Private vs In-House Brands

Over the past few years food market stores have been creating their own in-house brands. Recently I went into a franchised food market store for a bag of Rold Gold’s pretzels which up until then I was always able to count on for a full pretzel selection. Not only was their Rold Gold’s selection severely lacking, I was pointed to the opposite side of the store for a full selection of in-house packaged items including nuts, potato chips etc. I quickly thought what’s going on here- Is this the way our food markets are going to play the game against brand names? Obviously it’s cheaper for the food markets to create their own in-house brands- why else would they do it? If they are able to create the same product as the name brands for much less, then how much are the name brands over priced? I would like to know how much I’ve been getting ripped off these past few years. Wait, who’s to say the in-house brands aren’t ripping me off. Most of these food markets aren’t paying directly for marketing and advertising for these items so why is it only 30 cents cheaper. It should be close to free compared to the name brands. Well to make a long thought process vey short, I walked out empty handed.

The point is that times are changing and business models need to adapt in order to stay in business. Maybe brand names are raising prices or going out of business but whichever way it is businesses in competitive markets are finding ways to stay in business while keeping prices low.

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