10 Products With Big Markups
Coffee and tea
In most cities, the lines at any given Starbucks (SBUX), Peet's Coffee & Tea (PEET) or Dunkin' Donuts run deep nearly all day. American's love coffee and adore tea so much that they are willing to pay.
A 100-count box of Lipton Tea can be had for about $5.99, roughly 6 cents a serving. Nevertheless, coffee shops and restaurants charge anywhere from $1 to $3 a cup hot or cold, and even more for specialty brands or herbal varieties.
Coffee prices can fluctuate due to the volatile commodities marketplace (coffee futures hit a three-decade high of more than $3 per pound in May). But a decent cup of java will still only cost about 50 cents to make at home, while the average Starbucks, Peet's or Dunkin' Donuts pours you a $2 to $5 serving, depending on size, blend and add-ons.
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