There are costs of production, transportation, storage, advertising, and more. Thus, costs also include several layers of profits. The selling price itself consists of a markup over the total of all costs, and it is normally based on a percentage of the total cost. Grocery items in a supermarket usually have a low markup, while mink coats have a very high one. High markups, however, do not in themselves guarantee big profits.
Profits come from turnover.
If an item has a 50 percent markup and does not sell, there is no profit. But if a cereal has an 8 percent markup and sells very well, there are reasonable profits. Bali, Playtex and specialty units of Sara Lee, Wacoal America, and the Warnaco Group have all been quietly laying off personnel as sales have been dwindling. The country's broadcasting officials weren't amused. Turkey's broadcasting watchdog announced the ban on Thursday, citing the show's seductive dream of easy fame as a possible threat to the education of young girls.