To Save Money, Buy Branded Products

At first glance, the title of this post seems to be irrational. After all, you know that branded products cost much more than non-branded ones.How then could you save money by buying branded products?

Let me illustrate with sports shoes. Suppose you buy a pair of non-branded running shoes for $40.  You use this pair of shoes for your regular twice weekly jogging at the East Coast Park. Now this pair of non-branded running shoes is likely to be not too durable and of low quality. After perhaps using it for 6 months, the shoes start to tear from the rough usage. So you discard the pair of shoes and proceed to buy another similar pair. Over a period of a year, you would have spent $80 on sports shoes.

If on the other hand, you decide to buy a pair of branded sports shoes like Nike or Adidas. This may set you back up to $200 or more if you buy them from a regular store. However, you are wiser after reading my other blog post Buy Branded Sportswear at a Discount. As a result, you are able to purchase a good pair of running shoes for $69 from one of the factory outlet stores mentioned in the other blog post.

You follow your same twice weekly jogging routine at East Coast Park. After one year, you find that the pair of branded running shoes has gone through some wear and tear. However though the sole has worn a bit, the quality of the branded pair of running shoes looks like it could last for some time. Thus for the one year period, you would have spent $69 on sports shoes which could probably last for a while longer. Compared with the $80 spent on non-branded sports shoes, you have certainly saved some money. Not only that but the branded running shoes would be more comfortable to wear.

You could realise similar cost savings with purchases of T-shirts and running shorts for your jogging routine.A cheap pair of non-branded T-shirts may cost you $15. Buying a branded one at $30  at a factory outlet would be a wiser move. After a period of time, say over a year or two of regular use, you would have noticed that the branded T-shirt would have retained its colour and cutting. On the other hand, the non-branded T-shirt may have gone out of shape or faded quite a bit to make it look dowdy.

The periods mentioned in the above examples may not be totally accurate. However the durability of branded products lasting more than twice the duration of typical non-branded ones would generally hold true. In other words, non-branded products may be cheaper to buy in the short run but branded ones would provide better value for money in the longer run.

This logic should hold true of many other products. However products that deserve special mention include personal mobility devices (PMD), mobile phones, television sets, fans, air conditioners, furniture like leather sofa sets, etc. PMDs are at the top of the list as the risk of buying non-branded ones also encompass the safety factor. Many PMDs which caught fire were probably non-branded ones made by manufacturers which cut corners to reap higher profits.

The conclusion is that buying branded products save money. However avoid buying branded luxury products which includes an additional premium for the prestige factor. These luxury products usually have at best only slightly better durability than the other typical branded products. The higher premium that you have to pay for the marginal gain outweighs the advantage.

(Note: The author did not receive any payment or incentive from any company or organisation for their citation in this blog.)