Originally Posted by
GinFizz
I think you are confusing a percentage mark-up with a price-multiple.
A mark-up of 100% would be a price of 2x the actual cost (C), or numerically, price of C + {100*C/100} = 2C. Similarly a mark-up of 300% would be price of C+{300*C/100} = 4C.
Following that pattern a mark-up of 2000% equates to a price of 21C.
Assuming just the bottle cost of 2.5p that gives 21*2.5 = 52p. The price of 1.50GBP would be consistent then with a 2000% mark up if the water in the bottle has a value of around 5p, which doesn't seem too far off given that the price of tap-water is less than 1p per litre.
No I do know the difference. But there is a whole logistics chain which add cost to the bottle of water, one conponant of which is the bottle, add the label, moving bottle to water plant, deprecation of bottling plant, packaging, bottles to warehouse, warehouse to shop, etc, even before taking into account profit margins of the various suppliers.
If all retailers could get margins of 1000s% the high street would be in much better health.