Here’s Time for Brand Name Spills and Classic Must-Buys

Editor’s Note: This story originally appeared on Penny Hoarder.

What’s in a name? A lot, actually. Especially when it comes to grocery store brand versus name.

We tend to act differently than other brands when we buy just because of the name on the package – and the reputation that goes with it – because of clever advertising.

We buy Bounty paper towels because they’re “quick to pick up” and Frosted Flakes because they’re “gr-r-reat.”

But on the shelves next to those items you can often find a store-brand version of the same that costs less – sometimes much less.

So which is better – brand name or off brand? Let’s dive in to find out.

Are Store Brands As Good As Brand Name Brands?

No, not always! Many times, store brands will use the same formula as the brand name, but are able to sell at a cheaper price because of the quality of the ingredients or materials used to make that formula.

In some cases, the store brand will be released from a completely different company or manufacturer, striving to replicate the brand name – and be very close.

Sometimes, it’s the exact same product with a different label. In these cases, the store brand is only as good as the brand name.

Even if store produce isn’t always “right,” you may find that it’s close enough to your liking.

Most judgments are logical. There is some trial and error involved, and in some cases you may go back to the premium paper towel after trying the regular version because you find that the Bounty really picks up more, and faster.

Why Store Brands Are Less Expensive (and How They Keep Prices Low)

Many times, retail brands keep costs down by using low-grade ingredients or materials to make the product. In some cases, they will work with people who are already making the product to put a store brand label on it so they don’t incur all the costs of setting up their own manufacturing facilities.

This helps the store to offer price differentiation.

The idea of ​​price differentiation is that some people will be loyal to the brand and pay a higher price no matter what. Often, you can make a big profit with these customers – even if you pay less for high-quality ingredients and incur the cost of a bigger marketing budget.

But what about those people who will only buy if the product is more affordable? This is where the store product comes in.

By offering similar products at different price points, you capture a larger share of potential buyers. If you do this in high volume, this strategy can help bring in more profit even if the store’s product provides the store with less profit per unit.

Other Ways to Save on Stores and Home Goods

There are other ways to stretch your grocery budget beyond buying store-bought products. An app called Upside can help you get real money back when you go to the grocery store, as well as when you eat out or fill up your gas tank.

The Upside can help you earn cash back offers at thousands of restaurants and grocery stores, making your everyday expenses even more manageable.

And if you’ve ever bought groceries or household items online, you can use Capital One Shopping to find out if you’re paying too much. Just add it to your browser for free, and before you check out, it will check other websites to see if your item is available cheaper.

Keep Products That Are Almost Always Successful

To get a sense of which store products are preferred over others, we turned to Penny Hoarders.

Another said she had always liked Jif smooth peanut butter, but was sold when she tried her store’s smooth peanut butter, which was less than $2. He described it as “good, if not better.”

His opinion follows. Peanut butter is the only food in America that has a “Standard of Identity” (SOI). That means before it can go on the shelves, it has to meet certain FDA metrics.

Peanut butter in particular has certain high percentage metrics that make most brands equal. Peanut butter must be made from 90% peanuts and no more than 55% fat to make it onto American shelves.

If a food item has SOI, you may have a hard time telling the brand name in the store. Here are some foods that contain SOI, although not an exhaustive list:

• Milk and cheese
• Many bread products
• Milk chocolate
• Canned and frozen vegetables
• Noodles and macaroni
• Ice cream and sherbet

However, food items are passed.

For example, Penny Hoarder Jobelle Collie said she’s partial to Dove bar soap, Olay moisturizer and Palmolive green dishwashing liquid — but buys regular trash bags and office supplies. That makes sense to this writer — number two is pencil number two, even if it doesn’t say BIC on the side.

One of the best brand products around is Kirkland batteries. Back in 2016, Duracell agreed to make this brand for Costco, and many consumer tests since show that Kirkland is doing well with the brand name.

Whether they were built using exactly the same materials has not been officially confirmed. But since the performance is so good, that technology may not matter much.

Brand Name Items That Are Often Worth the Splurge

Jobelle was not alone. We found that among our community members, the most persistent brand name item they wanted to buy was their beauty products. Although sometimes there is a store brand product that actually works as well as the brand name and has the same ingredients, we all think this is a smart move.

While trash bags and notebooks may not be too dangerous for your health, anything you put on your skin can get into your bloodstream.

It feels OK to want those high-quality resources in these situations. (This is also why you should be careful about buying beauty products from online-only sellers, where the standards aren’t always as strict as they are off the shelf in a physical store.)

Another preference for a brand name may be individual and personal. If you have a picky eater, they can tell the difference between cookies made with Great Value flour versus Gold Medal. Store brand cola may be fine for some people, but others will depend on anything other than Coke.

Regional options are available, too. Ketchup is a good example. It’s technically a product with an FDA SOI, but try offering a store brand (or worse – Hunt’s) to anyone in Pittsburgh, and they’ll send you for the hills.

In the Golden Triangle, it’s Heinz or bust, and the regional palate can tell the difference.

Tips for Deciding on Store Brand Vs. Product Name

There are certain products – such as Kirkland batteries and basic items such as milk or salt – that do not really justify the use of the brand name.

But for many other things on your shopping list, you’ll have to prioritize your budget based on your preferences. If you’re really looking for a brand name shampoo, you can probably skip the knock-off plastic bags.

If you prioritize using your ketchup, maybe you can buy store-bought tomato sauce and add herbs and spices while boiling because you have no choice when it comes to spaghetti night.

You’ll also want to consider the actual price difference combined with coupons. At Publix, the difference between the store brand and Jif was just $0.07 when compared in St. Louis. Petersburg, Florida. But at Walmart? The price difference was $0.92.

One of those types of stores saves you a lot more money than the other. If you have a coupon that gives you $0.50 off a Jif when all is said and done, that will still be cheaper than the Publix store brand – but not Walmart.

Smart Shopping is not about labels

At the end of the day, store brand versus brand name products in any given category does not make you a better person or a smarter consumer. More to your preference.

Because while some products like Kirkland batteries may be brand name, many times downgrading from name brand to off really means sacrificing a little quality.

It’s all about trial and error to find out where that adventure is worth it for you and your family within your budget.