 313% | http://www.npapark.org/pdfs/2010_Parking_in_America_Report.pdf | $12.07 valet vs. $2.92 self-park (both first hour) |
| Services | Pool cleaning | 210% | http://www.nytimes.com/2011/11/09/your-money/estimating-expenses-before-buying-your-first-home.html and http://online.wsj.com/news/articles/SB10001424052748704164904575421660103119700 | $130/month vs. $42/month supplies |
| Education | Textbooks | 163% | http://uspirg.org/reports/usp/rip-101-2nd-edition | $100 US vs. $38 UK |
| Education | High school ring | 1329% | http://www.cnbc.com/id/100711598 | $70 basic vs. $1,000 high-end |
| Education | Ivy League vs. in-state tuition | 1100% | https://www.collegetuitioncompare.com/best-schools/ivy-league/ | $5,000/year in-state university vs. $60,000 Ivy League |
| Education | Cap and gown | 1011% | http://www.nbcnews.com/id/30870784/ns/us_news-the_elkhart_project/t/cap-gown-costs-keep-some-seniors-rite-passage/#.U4eQuvldWo0 | $18 to buy vs. $200 to rent |
| Education | SAT prep classes | 3082% | http://www.kaptest.com/sat-prep/sat-prep-course/course-options and https://store.collegeboard.org/sto/productdetail.do?track=satsite&Itemkey=008525 | $700 Kaplan prep vs. $22 book |
| Education | TI-83 Plus calculator | 892% | http://www.cemetech.net/forum/viewtopic.php?t=9621 and https://epsstore.ti.com/OA_HTML/ibeCCtpSctDspRte.jsp?section=10131&sitex=10023:22372:US | $129 from TI site vs. $13 estimate of materials |
| Home/family | Funeral caskets | 350% | http://www.nytimes.com/1998/05/29/nyregion/selling-coffins-storefront-savings-are-large-but-some-find-setup-unnerving.html | Average US funeral costs 300% more than average UK funeral |
| Home/family | Furniture | 400% | http://consumerist.com/2007/09/26/the-furniture-industry-is-a-secret-cabal/ | Home furniture has up to a 400% markup |
| Home/family | Purebred vs. rescue dog | 1400% | http://www.forbes.com/sites/allenstjohn/2012/02/17/how-much-is-that-doggie-in-the-window-the-surprising-economics-of-purchasing-a-purebred-puppy/ and http://www.thehumanesociety.org/adopt/ | $200 puppy from Humane Society vs $3,000 puppy from top breeder |
| Home/family | Printer ink | 300% | http://mashable.com/2013/01/23/tech-rip-offs/ | $22 at Best Buy vs. $5.50 online |
| Home/family | New roof | 650% | https://www.thezebra.com/homeowners-insurance/rates/how-roof-type-impacts-home-insurance/ | $22,500 slate vs. $3,000 concrete tile |
| Home/family | Car financing | 124% | http://www.moneyunder30.com/car-buying-mistakes | $2,094 interest at 6% financing vs. $934 interest at 4% financing with extra down payment |
| Food/drink | Restaurant wine | 400% | http://www.dailyfinance.com/2010/09/08/top-5-food-mark-ups-where-restaurants-make-huge-profits/ | Low of 200% markup to high of 600% markup at high-end restaurants |
| Food/drink | Domestic beer | 694% | x | $19 for 30 pack ($0.63/beer) vs. $5 average bar price |
| Food/drink | Mixed drinks (well) | 1150% | x | $14 for 1.75L ($0.35/shot, $0.05/soda) vs. $5 average bar price |
| Food/drink | Restaurant soda | 1150% | http://www.dailyfinance.com/2010/09/08/top-5-food-mark-ups-where-restaurants-make-huge-profits/ | $.20 wholesale vs. $2.50 in restaurant |
| Food/drink | Bottled water | 2000% | http://www.businessinsider.com/bottled-water-costs-2000x-more-than-tap-2013-7 | Bottled water vs. tap water |
| Food/drink | Movie popcorn | 900% | http://www.billshrink.com/blog/7636/the-12-biggest-ripoffs-in-america/ | Average bucket cost vs. less than $0.10/ounce to produce |
| Food/drink | Coffee shops | 2900% | x | $3 average drink vs. $0.10 for homebrew coffee |
| Healthcare | Brand name pain relievers | 398% | http://www.dailyfinance.com/2011/03/09/biggest-drugstore-markups-what-you-pay-a-premium-for/ | Retail vs. wholesale |
| Healthcare | Overnight hospital stay | 472% | http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/15/why-an-mri-costs-1080-in-america-and-280-in-france/ | $3949 in US vs. $690 in Switzerland |
| Healthcare | MRI | 286% | http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/15/why-an-mri-costs-1080-in-america-and-280-in-france/ | $1,080 in US vs. $280 in France |
| Healthcare | Child birth | 330% | http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/15/why-an-mri-costs-1080-in-america-and-280-in-france/ | $9,280 in US vs. $2,157 in Germany |
| Healthcare | Coronary artery bypass | 1394% | http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/15/why-an-mri-costs-1080-in-america-and-280-in-france/ | $67,583 in US vs. $4,525 in India |
| Healthcare | Prozac | 4451% | https://www.fda.gov/about-fda/center-drug-evaluation-and-research-cder/generic-competition-and-drug-prices | $136.52 brand name vs. $3 generic |
| Electronics | HDMI cables | 1900% | http://mashable.com/2013/01/23/tech-rip-offs/ | $1,000 at Best Buy vs. $50 for 36' cable online |
| Electronics | Cable internet | 4900% | http://www.slate.com/blogs/future_tense/2013/02/25/usage_based_internet_plans_may_be_an_attempt_to_thwart_netflix_other_online.html | $0.5/GB fee vs. actual cost $0.01/GB |
| Electronics | text messages | 5961% | http://money.cnn.com/galleries/2010/news/1001/gallery.americas_biggest_ripoffs/ | Plans with $0.20/message vs. actual cost $0.0033/message |
| Electronics | phone charger | 672% | http://www.callcenter-iq.com/customer-experience/articles/saga-of-a-cell-phone-charger-how-best-buy-office-d/ | $20 in store vs. $2.59 online |
| Electronics | ethernet cable | 1000% | http://mashable.com/2013/01/23/tech-rip-offs/ | $22 in store vs. less than $2 online |
| Electronics | 64GB iPad (2012 price) | 103% | http://www.slate.com/articles/technology/technology/2012/07/apple_profit_margins_you_re_paying_way_way_too_much_to_get_a_little_more_space_on_your_ipad_and_iphone_.html | $829 retail vs. $408 manufacturing cost |
| Entertainment | Diamonds | 230% | http://smallbusiness.chron.com/markup-diamonds-76435.html | Retail diamonds cost 1.6 to 3 times original cost |
| Entertainment | Movie tickets | 192% | http://www.today.com/money/3d-movies-push-ticket-prices-all-time-high-1C8342088 | $21 for IMAX ticket vs. $7.20 bulk rate from Costco |
| Entertainment | Yankees seats | 1567% | https://www.mlb.com/yankees/tickets | $300 MVP Club vs. $18 bleachers |
| Entertainment | Concert ticket resellers | 2873% | http://online.wsj.com/news/articles/SB123672740386088613 | $1,189 from reseller vs. $40 from venue |
| Entertainment | Airline tickets | 388% | http://www.theguardian.com/world/2010/aug/22/airline-ticket-eight-week-rule | $166 at 1 week from departure vs. $34 at 8 weeks |
| Entertainment | Valentine's Day roses | 220% | https://www.reuters.com/article/us-usa-retail-roses-idUSBREA1514620140206 | $8 retail vs. $2.50 wholesale |
| Fashion | Eyeglass frames | 1329% | http://www.lenscrafters.com/CategoryDisplay?catalogId=11651&orderBy=3&facet=&beginIndex=0&categoryId=24713&langId=-1&storeId=10851&metaData= and http://www.zennioptical.com/low-prices | $100 Lenscrafters vs. $7 Zenni Optical |
| Fashion | Designer jeans vs. brand | 650% | http://on.wsj.com/q9HAw4 | $375 True Religion vs. $50 Levi's |
| Fashion | Skin-care products | 300% | http://skincare.about.com/od/skincarefaqs/a/Do-Expensive-Skin-Care-Products-Work-Better-Than-Inexpensive-Ones.htm | $112 high-end vs. $28 low-end |
| Fashion | Designer boots | 354% | http://www.forbes.com/sites/matthewcarroll/2012/02/22/how-fashion-brands-set-prices/ | $245 retail vs. $54 manufacturing costs for VAEL Deckard Boots |
| Fashion | Wedding dress | 290% | http://www.npr.org/blogs/money/2012/04/03/149929993/why-did-my-wedding-dress-cost-so-much | $2,730 retail vs. $700 material + labor |
| Fashion | Designer lingerie vs. brand name | 1100% | http://www.huffingtonpost.com/the-stir/expensive-lingerie-is-it-_b_808125.html | $240 designer vs. $20 brand name |
| Pseudoscience | Power Balance bracelet | 5028% | http://www.ratbags.com/rsoles/comment/powerbalance.htm | $60 retail vs. $1.17 manufacturing cost |
| Pseudoscience | Flu "relief" Oscillococcinum | 48900% | http://www.amazon.com/Boiron-Childrens-Oscillococcinum-6-Doses/dp/B007N7BB9C/ref=sr_1_3?ie=UTF8&qid=1401720041&sr=8-3&keywords=childrens+oscillococcinum and http://www.amazon.com/Domino-Sugar-Granulated-10-Pound-Bags/dp/B00060N5OW/ref=sr_1_3?ie=UTF8&qid=1401720164&sr=8-3&keywords=sugar | $10 for 6 pills or 6.8 g total ($1.47/g) vs. $15 for 4,530g sugar ($0.003/g) |
| Pseudoscience | Crystal healing | 2493828% | http://www.healingcrystals.com/Wand_-_Selenite_Massage_Wands.html and http://minerals.usgs.gov/minerals/pubs/historical-statistics/ds140-gypsu.pdf | Gypsum "healing" $122.5 for 355g at 2.308 g/cm3 (25 at 2"x1"x1"), or $312,988 per ton (907,185g) vs. "regular" $12.55 per ton |
| Pseudoscience | Magnet therapy | 970% | http://www.amazon.com/Magnetic-Therapy-Set-Large-XLarge/dp/B000GKEYJW and http://www.craftparts.com/hardware-powerful-magnets-c-198_315.html | $30 for 28 "therapeutic" half-inch magnets ($1.07 each); $7.25 for 70 half-inch magnets ($0.10 each) |
| Pseudoscience | Psi bands (acupressure) | 3900% | http://www.amazon.com/PSI-Bands-by/dp/B000WGLR4K/ref=zg_bs_3767501_1 and http://www.alibaba.com/product-detail/adjustable-silicone-rubber-wristband_511859045.html?s=p | $16 for two acupressure bands ($8 each) vs. $0.20 each in bulk |
| Pseudoscience | Psychic phone call | 9186% | http://www.californiapsychics.com/help/category.aspx?contentid=4248 and http://attprepaidcard.amssupport.net/Public/FAQ.aspx | $6.50 per minute psychic vs. $0.07 per minute with AT&T |
