Ian Wason, DebtBusters CEO, speaks to Fin24 on the debt spiral. Millions of South African consumers are unable to break free from debt and find themselves more and more indebted as time passes by. The average age of our clients has come down from the age of 44 in 2008, to 34. This shows us […]
21 November 2013
So you’re a savvy consumer who always keeps an eye out for shopping specials, but do you buy no-name products and stock up in bulk? If not, these are two strategies you could add to your money-saving efforts.
Consumers are often seduced by attractive packaging and the implied quality offered by big brand names. However, you might be surprised to learn that many no-name products are almost – if not 100% – identical to their more expensive counterparts.
Why no-name is cheaper
Generic brands are cheaper than other brands for several reasons. When a company launches a product, the resources going into the design and manufacturing of the packaging – among other things – are factored into the selling price.
When it comes to medication, you’re also paying for the research and development and other costs involved in developing the drug. Once a patent has expired, other manufacturers are able to produce an identical version at a fraction of the price.
Supermarket chains are able to pass huge savings on to their customers by offering no-name product ranges. One of the ways they do this is by striking deals with manufacturers to buy goods that they then package themselves. These chains are also able to leverage their existing transport infrastructure to further reduce costs.
Best house-brand buys
You can save on the following essentials if you choose a no-name brand:
• Long-life milk
• Dry goods like pasta, cereals and rice
• Toilet paper
Why buying in bulk helps you save
Packaging is largely responsible for the lowered cost of bulk-sized items. Less wrapping means a lower price for the actual product. Fewer trips to the shop also mean you save on travel expenses.
There are some items which are perfect for bulk buying and others which are not necessarily the bargain they might appear to be. Nobody wants to be stuck with a catering size mayonnaise jar that needs to be finished before it expires.
Storage can also be an issue. If you want to commit to this strategy and buy more than one or two household items in bulk, you’ll need sufficient space to store your inventory.
Best bulk buys
Below is a list of items that are ideal for buying in bulk:
• Dry goods like cereal, pulses, pasta and rice
• Toilet paper
• Pet food
• Toiletries like shampoo, shower gel, etc.
There are many reasons to choose generic brands and buy in bulk. Most shops that have in-house ranges offer a money-back guarantee, so you can be sure you’re getting the same quality. Do the maths and you might be surprised at how significant the savings are if you apply these strategies.