My parents always taught me that you get what you pay for, and that it is better to save your money for name brand items than to go out and buy cheaper, generic versions of consumer goods. I've always followed that creed, but now that I'm an adult, I've also discovered that there are times when name brands are bargains. Just because an item is expensive, it's not necessarily better.
I have a friend who always buys the least expensive version of big-ticket items, whether they're televisions, appliances, or jewelry. Over the years, I've probably watched her spend over ten thousand dollars on off-brand merchandise. Her argument for doing so is that, when you buy name brands, you're simply paying more to support the brands' advertising campaigns and profit margins. She feels as though off brands are made by the same people, with the same components, as name brands, and are therefore better values.
To some degree, her rationale makes sense. The suggested retail price of name brand items certainly includes "invisible" costs, like advertising, and definitely takes a publicly traded company's bottom line into account. It's also true that off-brands may use the same third-party manufacturer and some of the same components as name brands.
I believe her argument falls short, however, on three fronts. First, although "some" of the components may be similar, it's almost certain that not all of the components are the same. The difference may be cosmetic, or it may be integral to the quality of the item. As a consumer, you simply don't know which it is. Second, generic brands are often simply inferior. Think about the store brands at the grocery store. They're almost certainly made by a larger, brand name food manufacturer, but in essence, they're second quality. If they were first quality, the manufacturer would put their own label on the product.
Third, the factor that makes the suggested retail price of name brands more expensive - the actual brand - is what offers consumers some measure of redress should something go wrong. You are, in essence, buying the brand promise (the premise of quality and customer service). A generic DVD player from a no-name manufacturer in Taiwan simply will not have the customer support or guarantee that name brands have.
My friend's experience is actually proof of my parents' adage. Although my friend buys her generic products at bargain prices, they simply don't last. She has had to buy twice the number of appliances and electronics than I have because hers simply don't last. And, when something goes wrong, she is invariably frustrated at the lack of customer support and the lack of options she has for repair or replacement. She often gives up, and goes out and buys another cheap generic version of the same product.
I would like to think my approach is better. I do save my money and buy better quality items, just as my parents advised. However, I watch for closeouts, for previous years' models, and for bargains. So, I avoid paying a premium for name brands, but am still assured of the quality and customer service that the brand represents. I can't say that I've never been disappointed in my name brand bargains, but I've certainly had a vastly better experience than my generics-only friend.
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