When you purchase a generic, grocery store brand product that is all you’re buying, no fancy name, no advertising campaign, just the product. No Name is usually the cheapest compared to other brands, but there are exceptions. Here are some conclusions I’ve come to on No Name products:
- They have found the most inexpensive way to make and distribute their own products.
- They compete on price and price alone.
- People don’t buy No Name products because of the amazing quality
- The perception is that the quality is below average.
- Because of the lower expectations, it is much more difficult to under-deliver
- Quality to consumers is a flashy label that catches your eye and a more expensive price point
- When your product doesn’t need a large advertising campaign, you can price it lower.
- When no extra effort goes into making the packaging of the product “pop” whatsoever, you can price it lower.
If there is no expectation of the standard of quality of a No Name product, you are rarely dissatisfied with it because the value (benefits/price) is quite high. Why is the value high? Because the benefits remain close to the same but the price is less, thus increasing the value of the product.
In whatever industry you are in you can attempt to compete on price but always know there is someone out there that can make your product cheaper and ship it cheaper. Instead, ad some value, tell a story, create an added benefit in your customers mind, then you can begin charging more.
