You think jewelers and furniture stores have huge margins?
 Check out spice prices. Compare what you pay in a grocery store to what the REAL cost is at places like Costco or Wal-Mart.
Consumer Reports – a must read for consumers – recently did a study on spice prices and these are examples of what it found:
Pure vanila extract is 35 cents an ounce at Costco compared with $3.34 for McCormick’s.
Oregano at Wal-Mart is $1.10, at Spcie Islands the same amount is $7.32.
Got it?
This is great advice and a clear example of how much packaging and distribution costs add to many consumer goods. I would add one caveat, though. Something like vanilla extract is a super deal bought at Costco, but herbs and spices might not work out so well for the average cook. The extract, which is preserved by its alcohol content, retains its flavor virtually forever, but the essential oils that provide the flavor in dried herbs and ground spices fade over time. That big jar of cheap oregano won’t turn out to be so cheap if you end up throwing out a large portion of it because it has become too insipid to adequately flavor your recipes.