mark up.

12 07 2010

I’ve worked in several different retail clothing stores (GAP & Victorias Secret) but my time at Blickenstaff’s has taught me something I never learned in clothing…

Buy directly from the maker whenever possible.

The more middle men you throw into the mix the higher the end cost is going to be.

I will not get too specific here (it’s no bueno to throw around your company’s figures) but each time you add in a person in the chain of buyers and sellers your cost shoots up.

Here’s just a small example:

We sell salt water taffy for $8.99 / lb.
You can get salt water taffy online for $17.99 / 5lb.

Yeah. yeah, yeah I know there are shipping costs. Big deal.
Tack on another $10 and you got 5lbs. for $28.
Or in other words $5.60 / lb.

That’s just over half of what you would’ve been paying.
(It does help that when you buy in bulk as well – but that’s a whole different topic).

I sat there at work just wondering about all of the different items I could possibly get from the top of the long line of buyers/sellers.

Not much came to mind.

But it would be awesome if I could just get the wholesale cost for everything I bought.

Does anyone know if that’s even possible?

Anyways, the moral of the taffy story is:

Man who buys candy 3 links down the candy buying/selling chain OVERPAYS for taffy.

Overpaying for taffy isn’t a big deal – BUT since I’m attempting to be more prudent about money these days it obviously hit home.

“…Every prudent man dealeth with knowledge…”” (Proverbs 13:16)

? What items do you try to buy at the top of the chain and where do you go to get them?

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4 responses

12 07 2010
Chantel Ockerman

Haha, being an accounting major I definitely hear ya on all these ridiculous mark-ups! Electronics have the highest margin with clothes and food items following close behind. Like paying 2 bucks for a drink that cost the restaurant 35 cents! I definitely prefer to buy things from wholesalers, particularly my hair products. I buy fancy salon shampoo from the wholesalers for 250% the bottle size and 1/2 the price of what I would get from a salon. And I recently bought a Chi hair straightener from an international wholesale company for 75% of the price of a salon straightener. Another thing I do is watch for coupons if I know I’m going to be buying something more spendy: slickdeals.net, newegg.com, etc, and then right before I buy the product, I search in google for coupon codes and 9/10 times I can find another coupon code to knock my price down 15% or so.

That’s probably more of an opinion than you wanted… but I have definitely mastered the ways of a bargain shopper.

12 07 2010
Chantel Ockerman

PS > that is hilarious that you worked at Victoria Secret!!

12 07 2010
kylekealohaaldous

Thanks for the web sites!!!
I love your suggestions – I never thought to Google for possible coupons. It seems so easy, but could prove really valuable!

Oh yes, my time at Victorias Secret was…. AMAZING, to say the least : )

13 07 2010
Kailynn

My discount at the fabric store puts me close to wholesale price but still slightly higher than it. Do you get a discount at the candy store? I would love some taffy!!!! j/k! but not really! 🙂

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