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Perki88 | Why do generic brands exist? |
I see generic brands side by side on the shelves with name brands, many of them appear to be manufactured by the same companies. Why would they create their own competition? |
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av8tr_66
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Generic brands exist because of one reason....profit margin for the retailer...period. Most generic, or in the business we call them "white box" items are bulk purchased from a manufacturer who agrees to sell them at a volume price but without any marketing costs, packaging costs, liability costs, and co-op advertising costs built into the price. The driving force behind the profit motive you ask??? Thin profit margins on nationally branded items because of price point advertising, competition, absorption of unplanned manufacturing expense (fuel costs, etc.). In other words, a retailer can not make the margin on an item that they must so that it will meet its fair portion of the corporate operation expenses. This is because of competition from their peer group i.e. Kmart vs Target vs WalMart on the same type of shampoo or can of corn or whatever. Private brands or white box items typically carry around 25-40% MORE margin than their branded equivelent. I know...its what I do for a living. We don't care if you can afford the item or not. White box items are ALWAYS AAA movers. You will buy them. If we can offer them at a price that is 20% lower than the branded equivelent and make 30% more when we sell it. We win. Thank you for this question. |
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Deliah
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Pricing but not all generics are created equally to the name brand. Sure read the package label and see the same ingredients but not all ingredients are created equally. |
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captsnuf
 |
simply to give us more of a "choice" people who are going to buy a name brand will buy a name brand and folks who are penny pinchers will buy something else... and they are pretty much the same sometimes.
sometimes the name brand is better, but who's going to do a side by side test? i probably won't, i'll continue in my penny pinching ways and buy cheap whenever i can. (except for that manfroto i intend to get soon....) |
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lidybeff
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It's more sales, it's the bottom line that counts in business. |
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berniemacatab
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it is to make more money off of the people that only buy brands and stick to brands, and charge a premium. Some of the generics are similar to the brands, but others are actually not as good. Some are absolutely horrible, like generic froot loops. It's pretty disgusting.
I think what they do is increase their market share and keep customers from buying the other brand names. the store bought brands are probably considered generic. |
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aftrisch2
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It gives manufactures a secondary market for their products, i.e. (Dole vs Store Brand) both could very easily be canned by Dole. Also it is possibly a status thing where you may have Name brand xx in your cupboard and I may have generic xx in mine, but both came from the same manufacturing plant. |
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misty c
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for ppl who cannot pay full price just for a name. they realise that some ppl will only buy stuff in a pretty package but others are bargan hunters. |
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cabbiinc
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Think about it. If you are your own competition, then it's win-win. You make a sale every time. Its like trying to create a false monopoly on a corner of the marketplace. |
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