What physical item has the highest markup on earth?

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AMDZen

Lifer
Apr 15, 2004
12,639
0
76
i would think the markup on a large soda at the movies is more than the popcorn.

Agreed. Coke pays restaurants and places to carry their product, so not only is it 100% profit, they make a little extra on top.
 

bfdd

Lifer
Feb 3, 2007
13,312
1
0
Why does everyone always repeat that whole "ticket sales go to studios" stuff? If ticket sales go to the studios, then why can I go to a theater locally and watch TWO new releases for $5 total? Do the movie companies really say "hey, you're in NYC, therefore we're charging your theater $8 per person who sees the movie. Oh, and you - you're in a rural area, so we're charging $2 per person who sees this movie."

Actually it does for the most part go to the studios for the first couple weeks. After that it ends up in the hands of the theater. Around the time Jaws came out they started doing this. This is why you see such a rush for blockbusters, trying to make new big ones every quarter instead of once a year or two. They have to hit the market with a new blockbuster as soon as the share of ticket sales starts going back to the theater. It's really fucked up hollywood, some people I work with hate the current model as they feel it lowers the overall experience and quality of cinema.
 

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91

KeithTalent

Elite Member | Administrator | No Lifer
Administrator
Nov 30, 2005
50,235
117
116
Sex. Should be free, but always ends up being very expensive.

KT
 

Childs

Lifer
Jul 9, 2000
11,450
7
81
Its the labor. Those cables are hand crafted by specially trained Tibetan monks in base camp IV mount everest. The unique atmospheric conditions and impeccable hand crafting with bespoke materials exudes a warmth and sonic clarity you need to experience. They are worth it if you appreciate fine impeccable quality.

In other words, Made in China.
 

guy666

Member
Dec 25, 2010
43
0
0
Agreed. Coke pays restaurants and places to carry their product, so not only is it 100% profit, they make a little extra on top.

Umm I don't think that Coke pays restaurants to carry their product. I have worked at three different restaurants and I have never heard of Coke paying them. There is no way you make over 100% profit on drinks, the fountain itself isn't cheap and repairs are expensive if you need more than the free ones you get every year from Coke. Also ice machines are pretty expensive and break fairly often.
 
Apr 20, 2008
10,162
984
126
I bet they could personally fly these insanely priced cables out to you and barely scratch their margins.

You are likely correct. $250 each way? That's about a 5% drop in total sale, 6% of net income on that item.

Inredible really!
 

shortylickens

No Lifer
Jul 15, 2003
82,854
17,365
136
Diamonds. 9/10th's of them are stored and will never see the light of day. Those things arent worth nearly the MSRP.
 

jman19

Lifer
Nov 3, 2000
11,222
654
126
Movie theater concessions are way overpriced but some of the math in this thread is lol worthy.
 

silverpig

Lifer
Jul 29, 2001
27,709
11
81
Graphene.

Last I checked it sells for $10/sq micron. It's .13 nm thick.

There isn't enough money in the world to buy a gram of it, and it's just plain old carbon.
 

TechAZ

Golden Member
Sep 8, 2007
1,188
0
71
Yeah, but that's not the first version of the item to be used. I assume hospitals have been doing those types of surgeries and inserting those stints for decades.

You can't include R&D for all previous versions of the product.


A large % of the profits go into future R&D and product development cycles. Of course there are still huge profit margins, thank the insurance industry.
 
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