Five Leading Retail Rip-Offs

(CBS)  People in penny-pinching mode have probably cut out a lot of obvious purchases and expenses, such as fancy dinners, premium cable, etc.

But there are still items out there that even the most price-savvy consumer is probably over-paying for.

You may be surprised at the big markups Early Show financial contributor Vera Gibbons found on some very common products.

Retailers, she explained Monday, put steeper markups on some items than others in hopes of turning a profit.

But, Gibbons says, while that's understandable, it doesn't mean you have to play into their game.

She identified five common purchases in which most of us are simply paying too much -- and offered strategies to keep from being taken to the cleaners:

MOVIE POPCORN

You know movie popcorn is expensive. Anytime you're a captive audience -- the baseball game, the movies -- you're paying more than you would for any food for sale there. But you probably don't realize how much you overpay. But once you hear this -- you may decide this isn't a good use of your money!

Or, you may join the growing ranks of people who are giving up trips to the theatre all together. The number of subscribers to Netflix, the DVD delivery service, climbed 26 percent in the fourth quarter from the same time last year. Rent a movie and make your own popcorn -- you'll save a bundle for sure.

The average markup for popcorn in theaters is -- 1,300 percent!

WINE IN RESTAURANTS

If you've ever perused a restaurant wine list, you know that bottles cost more than they would in a wine store. The Wine Institute says to expect a markup of 100 to 200 percent, if not more.

Markups aren't consistent for each bottle. Often, the cheaper the bottle, the higher the markup. A 200 percent markup on a $10 bottle still puts that bottle in many customers' price-range, while a 200 percent markup on a $60 bottle doesn't.

Also, the Wine Institute points out, 80 percent of wine sold in restaurants is sold by the glass. Markups are even higher on glasses than bottles -- upwards of 300 percent -- because of spoil/waste issues. If a restaurant doesn't pour the whole bottle, it may need to throw it away.

Avoiding popcorn at the movies is one thing, but no wine with dinner?! That's not an option for some diners! Check to see if your restaurant allows you to bring your own bottle of wine. Even if you have to pay a corkage fee, you'll still be getting a better value for your dollar. Alternatively, some states and restaurants allow you to take an open bottle of wine home with you. Instead of overpaying for a glass or two of wine, consider buying a whole bottle so you can take it home and enjoy the remaining wine the next day.

PRESCRIPTION DRUGS

According to the National Association of Chain Drug Stores, the average price of a brand-name prescription drug was $119.51 in 2007 (the latest year for which numbers were available); the average price of a generic was $34.34. That means drug makers and pharmacies are charging you 346 percent MORE for the exact same drug.

According to a new survey from the Kaiser Family Foundation, about one in six people are splitting their pills in half right now. Clearly, any savings is going to be valuable, so be sure to talk to your pharmacist about generic versions of your drugs. Doctors do not always think to prescribe a generic drug but that doesn't mean one is not available.

We had a hard time tracking down a percentage markup for over-the-counter drugs, such as Bayer aspirin, compared to the drugstore brand. Consumer Reports says a general rule of thumb is that you'll pay 30 to 40 percent more for name-brand medications as opposed to generics. Other experts told us those numbers vary tremendously from store-to-store, but that the markup could easily be 50 percent or more.

Take a look at the boxes and compare the active ingredients and dosages. If they're the same, there is no reason not to buy generic. The name brand costs more due to packaging and advertising costs, not because it's more effective.

COFFEE

If you're patting yourself on the back, congratulating yourself for subbing out that gourmet latte with a regular cup of Joe, prepare to be disappointed. Yes, you're saving money, but you're still getting ripped off. Plain coffee is cheap: You'll pay no more than .55 a cup to brew your own beans. But a store like Dunkin' Donuts is going to charge you $1.65 or more for that same cup. That's a markup of 300 percent!

More people may be figuring this out: "Retailers have been selling Mr. Coffee's coffee makers faster than the company can ship them, says Matt Ragland, vice president of marketing, with sales of coffee makers and accessories rising almost five percent from last year," according to U.S News & World Report.

PRE-CUT FRUIT & VEGGIES

Pre-cut vegetables are the fastest-growing category of produce at supermarkets. And while the convenience of bagged salads or veggies already sliced for stir-fry may save you time, are they really worth the price? You're paying at least 25 to 30 percent more for these products, compared to buying the vegetables whole. Would you be OK with a grocery bill that's 25 to 30 percent higher?! Probably not, so don't settle for being ripped off here, either. Pocketing a few extra dollars each really adds up!

[akpals]

Here's the real way to save money-stop buying a bunch of stuff you don't really need. Cook your own meals, cut out a few snacks, and maybe grow a few of your own veggies and you may be able to eliminate some of those prescriptions.

[crystalapples]

Rip-Offs: Thats not really a good title for the items stated.
1.) Movie Popcorn. First if you are going to a movie theatre you are going for entertainment and are expected topay for it. if the popcorn is a rip off then you might just stay at home and wait a few onths and then see the movie on Paid channels or rent it. Popcorn is not a rip off - its stated on the price list and its not forced on you to buy it and you did not buy it mistakenly at the price listed. ALSO, just a reminder for Southern California movie goers - AMC theatres lets you take in foods/beverages so hey if you really want the home made popcorn make it at home and bring it in with you. I usually bring in a sandwich and bottled water AND I buy their popcorn once in a while just because I love all the butter flavors and hey I feel like I should support workers at the theatre - keep their jobs in place.

2.) Wine in Restaurants & Coffee: All part of a lifestyle you are paying for. You can always cut out what you feel you don't need. They are not rip-offs because you do not have to buy into them. I go for the occasional Starbuck and other coffees because I feel I should treat myselfonce in a while. Home made coffee is as good as yu can make for yourself but pampering yourself once in a while is good too.

3.) Brand & Generic Drugs: Its not right for you the say on televised (TV) media that its the same. Generic Drugs only have to meet FDA's limited standards in order to get it approved or labeled as a generic version of the brand drug. In most generic drugs they only have to meet around 70% effectiveness as the brand drug. I am not saying generics are bad. If you can afford brand its the best but if you cannot generics will have to do. Drugs affect the most if you alternate or switch companies. If you are taking a brand or generic of a certain drug and your body is used to it switching to a different label may increase or decrease the effect of the drug in your body just because it is made by a different company.

I have relatives that have been on brand drugs for over 20 years and one of the brand has gone out of business in the beginning of this year so they had to use the generic version and the generic has decreased affect on their symptoms. Thus in their instance the brand was working better. BUT if you have been using a generic forever and its been working fine its a better bet to stay using it as your body probably has adjusted itself to it.

We should just have a BIG GOVERNMENT overhaul (limiting pricing) of the prices of the drug companies.

[Samuel-HiLL]

levelheadmom, you must be a moron.

Generic drugs are a scam. Always ask your doctor to check the D.A.W box (dispense as written) or you end up with generics. I compared percoset and the generic version when I suffered a back injury. The branded version was obviously stronger then the generic and lasted an hour longer before wearing off. The difference was large and obvious. I've noticed a diff with antibiotics too.

As nbensinger noted, the difference could be attributed to binders and fillers that affect absorbtion. For a lot of conditions, the patient and their doctor may be unaware that they aren't getting the proper serum level of the drug because of this. The FDA should be doing ongoing and random testing of generics to insure they are comparable to the brand name drugs, including the binders and fillers. Not all generics are bad, but enough are that something should be done.

[levelheadmom]

nbensinger, you must be a drug rep....lol....

[nbensinger]

I REALLY wish you all would get it straight and correct about generic drugs. THEY ARE NOT THE SAME AS BRANDED DRUGS!!! If you would find out the correct facts that generic drugs can contain up to 30% more active drug or 30% less of active drug to be considered A rated generics. Then you have to take into account the binders and fillers that are used in generic drugs. Some of those either break down quicker than brand names or do not break down evenly in the gut. Therefore, people who are taking blood thinners, heart medications, birth control pills and the like, are NOT fully protected when using a generic drug. PLEASE retract that statement when talking about generic drugs versus brand name. There is a REASON why branded drugs are more expensive. They use quality materials and active ingredients. Find out why generic drugs like the generic fentynyl patch is not as reliable as the branded name. ETC. Please do a segment with some reliable physicians on what their findings are for generics. If it is a product like penicillin then generic is not a problem, but for life saving drugs, there is most definitely a difference!!!!!!!