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Posted 2 November 2020
Generic brands might not be fancy like all these name brands, but they’ll surely save you money. Corner stores and major retailers have these products sitting on their shelves, and you can take advantage of them. They know that not everyone has the money to afford the big guys products, so they decided to make their brands or just have these generic products with their name or logo on them.
There are many reasons a significant retailer would do a thing like this. It could also be to maximize income. They own the brand, and they know people will be attracted and buy.
Most of these products are cheap, and it doesn’t mean they are low-grade products. There are many reasons why generic brands are cheap and why you should buy them.
Of course, when you buy these brands, you’ll eventually save a lot of money. You can read this article by Dave Ramsey to see how much you can save when you buy generic brands.
Things to know before you buy generic brands:
Generic brands taste the same just as the high-end brands. However, if you are loyal to these big and popular brands, you might say they don’t taste the same, but they do. Ingredients are of the same quality, and they also have passed through the necessary quality checks, and they are okay for consumption.
When you walk up to these products in stores, you’ll see a big difference in packaging. Sometimes these products just have a tag on them. For example, a product could have a label that says “milk” on it, and that’s all. Sometimes, they don’t even have anything on it, just the price tag. A good example could be an umbrella, clothes, and hats.
Some people who love deals wonder why people still choose to buy expensive brands and not generic brands. A good reason could be that these generic brands are not attractive enough to get their attention.
Below are the reasons why generic brands are cheaper.
1. They Don’t Advertise
Every year millions and even billions of dollars are spent on advertising products (Name brands) worldwide with that kind of awareness and the reach of buyers who walk into stores with an intent to buy these brands advertised. It leaves these generic brands behind.
However, the generic brands have loyal customers. The advertising of these name brands can easily influence people’s decisions.
The generic brand’ owners see no reason to advertise; instead of promoting their products, they just advertise their trademarks or locations, hoping that people who recognize their brands will also buy other products they sell.
2. No branding
Some factors go into place when branding. Not just the look but the name of the product could make a big difference. However, some of these stores or retailers with these products have store brands. These products have a feel of branding to them. But sometimes, the stores and retailers don’t have time to brand products, so they just label them. These could be to save money they would have used to brand the product.
3. The competition
Competition in the market determines the price of a product. Brand names are usually selling, and sometimes they sell directly to the consumers. You can see what’s happening on Amazon. Nowadays, we can see big companies moving their businesses online because people love to buy there. It used to be that these retailers or local stores will carry their brands and take a fee, but now, these brand names have their stores online, and they ship directly to their customers.
It’s now cheaper for them to make their products and sell them to their customers. Although they still have their products in physical stores like Walmart and Kroger, they don’t depend on them anymore, unlike before. Now, every major brand selling products and even services are on Amazon.
These stores and significant retailers see this, and in response, they lower their products’ prices to compete. But people still wonder if price difference means quality. Because of these in the mind of customers, brand names have taken this to heart. They have made their product look more attractive and even added more to what they are selling, quantity-wise.
The store owners or big-box retailers know that they might be in the red if they increase their product size. They have tried to place their products on shelves that make their products very visible. This tactic is to make buyers see their products and buy them. This method is working for some of the big retailers. Walmart’s Great Value brand brings in billions of dollars every year for the retailer giant. They made the Great Value brand to make various products to meet customers' demands at a lower price.