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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