what is it called?

azamc

azamc

azamc

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Joined
16 Mar 2007
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721
hi,

what is it called when stores like tesco and sainsburies sell economy items like beams and biscuits that are actually the same thing as the branded stuff?

does anybody have a detailed source of information on it so i can read it up.

sorry if im unclear

thanks

azam
 
But how many are the same though, usually same factory but different recipes. Things like beans you just have to look at the watery sauce.
 
LOSS LEADER

The product is essentially losing the store cash, but they make it back because the people that come in to buy the cheapo crap often end up spending money on other things they weren't originally intending on purchasing.
 
I'd disagree. A Loss Leader is a product sold to get you in the shop in the first place.

To the op, Manufacturers sell excess factory production time to manufacture own brand products for retailers. They need their factory's to be running 24h a day to make them profitable. Yes, many own brand products are very close to premium brand products albeit altered slighly.
 
I can't remember where I saw it (moneysavingexpert?) but quite a lot of Tesco Smart Price goods are identical to their middle / Finest ranges as well. It's cheaper to make one product and brand it three times then it is to separately manufacture or buy three different recipes.

Not sure if it's the same now but apparently packs of chocolate bourbons are one example.
 
seek said:
Which is EXACTLY what I said.
Click to expand...

But the OP was asking for what its called when a company rebrands stuff as their own, rather than simply selling below cost. You could rebrand and reduce the profit margain while still making a profit, so technically it would not always be a loss leader.
 
iviv said:
But the OP was asking for what its called when a company rebrands stuff as their own, rather than simply selling below cost. You could rebrand and reduce the profit margain while still making a profit, so technically it would not always be a loss leader.
Click to expand...

Yeah I know what the OP was asking for. My reply was based on the fact that his vague post may not be a good indicator of what he actually wanted to know.
 
I know that years ago, tesco's value beans, came from the same line as heinz beans, the only differences being that tesco's didn't have the same herb mix, and there was more water in the sauce, but otherwise, the same..
 
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