Which type of product is more likely to have a bigger markup?

Trendy shoes are more likely to have a bigger markup due to several factors associated with consumer demand, brand perception, and market positioning. Trendy items typically capitalize on fashion cycles, exclusivity, and the desire for uniqueness among consumers. When a shoe style becomes popular, often driven by influencers or celebrity endorsements, retailers can set higher prices because customers are willing to pay a premium for items that represent the latest trends.

This willingness to pay for trendy shoes is often less about the intrinsic value of the item and more about the status and lifestyle it provides. Retailers and brands understand this psychology and tend to price these products higher to maximize profits, taking advantage of the specific consumer mindset that seeks out the “in” product.

In contrast, standard sneakers and discount shoes appeal to practicality and everyday wear, often resulting in more competitive pricing and lower markups. Used shoes typically have reduced markups as they represent second-hand goods whose value decreases over time, driven by availability and condition. Therefore, trendy shoes distinctly stand out in terms of markup potential within the market.