The generic version of products was once almost comical, with the label simply stating what the product was causing many people to feel too embarrassed to purchase these items. Since then, these generic products have gone leaps and bounds to better compete with the name brand. Many people are proudly choosing the generic option over the name brand. Additionally, the term “private label” has begun to be used to refer to generic options. This gives the products an exclusive feel that consumers are more inclined to buy.
Times have been changing as prices have been hiking up across the board. As the costs of food, gas, personal hygiene products, and more begin to increase, consumers are looking for a way to save money anywhere they can. People are more apt to choose cheaper products than before to keep more money in their pocket, sometimes regardless of emotions towards a specific brand.
Quite often, generic products can and do rival the name brand in terms of quality. The differences are usually minimal, if at all. They are usually more affordable and allow consumers to save money without giving up quality products. These private-label products are lower in price because they don’t do any marketing. Think about some of your favorite products. Is there a commercial or even a jingle that gets stuck in your head? That’s a prime example of what most of the price difference between generic and name brands goes towards.
This encourages businesses to create more generic products as they seem to be becoming more popular than the once undisputed name brands. You would be surprised to know that frequently it is the name brand companies manufacturing the store brand items. This is beneficial for both sides of the coin. The manufacturer receives more business as well as slashed prices since they are buying in bulk, and the store is making money.
Additionally, store brands help create wider profit margins because of the fact that retail can avoid the costs that come along with organizing a national brand. This includes product development, advertising, marketing, and distribution. As stated previously, there is no need to create commercials or songs to encourage consumers to choose this option.
All of these factors benefit customers as well. Store brands are usually 30% less than the name brand. This is a win-win for the customer and the store as the store is bringing in money and the consumer is saving money.
A study conducted by the Inter Group coined the name “Private Label”. Some of the results were:
Many customers will compare the generic brand and name brand before making their purchase. With this in mind, women are more likely to take a look at the store brands and carefully review the prices before purchasing.
Name brand no longer means top quality. The statement “Brand names are not better quality” was agreed with by 57% of consumers. That figure has now bumped up to 64% in recent times.
Generic items are typically the same quality as name-brand items. You may find that certain products truly are superior when it comes to name brands, but it never hurts to try. Before you venture out for your next shopping haul, review some store brands that could help save you money.
Tips for Navigating Store Brands
Store brands aren’t all equal. While store brands can be just as good as name brands, this isn’t always the case. Just because one brand of generic adult diapers is not as sturdy and absorbent, it does not mean another will have this same issue. If the product can provide the same purpose whether it is a name brand or private label, choosing the private label benefits you in more ways than one.
Review prices on the shelves. This is helpful to make sure you are getting the best bang for your buck. Check out the price per unit price tag under the item on the shelves. This will usually tell you which product will be cheaper as it breaks it down to price per singular item.
Check the price. Double-check to make sure the store brand is truly going to save you money. For example, a name-brand shirt costs $15 but a generic brand costs $16. The price can vary because of size and style, so reviewing the prices is always crucial for spending the least amount of money on the same product.
Scope out sales and coupons. Sales and coupons are great ways to buy cheaper products. Especially if you buy a product on sale and use a coupon, you may be able to buy a name-brand item at the same price as the store brand, if not lower.
At the end of the day, consumers are not always driven by the price. We are typically emotional buyers and if we feel strongly about a certain item, we are far more likely to buy the name brand as opposed to the store brand. Regardless of this, taking a chance on generic brands is almost always worth it. The generic brand is usually as high of a quality as the name brand but doesn’t require you to break the bank.