Pre-cut produce has the highest profit margin. A recent survey found grocery prices overall went up 2% while fresh vegetables went up 3%. Don’t buy pre-sliced, diced or chopped produce marked up 40% more.
Recognizing High Markups
You can tell if a product has a high markup if it’s always on sale, like clothes, shoes, handbags, jewelry, furniture, and mattresses. Products with low markups are small appliances (30%), large appliances (15-20%), cars (5-10%) and car accessories (15-25%).
Restaurant Markups
Restaurants mark up drinks the most, whether wine, cocktails or soda. Pasta, edamame, fried rice, and eggs also have high restaurant markups.
Reducing Costs on Produce
Buying whole fruits and vegetables and preparing them yourself is more cost-effective.
Save Money on Cereal
Name-brand cereal has a 43.5% retail markup. Compare ingredients between name-brand and generic brands, which are often identical despite cheaper prices.