You might think companies are being greedy for overcharging for some items. Yet, consumer demand often drives up the cost of a product because people will pay. Here are 10 overpriced products that people still buy.
10. Bottled Water
Depending on your preferred brand of bottled water, you might be paying up to 10,000 times the cost of a glass from your tap. Many bottled water companies get their water from municipal sources (city tap water). If you’re seeking good-tasting water, you could save a bundle just by purchasing a filtered pitcher and filling it from your tap.
9. Movie Theater Popcorn
Popcorn at movie theaters has nearly an 800% markup. Theaters know customers who pay less for a movie ticket will pay more for concessions. You can get 24 packs of microwave popcorn at Target for $5. You can pay even less if you pop kernels yourself with a silicone popcorn popper in your microwave and avoid the packaged additives.
8. Cosmetics
Cosmetics is one industry that markets perceived prestige. A name brand or a currently trendy product will demand a higher price simply because they can. But you’re often just paying a premium for something no better than an average or generic brand. What you’re really paying for is the flashy packaging and all the marketing hype that triggered your FOMO.
7. Starbucks Coffee
Sure, it’s undeniable that Starbucks coffee tastes so good. You can’t dismiss all the extra flavors, colors, and seasonal concoctions the company offers. Nonetheless, Starbucks charges a fortune for what you can get fairly cheap at the grocery store. They know people will pay a lot more for convenience, popularity, and seasonal excitement.
6. Brand-Name Foods
Name brands have built their reputation selling good food, and they spend money on their packaging to make it look good. But generic brands are way cheaper and many are actually made by the name brand companies. It’s the same food. It’s profitable for name brands to sell products to third parties for less because they avoid certain associated costs.
5. Designer Clothes
Lots of people will pay more for clothing that is currently popular or has a certain name-brand label. While it’s true that some designer clothes may be of better quality, it doesn’t mean they’re worth the asking price. A pair of $300 jeans from a luxury brand may not be any better than a $30 brand from Target.
4. Printer Ink
People spend around $20 billion every year on printer ink. Consumer Reports found that printer ink is costing people somewhere between $13 to $75 per ounce. If at all possible, find a place that can refill your cartridges rather than purchasing new ones. Seek out generic cartridges versus name brands with high markup.
3. Eyeglass Frames
Like brand-name clothing, eyeglasses come with the option of purchasing both designer brands for frames and or lenses. For example, the average Luxottica pair of frames and lenses cost about $30 to make. Even at a discount chain like LensCrafters, they go for around $300. Armani frames alone will set you back $450. The markup on eyeglasses is ridiculous.
2. Mattresses
Mattresses are one of the cheapest home products to make for manufacturers at a cost of anywhere from $75 to $150, averaging about a hundred bucks. Only a few companies have a monopoly on the industry: Serta, Simmons, and Tempur-Pedic. Yet the cost of a mattress for consumers ranges anywhere from $200 to $4,000 depending on the brand.
1. Diamonds
Diamonds are one of the most overpriced items in the world. And it’s not rareness that makes diamonds so expensive. It has more to do with their sentimental value. Engagement rings, for example. Most people buy diamonds in some form of an heirloom. Because people associate diamonds with meaningful occasions, they’ll pay outrageous prices for them.
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