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Brand Name or Generic Brand: Which Is Better?

National Iced Tea Day: Brand Name or Generic BrandSummer is rapidly approaching! Grab your favorite ice-filled pitcher and pour yourself a glass of sweet iced tea. Since today is National Iced Tea Day, we’ll discuss what’s better: brand name or generic brand of iced tea. Your decision to buy generic versus brand name products could cost you, especially if you already struggle with consumer debt. Lets dive into brand name iced tea and generic brands, to see which is better.

How to Decide: Brand Name or Generic Brand

What Do These Names Mean?

Before deciding which iced tea to buy, let’s explain the difference between brand name and generic brand. Brand name items are products made by well-known companies. Generic brands are produced as an alternative with little to no advertising. Brand name items are more expensive than generic brands because they are more popular and often associated with status, so people want them.

Which Is Better Quality? Brand Name vs. Generic Brand

People assume the brand name is better because it costs more. They think the price means it tastes better. The explanation is much simpler. Brand name products spend more on advertising. Ultimately, it’s up to the consumer as to whether it tastes better or not. Studies have shown that many consumers think generic brands are just as good as brand name items, and they often taste very similar. If the taste is similar, why spend more?

How Much does Each Cost?

Depending on which brand you buy, iced tea prices vary. On average, generic products are twenty-five percent cheaper than brand name items. With these savings, you can put more money on essential groceries. You can use it for other vital financial needs too, like paying off debt! If you want to be bold, try making iced tea yourself from scratch. This saves money and is a healthier alternative!

Bottom Line

Grocery shopping shouldn’t be a hassle. We often believe we must spend big money on big brands. There are always alternatives to popular brands. Generics are more affordable and even taste similar. So don’t fret about not having Snapple® or Arnold Palmer®. Just grab their more affordable counterparts, and enjoy each sip. Your wallet will thank you!

If you struggle to get out of debt, ACCC’s debt management program can help! Call 800-769-3571 to speak to a certified credit counselor today.

ABOUT AUTHOR / Andi

Andi is a Marketing Assistant at ACCC. He is passionate about supporting financial literacy efforts and helping to educate people on the Talking Cents blog!

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