Store Brand Price Expectation
General Thoughts and Fun Topics

Store Brand Price Expectation

financial literacy

I was browsing around a store today where it happened to be selling a lot of different brands of chairs including its own. In most cases, when I see a business selling its own brand of products I have this expectation that it should be more than ten percent cheaper than the well known brands. Generally speaking, my assumption is they don’t have the same marketing expenses usually and so purchasing its products should be a no frills kind of purchase.

In this case though the prices of the store brand product was only about three percent cheaper. While in most other cases I would probably go with the cheaper one, assuming everything about the item is adequate, in this situation would often end up going the the better known brand. Something about the store brand item only being a tiny bit cheaper makes me think that you are overpaying for it even though on its own it is cheaper than the brand name item.

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