Like HowStuffWorks on Facebook!

Top 10 Marked-up Items in the Grocery Store


4
Cereal

Cereal is one of America's most popular breakfast items. It's convenient, kids love it and it's easy to prepare. But according to Entrepreneur magazine, cereal is marked up about 28 percent on average. And some brands are marked up even higher -- Kellogg's Corn Flakes, for example, has a 42.5 percent markup.

Like many products, the markup is a result of advertising and marketing costs. You'll notice, though, that many supermarkets sell generic versions of most brand-name cereals. The cost difference is major -- at one grocery store, a brand-name cereal was 43 cents per serving, while the generic was 20 cents per serving. Everything else about the cereal (ingredients, calories) was exactly the same, according to Good Morning America.

You'll have to look a little harder for the generic brands of cereal, because the big names use some of their marketing money to purchase the best spots on the shelves -- eye level for both adults and children, and featured on end caps. Look for generic on bottom shelves.


More to Explore