Soda, which is even more than 10x the actual cost to the business. When I worked in a gas station in the 90s the cost for a 32oz soda in syrup, machinery, water, and maintenance was 3 cents. The cup, lid and straw cost 7 cents, so the drink as a whole cost the business 10 cents and was sold for $1 which is a 1000% markup.
Since sodas in restaurants go for around 3$ with refillable glasses I can’t imagine they aren’t marking that up somewhere between 500% - 1000% (5x to 10x).
No it isn’t. It is literally accurate that some of the stuff is marked up really high and other stuff isn’t. That was literally the point, and you clearly don’t like being wrong and want to make the argument about something than the markup.
The point that other costs are significant and the markup is necessary would be good to switch to, but your point making a few dollars off a soda isn’t much is wrong because businesses do make most of their costs back from certain items with high markup as that is the cost of doing business.
Overall they are on thin margins, which does not mean they aren’t marking up some specific items many times their initial cost. In fact, if they didn’t mark some stuff up that much they would go out of business.
But an average of thin margins overall because the building, tables, A/C, and other overhead is more than the good doesn’t mean they don’t have a high markup if you look at literal cost to retail pricing.
When you have an average, some things are marked up more and some things are marked up less. Some things that restaurants sell are barely marked up at all, and others are marked up a lot more. Hell, somethings cost them and they provide them at 0% of the cost like sauce packets!
By your five year old child logic they must get those packets for free because surely everything has a 200-250% markup!
Soda, which is even more than 10x the actual cost to the business. When I worked in a gas station in the 90s the cost for a 32oz soda in syrup, machinery, water, and maintenance was 3 cents. The cup, lid and straw cost 7 cents, so the drink as a whole cost the business 10 cents and was sold for $1 which is a 1000% markup.
Since sodas in restaurants go for around 3$ with refillable glasses I can’t imagine they aren’t marking that up somewhere between 500% - 1000% (5x to 10x).
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No it isn’t. It is literally accurate that some of the stuff is marked up really high and other stuff isn’t. That was literally the point, and you clearly don’t like being wrong and want to make the argument about something than the markup.
The point that other costs are significant and the markup is necessary would be good to switch to, but your point making a few dollars off a soda isn’t much is wrong because businesses do make most of their costs back from certain items with high markup as that is the cost of doing business.
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Overall they are on thin margins, which does not mean they aren’t marking up some specific items many times their initial cost. In fact, if they didn’t mark some stuff up that much they would go out of business.
But an average of thin margins overall because the building, tables, A/C, and other overhead is more than the good doesn’t mean they don’t have a high markup if you look at literal cost to retail pricing.
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ON AVERAGE.
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When you have an average, some things are marked up more and some things are marked up less. Some things that restaurants sell are barely marked up at all, and others are marked up a lot more. Hell, somethings cost them and they provide them at 0% of the cost like sauce packets!
By your five year old child logic they must get those packets for free because surely everything has a 200-250% markup!