A common way to save money on groceries is to buy generic or store-brand items instead of buying name-brand items. Examples of store brands are Member's Mark (Sam's Club), Kirkland Signature (Costco), Great Value and Equate (Walmart), Private Selection (Kroger), and so forth.
Like most ways to save money, this piece of advice has exceptions: “It depends.” For some people, if given the choice of store brand and name brand, the store brand will be better all-around. For other people, the name brand will be better all around.
There's no way to know for sure which will be better for you unless you test it out.
Comparison testing: Finding out what works
One of the many tools that companies use to improve their products is comparison testing. They offer two products to a bunch of people and ask them which they like better. They then determine the “winner” and prioritize that product moving forward.
You can do this “store-brand comparison” thing yourself. As you buy a name-brand product (Cheerios, let's say) also buy the near-equivalent store-brand of the same item (Cheer Oh's, or whatever) and let your family test both of them out. If, after the test, there's a resounding “I can't stand the cheaper product” then you know there's a difference. If, on the other hand, there's no appreciable difference, or even, “I actually like the store brand better,” then you've won.
Store-brand comparison tests we've done
Here are a few experiments we've done to test this:
- Lactose-free milk. We like lactose-free milk better than the “regular” milk. (Or, rather, lactose-free milk likes us better than regular milk.) Walmart offers brand-name Lactaid milk, as well as its own Great Value lactose-free milk. We tasted no difference between the two, and the store brand was quite a bit cheaper. We'll buy Lactaid if the Great Value isn't in stock, but the Great Value is the winner.
- Toilet paper. As a guy, I really don't have a preference, but the rest of my family does. We tried a bunch of brands simply to find the one we liked the most. The cost of the toilet paper wasn't a big concern; we're not sensitive to how much this product cost.
- Medicines. I can't remember the last time we bought brand-name ibuprofen, aspirin, or acetaminophen. Add to that allergy meds, eye drops, whatever. With some prescription drugs, though, there can be a difference; not all generic drugs are functionally equivalent and it takes some legwork to get insurance to pay for one or the other. It also takes longer to “do the test” to see whether name-brand works better than generic, or the other way around.
- Antacid tablets. Walmart also offers a store-brand antacid tablet (comparable to Gaviscon). There was quite a cost difference between the two, but the store-brand just didn't sit well. We tried it, though.
- Dental floss. One brand of dental floss we use is Oral B Glide Pro-Health. Recently we found that Walmart sells a store-brand Equate Extra Comfort Dental Floss. (This test is actually mine. This particular kind of floss is the only kind I've found that doesn't get shredded when I floss.) The amount of product is the same in both kinds, but the store brand costs $1.50 less. The only difference I can tell between the two is that the Glide is a little bit mintier than the Equate brand, but I don't particularly care about that. So the Equate is a clear win for me. (Here's more on why you should take care of your teeth.)
Store-brand comparisons: Things to remember
Some things to remember when conducting your own comparison tests:
- Make sure everyone affected has buy-in to the experiment. If one or more of the people being experimented on don't want change, then the results won't be pretty.
- Realize there may be reasons for buying something besides brand loyalty. There may be ingredient differences that make one product more suitable for the other, even it's more expensive, for example. It's not all about cost.
- It's best to make it an open comparison. Make sure it's known what is being tested. I guess it can be a “double-blind” test where the actual product is unknown, or it can be simply “we're trying store-brand tonight.” But I've heard of some parents unilaterally swapping in a cheaper store brand but keeping the store brand packaging. It avoids the whole testing thing, but it teaches kids that name brand matters, which isn't necessarily true.
- Remember the bigger picture. You may end up buying something that tastes nasty. That's the cost of the experiment: one $3.59 item of something you wouldn't have bought otherwise. But then you know for next time. If you end up finding an item that's an acceptable substitute and saves you $2 every time you buy it in the future, then by the second time you buy that item, you're already ahead for the $3.59 mistake you made.
