Outdoor Adventures marks up life preservers by 75%! They buy them for $20 and sell them for $35. That's quite a jump to ensure maximum profit.
The markup on life preservers at Outdoor Adventures Clothing Company is a hefty 75%! This is calculated by subtracting the cost price ($20) from the selling price ($35) and then dividing by the cost price, all multiplied by 100% to express it as a percentage. So, for every $1 spent on a life preserver, Outdoor Adventures makes a profit of 75 percents.
This high markup strategy is common in outdoor gear stores, where customers are often willing to pay a premium for quality and safety equipment, especially life-saving items like life preservers. However, it's important to note that not all items in the store will have the same markup percentage. Bulkier or less essential items may have lower markups to attract more price-conscious customers.
Ultimately, the decision of whether or not Outdoor Adventures' pricing strategy is fair is up to the individual customer. Some may be willing to pay the extra cost for peace of mind, while others may prefer to shop around for a better deal.