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August 20, 2006

Generic versus National



  

       Everyone knows that generic is cheaper, or is it? All generic really means is that there is not the major brand name attached to it. It does not mean that they use different ingredients or less costly methods of production. That is why comparison is so important. How you can do this is by dividing the price by the weight. Many retailers will do this for you on the price tags that are on the store shelves. For example, you might see a sign that says $3.50 and below it says $0.29 per ounce. It is the $0.29 that matters. The reason for this is that companies are always trying to look more appealing than another. One way that a company might try to seem more appealing is by putting a different amount in their package. For example, if company A is selling 12 ounces of cookies for $3.50, company B might decide to sell 10 ounces of cookies for $3.25. A hasty shopper might look at both bags of cookies and see that company B’s bag is $0.25 cheaper. However, company B is selling their cookies for $0.325 per ounce whereas company A is selling theirs for $0.29 per ounce. Therefore, while company A’s bag is $0.25 more overall, in reality their cookies are cheaper.

            Another thing to consider is that sometimes cheaper generic products actually can be better. One of my favorites is a store brand macaroni and cheese that costs $0.34. With the 3 tablespoons of butter and the ¼ cup of milk that it takes I figure it costs under $0.50 for the entire thing. The only problem that can occur when looking for different alternatives is that often you really do get what you pay for so you have to try a lot of bad things to find those few good ones.

 



 

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