How would you react if you learn that the manufacturing cost of a product is 10 times lower than the price you paid to buy it? Ridiculous and unfair, right? Well, that is how companies get bigger and make unimaginable profits. Somehow, there is no whistleblower in the market to put out those manufacturing costs to the public so that they can understand how they are getting robbed. Just to give you an idea how foolishly we can shelling out our hard earned money, the following 10 products’ actual cost will blow your mind.
1. Smartphones –
You think iPhone X deserves to be priced at $999? Well, its manufacturing cost is $370 at the max. Not only iPhones, all premium smartphones are priced at 3-5 times more than the actual manufacturing cost.
2. Bottled Water –
There are some people who hate to buy bottled water because they know the prices are out of the world. It has been revealed that bottled water companies make 50 times profit by selling one bottle. It costs them hardly anything other than installing their filter plant. As a matter of fact, carbonated drinks make like Coca-cola makes a similar high profit.
3. Branded Clothes –
Some people are obsessed with branded clothing products and they diss local products saying they are low-quality clothing. But brands make 5 to 10 times profit by selling one piece of cloth. Next time, you might just start looking out for better local clothes.
4. Mattresses –
The mattress is a highly durable product and that is why companies try to make as much profit as possible. As a matter of fact, companies make 5 to 10 times on selling usual mattresses. But when it comes to luxurious mattresses, companies make 50 to 100 times profit.
5. Medicines –
By now you already know that you are paying an extremely high price for buying medicines and that is why many people opt for health insurance that pays their medical bills. You will be surprised to learn that there are certain medicines that cost a few cents but they are priced in dollars. Well, you can put the burden of extra cost on research, but still, companies make 20 to 50 times on certain medicines.
6. Popcorns –
Movies and popcorns are a perfect combination but at times, we end up paying more for popcorns than movie tickets. Popcorns that cost merely some cents are sold in multiple dollars making as much as 10 to 20 times profit.
7. Shoes –
People are very choosy about picking up the right shoe to wear. Just like branded clothes, companies make a huge profit in shoes especially the ones that say limited collection. It has been found that brands make 5 to 10 times profit is usual shoes whereas for luxurious and rich looking shoes, companies make as much as 50 times.
8. Greeting Cards –
Just like mattresses, we buy greeting cards only during certain occasions like Valentine’s Day, Friendship Day, and likewise. Therefore, companies have only a few days to make sales and profit.Similarly, people do not comprise spending some extra bucks to buy a beautiful card. The companies make 5 to 20 times profit in each gift cards.