It’s no secret: stores make money by purchasing their products for a low price and selling them to consumers for a much higher amount. But have you ever stopped to wonder just how much grocery stores are raking in and which products offer the biggest opportunity for markups?
Grocery stores have some of the lowest profit margins in the retail landscape. Typically, food products get marked up much less than other merchandise, like apparel. However, when it comes to figuring out which things are marked up the most, the true cost of goods may surprise you.
Ahead, check out all the biggest markups in the grocery store from lowest to highest, including one item that’s marked up a shocking 4,000% (No. 15).
1. Non-grocery items
- Markup percentage: 40-50%
- What to buy instead: Shop for these items elsewhere
Need lightbulbs or lawn furniture? It might be more convenient to just grab these items during your weekly grocery store visit but doing so will almost always come at a cost. That’s because non-grocery items are typically priced higher in the grocery store than they are at other retailers like Walmart or Amazon. Shopping around for these items will save you significant cash (even if it does take a little extra time).
Next: Prepared foods