The 9 Everyday Products With the Biggest Markups

By Kyle James on 28 May 2015 4 comments

Products with ridiculously high markups exist because somebody, somewhere, is willing to pay that price. Whether it's because of convenience, perceived value, or simple ignorance, is up for debate. The good news is that with a little forethought, most of these markups can be avoided, or at the very least lessened. Here are nine of the biggest, along with some common sense solutions and workarounds.

1. Bottled Water

If you're buying designer bottled water brands like AquaDeco or Fine, you're getting nailed by an unbelievable 280,000% markup. Although, if you're reading Wise Bread, I'm guessing you probably don't buy designer brand water. But you probably do buy bottled water from the grocery store or warehouse club on occasion, in which case you're paying a 4,000% markup compared to tap water.

Solution: Buy a Brita Water Filter Pitcher from Amazon and filter your tap water from home. You can then take the filtered water with you when you're on-the-go by using a reusable BPA-free water bottle.

2. Pre-Cut Vegetables/Fruit

Veggies and fruit that are cut up and ready to go are definitely convenient, especially for busy families. But did you know that you're easily paying a hefty 40% markup on the pre-cut varieties?


3. College Textbooks

According to CollegeData, the average student spent over $1,000 on textbooks and supplies for the 2014–2015 school year with markups hovering around 200% for brand new textbooks.

Solution: If you plan on reselling your textbooks at the end of the semester, you should consider renting, instead of buying, from websites like Chegg an TextbookRentals. Also, if you plan on buying them, always ask for used textbooks at the college bookstore, or buy them in gently used condition from websites like and (See also: 20 Places to Buy or Rent Textbooks)

4. Designer Handbags

The average name brand handbag carries a markup of well over 100%. Brands like Coach, Dooney & Bourke, Kate Spade, and Michael Kors have built a luxury brand reputation based solely on consumer perception.

Solution: Always buy handbags on sale. Because of the 100% markup, you'll often see 50% off sales on handbags at department stores. Also, shop at discount stores like TJ Maxx and Marshalls for name brand handbags at heavily discounted prices. You might not find Coach or Louis Vuitton, but you'll still find very high quality brands at good prices.

5. Designer Jeans

According to the Wall Street Journal, designer jeans often come with a markup in the 260% range. For example, the fact that someone would spend $208 on a pair of jeans from 7ForAllMankind, tells me that for some people, being fashionable at any price is the number one priority when it comes to covering your legs with denim.


6. Prescription Drugs


Solution: Ask for free samples while at the doctor's office. A few years ago I was prescribed Lamisil, an expensive prescription drug, which at the time cost $30 a pill and had no generic equivalents. On a whim, I asked the nurse on the way out of the office it they had any free samples. She went and looked and returned with a bag full of Lamisil samples. She told me to come back when I ran out as she didn't have enough for a full treatment plan. Simply by politely asking she saved me over $500 on prescription drug costs.


7. Eyeglass Frames

Eyeglass frames have a ridiculously high markup in the 500% range. I recently discovered this when I needed a new pair of glasses and decided to buy them directly from the optometrist as my vision insurance was going to pay for them. But after looking through my choices, and the hefty price tags, I quickly realized that you'd be crazy to buy directly from the doctor if you have little or poor insurance. The frames I eventually chose were close to $350, and after doing some research, I could have gotten them online for $125.

Solution: To avoid the markup as much as possible, always shop eyeglass frames and lenses online as well as warehouse clubs like Costco and BJ's Wholesale.

8. Coffee and Tea

When you hit the Starbucks or local coffee shop, know that you're getting hit by a markup in the 250% to 400% range. Sure it's a nice treat from time to time, but visiting everyday can really be a budget buster.


9. Furniture

According to CBS Money Watch, most furniture stores markup their prices in the 80% range. This is especially true at boutique shops and high-end department stores like Macy's and Nordstrom.

Solution: Because of the high markups you should always try to negotiate a deal, even if the price is already discounted, as the majority of furniture stores have plenty of room to come down in price and still make a profit. This is especially true if you're paying with cash as the store won't have to pay credit card fees.


What product markups drive you crazy and how do you avoid them?

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Guest's picture

Great tips! Luckily I'm too cheap for designer clothes and handbags. I'll have to remember the prescription sample one next time-I'd never thought of that before.

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Guest's picture

Useful information! As for designer handbags, I never buy new. I have found great deals online for secondhand handbags in like-new condition. Twice and Thredup both sell handbags as well as secondhand clothing.

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Chris K.

You forgot Jewelry!! Lol