How Much Do I Save By Buying Generic Groceries?

Wednesday, August 5, 2020

Groceries are an essential component of our monthly budget. With the rising inflation and expenses, it only makes sense to find new and innovative ways to cut on our usual grocery budget. One of the ways that many frugal customers are saving on their monthly grocery budget is by choosing generic brand products and groceries rather than its brand-name alternative. Over the years, we have come to trust and rely on popular brands and rightly so.

However, the changing times have compelled the customers to look out for cheaper options. Generic and store brand groceries are relatively cheaper without compromising on the quality in most of the cases. The problem with most of the consumers who turn down generic groceries is because they feel that since it is cheap, it must not be as good as its brand-name alternative. In reality, the truth can’t be further from this popular conception among the majority of the population.

We should not forget that the major difference between the generic groceries and its branded alternatives is marketing expenses and substantial profit margins. Generic brands are there to offer frugal consumers with a cheaper option without compromising on the quality, and it is as simple as that. It is one of the primary reasons why you mostly don’t see its television, media, and print advertisements often as compared to the branded items.

Big companies spend millions of dollars on marketing each year on various mediums. It is this cost that is added to the products they offer, and consumers end up paying for the advertisement they see. Generic brands and groceries do not have any such overhead or marketing expenses it needs to pay for. Moreover, the supply and logistics chain is much simpler, and its target market is relatively smaller, as well. It is this simplicity in operations, starting from production to packaging, which is what helps these generic groceries and related products to be priced lower. The savings they make are passed on to the customers in the form of cheaper products.

On the outset, the savings might not seem like much, but when you compare the difference annually, it makes up for a substantial amount. Add to it the compounded interest on the difference as well as the returns you can make when the difference is invested – and you would have saved a mini fortune. The generic product savings calculator here would help you calculate the amount you would have saved by buying equivalent generic products, including the investment returns and compounded interest of those generic product savings.

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