When you’re cruising down the aisle of a supermarket, pushing your buggy along while glancing quickly at your grocery list, do you ever stop and think - why are no name brands able to sell their product at least 10-20% less than the brand name ones?
This my friends, I call the “marketing premium”. The additional advertising, overhead, manpower, branding, negotiating and other useless non-value (maybe I’m being a little unfair, but when it comes to consumables, if it isn’t cheaper, its not value adding) adding activities that drive the cost up. Sure, they add to the overall cost of the product, say on average 5%, but where does the rest of the 5-15% premium go towards?
No where, really. You’re paying a premium for an “illusion” founded on the fact that you think the product is “better” because said Brand Name company has convinced you of such. Take frozen waffles, my go-to breakfast choice, as an example. You don’t need Martha Stuart to figure this one out - they’re made of eggs, butter, oil, sugar, maybe soy extracts and probably some chemical compound that I can’t pronounce which apparently keeps the product last longer in your freezer. That’s it. I took the liberty to actually compare the ingredients found in the two types of waffles when I last did my grocery shopping. Results? They’re exactly the same. They probably even come from the same production line. It’s just that waffles from production line #1 goes into a No Name packaging and waffles from production line #2 goes into a Brand Name packaging which will get marked up.
If a No Name brand is able to mark it at $7.99 for a box of 48, then that’s truly what it costs. Compare that with the $10.99 that Eggo charges. And this goes without saying, but that $7.99 already includes a marginal profitability factor. So there’s already money to be made on this price. So why pay more for the Brand Name when you’re probably getting the same product, just packaged differently, and slapped with a marketing premium? The extra price you pay is so artificial, so man made and based on the premise that you think its “better”, but is it? You’re not getting extra ingredients out of out, it’s not going to taste any better, so why let the Brand Name rob another three of your dollars?
I’m not trying to convince you that No Name waffles are better. Nor am I in any way, shape or form an evangelist for them. Know what you’re really paying for before you begrudgingly shove an overpriced box of waffles into your buggy. Question what you see on the shelves, because in this society, everybody has their hand out to make money. No one’s doing anyone a favour. Realize that.