Is The Price Right?

--Save big with lesser-known brands

What do Huggies, Pampers, Luvs, Wal-Mart training pants, Tide, Gain and Cheer have in common? They’re all manufactured by Proctor & Gamble.

Upon learning that many competing brands are made by the same manufacturer, or contain the same ingredients, consumers gain the choice of paying less for like products. Granted, design, ingredients and quality may differ, but the Wall Street Journal (May 7, 2009) concludes that, “...often the main difference is marketing—and price…”

Nearly identical products can carry vastly varied price tags. Armed with this knowledge, consumers can better follow their household budgets, manage their spending and reduce debt. Credit counselors at ClearPoint Credit Counseling Solutions share some marketing secrets.

Vehicles

“Twinned vehicles” are made from the same chassis with most of the same interior parts, but with a different metal skin and interior design (www.Edmunds.com). Automakers save production costs by producing various models under different brands with varying badges and styling.

Such similar vehicles include the Toyota Matrix and Pontiac Vibe; The Pontiac Solstice and the Saturn Sky, the Ford Expedition and Lincoln Navigator and the Jeep Liberty and Dodge Nitro.

Choosing the lesser known brand on the same basic vehicle can save you several thousand dollars. When you are considering purchases by price, don’t forget to consider the projected resale value as well as the warrantees.

Same manufacturer, different brands

When shopping for appliances, consider that the Whirlpool Corporation manufactures under the Kenmore, KitchenAir, Maytag, Magic Chef and Roper brands. The highest end Kenmore products, for instance, usually rival Whirlpool’s products.

Although it’s not always obvious, try asking the salesperson if he or she knows the most comparable models for comparison’s sake.

Private Labeling

Alcoa makes tin foil for Reynolds as well as for private-label (store brands) retailers. Likewise, Target created their own Archer Farms food label and the Trutech electronics brand.

As consumers learn that retailers often manufacture goods under their own label and then re-brand and sell them for less, private label goods are gaining popularity. A Nielsen Co. study from 2008 reveals that 63% of consumers believe a private label's quality is as good as name brand quality, while 33% said they consider store brands to be of higher quality than name brands.

Compare name and store brand items—from cough syrup to tissues—and see if you really prefer the more expensive choice. If you aren’t satisfied, chain stores will allow you return any of their store brand merchandise. Most times, the biggest difference is the less appealing graphic design of store brand packages.

Purchasing the average private label discount versus national brands is about 30 percent. (IRI Times & Trends, Sept. 24, 2009). Saving $30 on a $100 shopping trip every week would add up to a whopping $6,240 a year!

Off-Brand Medications

Many of us are familiar with generic drugs simply because our health insurance won’t cover the name brand options. We know the generic versions have the same effectiveness as their highly-marketed big name counterparts.

Like cars and appliances, in many instances, the brand and off-brand drugs are made in the same factory, but placed in different boxes.

In addition to often containing identical active ingredients, products sold inexpensively under a relatively unfamiliar brand (off-brands), also are strictly regulated by the federal Food and Drug Administration. Why pay more for a brand-name drug than for an off-brand with identical ingredients?

The financial specialists at our consumer credit counseling service (CCCS) agency work with their clients to develop an action plan to get out of debt. Reducing expenses is a key element in that plan. Buying brands with the lowest advertising budgets and production costs is a savvy method of doing so.

For a confidential free online credit counseling session, simply enter your personal information. ClearPoint is a national accredited business of the Better Business Bureau and a member of the National Foundation of Credit Counseling.