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Thread: Mark - Ups

  1. #1
    ATO Member HarryChiling's Avatar
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    Mark - Ups

    http://articles.moneycentral.msn.com...ntTellYou.aspx
    Quote Originally Posted by MSN Article
    3. "Our markups are ridiculous."
    It's no secret that restaurants enjoy huge markups on certain items: Coffee, tea and sodas, for example, typically cost restaurants 15 to 20 cents per serving, and pasta, which costs pennies, can be dressed up with more expensive fare and sold for $25 a dish or more. At a fine-dining restaurant, the average cost of food is 38% to 42% of the menu price, says Kevin Moll, the CEO and president of National Food Service Advisors. In other words, most restaurants are making roughly 60% on anything they serve.
    It's not all gravy though. Restaurants keep only 4 cents of every dollar spent by a customer, says Hudson Riehle, the vice president of research and information services at the National Restaurant Association. The remainder of the money, he says, is divided among food and beverage purchases, payroll, occupancy and other overhead costs.
    Given the slim profit margin, many restaurants rely on savvy pricing to create the illusion of value. Putting a chicken dish on the menu for $21 will make a $15 pasta dish, where the restaurant is making a big profit, seem like a bargain, says Gregg Rapp, the owner of consulting firm MenuTechnologies.net.
    Here is an MSN article about the restuarant industry with some very interesting facts. They have a 60% mark up and yet they keep $0.04 of every dollar, it would be interesting to see the same numbers for our industry in an article. People would be suprised to see what the costs associated with making eyewear really are.
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  2. #2
    One of the worst people here
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    They have much lower prices, so their mark up tends to be higher. I mean think about it, how many cups of coffee do you have to sell to become profitable.

  3. #3
    Independent Problem Optiholic edKENdance's Avatar
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    I worked food services for about 14 years. As a coffee drinker that drinks his coffee black I was offended that I have to bear the burden of paying for people that take cream and sugar in their coffee but I got over it.

    OR DID I?

  4. #4
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    Well, let's see here. Would I rather pay for a "good" progressive, or settle for one that's less money, but not designed as well?

    Well, let's see here. Would I rather pay for a decent bowl of linguini for $20 or opt for some pasta-mush for $9?

  5. #5
    One of the worst people here
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    Quote Originally Posted by edKENdance View Post
    I worked food services for about 14 years. As a coffee drinker that drinks his coffee black I was offended that I have to bear the burden of paying for people that take cream and sugar in their coffee but I got over it.

    OR DID I?
    Ken, they always give us more coffee in the cup when we drinking it black.

  6. #6
    Independent Problem Optiholic edKENdance's Avatar
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    Not a creamers worth of coffee.

  7. #7
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    Markup percentages vary with the total price - on sv obtainable from stock lenses (and especially if you edge yourself) the markup is a high percentage, but low dollar volume - you have to have some minimum charge to handle that patient - on free form progressives with high index and a/r, the markup percentage is much less, because the retail price and gross profit are higher - the clothes you buy are usually "keystoned" which is a 100% markup (the rag business usually calls this 50%, meaning the cost is 50% of the price) - try getting the clothing store to re-alter the purchase any time, as many times, as you like

  8. #8
    ATO Member HarryChiling's Avatar
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    It's just interesting to see the reporter actually cover both angles by giving the mark-up which of course people look at and balk then what the business gets to keep $0.04 of every dollar. When the two are looked at you get the whole picture. I find that to be responsible reporting, usually the articles that look at the price of our industry stop there our cost vs the patient cost, which is decieveing to the client and makes us out as crooks.

    I applaud the writer for a job well doen in this instance and if you read the whole articel it does give some very interestig business tips that could be ported to our industry.
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  9. #9
    Independent Problem Optiholic edKENdance's Avatar
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    I'll see you all at the millionaire club after this thread.

    :cheers:

  10. #10
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    Does this mean I have to work for $1.35 an hour plus tips??

  11. #11
    ATO Member HarryChiling's Avatar
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    Quote Originally Posted by obxeyeguy View Post
    Does this mean I have to work for $1.35 an hour plus tips??
    Don't forget you have to tip out to the buss boys (fraame stylists), and bartender(lab guy) or your tables will be a mess(dispensary) and your drinks(glasses) will take forever and God forbid you have a runner(dispensing optician), they'll want a cut too.:D
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  12. #12
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    Here I am all of those people, so I should average about $8.00 an hour. maybe......:)

  13. #13
    ATO Member HarryChiling's Avatar
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    Quote Originally Posted by obxeyeguy View Post
    Here I am all of those people, so I should average about $8.00 an hour. maybe......:)
    You should make just enough to be able to afford a used '83 pinto (36 month financing) and a mobile home (rent not own), sprinkle a little food, alcohol and meth in there and we have the publics opinion of an optician.:D

    BTW - You need to siphon the gas cause if your buying you definately make too much.
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  14. #14
    Bad address email on file k12311997's Avatar
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    Quote Originally Posted by HarryChiling View Post
    BTW - You need to siphon the gas cause if your buying you definately make too much.
    Thanks Harry, that reminds me I need to pick up a siphon pump, sucking it out leaves a bad taste in my mouth.

  15. #15
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    Quote Originally Posted by obxeyeguy View Post
    Does this mean I have to work for $1.35 an hour plus tips??
    I wish!

  16. #16
    Manuf. Lens Surface Treatments
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    Restaurant addition......................

    I would say that the restaurant conversion into the optical would be that you do your own lens treatments, for whatever price, for UV to scartch resistant to AR coating slick coat and you can actually do the restaurant addition. Since the recession started many have done so.

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