Money Monday: Why You Should Take A Second Look At Store Brands

I’ve been reacquainted with a childhood nemesis, and I love it. You see, as a kid I hated everything about store brand generics.

I hated the small oil slick on the top surface of the generic peanut butter. I resented potato chips that tasted only slightly better than cardboard. And who did they think they were fooling anyway? No self respecting five year old would ever mistake Choco-Puffys for Cocoa Puffs.

Perhaps this is the reason Consumer Reports funds that many people are still reluctant to give store brands a try. But you might be surprised. Things have changed. Store brands now rival their name brand competitors in taste and quality, and for good reason. Supermarkets have discovered gold in their store brands.

Grocery stores often clear more profit by selling store brands than by selling the brand name equivalents. This is why you’re seeing more generics in “prime” shelf real estate instead of stuck near the bottom of store shelves.

It’s the financial incentive that’s driving the quality of store brands.

Not only can supermarkets make more profit, but quality store brands create the store loyalty that’s so crucial in the cut-throat grocery industry.

I am, for example, hooked on Jewel-Osco chocolate chip cookies, which in my opinion taste better than Chips Ahoy. The Jewel-Osco raisins are fresher tasting than the Sun-Maid brand. Consequently, I’ve developed a reason to visit Jewel-Osco on my weekly shopping trip. This is exactly what the supermarket chains want.

Now don’t get me wrong. Some store brand products still taste awful. I’ll pay the extra 30 cents for a bottle of Coca-Cola rather than deal with the generic any day. And sometimes a name brand on sale will be cheaper than the store brand, but on a consistent basis store brands can provide a steady stream of savings.

As Consumer Reports indicates, store brands can save you 30% on average over brand names. With the average yearly family grocery bill topping $6,000, the savings can represent a nice chunk of change.

If you’re still hesitant, consider this little known fact. In an effort to promote their store brand products, most supermarkets offer a money back guarantee if you’re not satisfied. It’s a win-win situation.

So what are you waiting for? Give them a try. Your pocketbook will love you for it.

Do you purchase store brands, or are you a name brand only shopper? What are some of your favorite store brand items?

About the author

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping Black America achieve financial independence.

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