Not as overpriced as we thought?

I thought about some that I thought were way overpriced, but maybe not:

Fancy restaurant: it’s just food, but you are paying for the building/room in a nice part of town (high real estate) and the specialist chef to prepare it. I would imagine their food costs would be higher, too (I assume they get fresher fish and better meat cuts).

Nike Sneakers: LeBron’s $90 million comes from somewhere, doesn’t it? Plus the marketing costs must be high for a high-profile company like that (wall-size posters).

What would be the product with the highest margin, lowest overhead, cheapest to create… yet is sold at a relatively high price. For my purposes, demand is not a factor. I want to keep it tangible… things built into the price.

Coffe, like Starbuck’s makes is a good example. Very cheap ingredients, little skill needed to prepare, yet several dollars a cup.

$100 bills? :smiley:

A lot of food products are wildly expensive in relation to their ingredients. How much does 12 ounces of water cost? Add a spoonful of sugar and two drops of color and flavor, and you can sell it as Coke for 75 cents a can.

New York has dozens, if not hundreds, of restaurants that are overpriced, often purely due to a convenient location. I stopped in at a convenient but touristy bar/bistro on 57th at 6th recently and was charged $10 for a mixed drink. And this with standing room only at said bar. In short, real estate runs the show here, and ofttimes you’re really being charged for the rental of the space you occupy.

Or you can leave out the sugar and flavoring and just sell it as regular water at $1 - $2 a bottle at many places around here.

Or market it as homeopathic medicine and charge $50.

My money is on popcorn yes, pun intended at a movie theatre.

Paying $6 for $0.06 worth of seeds popped in $0.04 oil, topped with $0.05 worth of fake butter and served a $0.05 paper bag.

I had an uncle who had stands in a subway selling hot dogs and popcorn. He referred to the popcorn sales as ‘printing money’ because it cost him less than a dime for product that he sold for over a dollar. prices quoted above are scaled upward for movie theater portions and retail price.

There are very high gross margins on perfume. A few ingredients are really expensive, but they’re used in tiny quantities.

There are costs other than “materials”. Labor is one of the largest segments (you want those poor workers to continue to live in the style they’re acustomed to, right?) And then there are intangibles like branding, and so on.