Wal Mart replacing name brands with store brands? - Page 3 - PeachParts Mercedes-Benz Forum

MS Fowler · #31 02-17-2010, 07:11 AM

Quote:

Originally Posted by The Clk Man

That's what pisses me off, I consider it a treat if I can buy a steak. I work hard and even think that a round steak is good.

Round steak and a single malt. After a few glasses, you can't tell what cut of steak it is.

SwampYankee · #32 02-17-2010, 07:41 AM

Quote:

Originally Posted by aklim

Life is tough. If you are not fit to survive, die. It is that simple. The world does not care if you live or die just because a few idiots think the world does.

Or get too big to fail.

R Leo · #33 02-17-2010, 07:43 AM

Quote:

Originally Posted by MS Fowler

The have a very hard business model. That's what it takes to survive in a capitalistic economy.
Capitalism is tough.

Yes it is a hard model, but why? In the holy name of 'Save money. Live better.' it shifts most production offshore where manufacturer's employment ethics and manufacturing practices cannot be scrutinized.

You know the result.

R Leo · #34 02-17-2010, 07:46 AM

Quote:

Originally Posted by The Clk Man

I work hard and even think that a round steak is good.

That must be one of my round steaks, not one from Wal Mart.

Kuan · #35 02-17-2010, 08:11 AM

Quote:

Originally Posted by Skid Row Joe

That is incorrect. Private-labeling and private-packaging is a fact of life. Identical product as the name brand for way less money

Not fully correct either. In food at least, you cannot replicate the same name brand formula even if you wanted to. Maybe for a few million bucks yeah. Some ingredients are proprietary and are contracted so even if you think you could get some you can't because there's only so much.

In general, name brand food products also run lower tolerances. They may reject 0.001% wheat contaminated oats or 1/30,000 broken almonds, but generic oat cereal may use whatever oats come through the door and they'll just toss bag of almond rejects into the mix.

Same with manufacturing safety specs. The generic line may spec no metal contaminants but don't have a detector at the end of the production line but a name brand manufacturer might possibly have two.

aklim · #36 02-17-2010, 08:17 AM

Quote:

Originally Posted by SwampYankee

Or get too big to fail.

Since you mentioned it, maybe you can explain to me what that means. I don't think any company should be too big to fail. IIRC, the broke up Ma Bel because it was large.

layback40 · #37 02-17-2010, 08:18 AM

Down here Aldi (German chain ) has been opening stores. They only have their own brands. They are very cheap. It has dropped grocery prices where ever they open. Things like bread have halved in price. Their brands have better quality than the no label ones but are about the same price.
There are reports that some chains are extracting such low prices out of suppliers that their other brands are subsidizing them.
Its all good for the consumer though we are being told that once the home brands take over they will put the prices up.

HuskyMan · #38 02-17-2010, 10:38 AM

Quote:

Originally Posted by Kuan

Not fully correct either. In food at least, you cannot replicate the same name brand formula even if you wanted to. Maybe for a few million bucks yeah. Some ingredients are proprietary and are contracted so even if you think you could get some you can't because there's only so much.

In general, name brand food products also run lower tolerances. They may reject 0.001% wheat contaminated oats or 1/30,000 broken almonds, but generic oat cereal may use whatever oats come through the door and they'll just toss bag of almond rejects into the mix.

Same with manufacturing safety specs. The generic line may spec no metal contaminants but don't have a detector at the end of the production line but a name brand manufacturer might possibly have two.

which means this: sometimes one does get what one pays for. some products are priced up higher for a reason. the .17/ounce coffee buyer
serves a different market than the .80/ounce coffee buyer. both coffee, but each serves a different market. nothing wrong with that, except people seem to think they deserve something for nothing, and it just doesn't work that way in this old world........

davidmash · #39 02-17-2010, 10:49 AM

Quote:

Originally Posted by Kuan

Not fully correct either. In food at least, you cannot replicate the same name brand formula even if you wanted to. Maybe for a few million bucks yeah. Some ingredients are proprietary and are contracted so even if you think you could get some you can't because there's only so much.

In general, name brand food products also run lower tolerances. They may reject 0.001% wheat contaminated oats or 1/30,000 broken almonds, but generic oat cereal may use whatever oats come through the door and they'll just toss bag of almond rejects into the mix.

Same with manufacturing safety specs. The generic line may spec no metal contaminants but don't have a detector at the end of the production line but a name brand manufacturer might possibly have two.

I have a different understanding of private labeling than you do I think. My understanding is that Kraft has their Mac & Cheese. Cost Co or Wal-mart comes along and says we want to sell your Mac & Cheese. We know it does not cos that much to make and we would like you to make the Mac & Cheese but put our name on it. We promise not to tell anyone it is yours and we promise to move "x" units. We will both make money. If you don't I'll find someone else who will and I'll put it up against your product.

So far as I am aware Cost Co or Wal-Mart do not produce their own stuff under their own label. It's made by someone else and uses the chains name.

aklim · #40 02-17-2010, 11:51 AM

Adopted Mom worked for Sta Rite Pumps. They made them for anyone they wanted but only their brand had brass stuff or if the customer wanted to pay more.

Not sure about human food but so far, I have run into private labeling in the animal feed area and they are sticky about who uses their name when you ask them for a price break and to put their stuff in your bag. Maybe it is just the companies I deal with that are like that.

HuskyMan · #41 02-17-2010, 12:13 PM

the smart ones realize there is something called "brand integrity". if a particular animal food uses higher grade ingredients and justifies it by charging premium $$$$, they are not looking to dilute the brand by allowing wal smart or some other bigger bang for the buck retailer screw up their public reputation.

this is why there is $20/bag dog food and there is $50/bag dog food. both dog food, but at the end of the day, you feed your dog the $20/bag stuff and he might end up with three types of cancer and brain tumors while the other may help to maintain the dog's health.

and.....these represent two separate distinct markets. the $20/bag dog food guys will be more prone to allow Wal smart to "store brand" the food because they don't have near the public reputation issues to worry about. the $50/bag dog food guys are not going to let anyone screw around with their formula.

think Coca Cola. the ingredient list is kept locked in a vault surrounded by guys with big guns. NOBODY gets their mitts on the Coke formula and that's for a reason. there are plenty of "Coke like" products on the market, but there is only ONE Coca Cola.

SwampYankee · #42 02-17-2010, 12:52 PM

Quote:

Originally Posted by aklim

Since you mentioned it, maybe you can explain to me what that means. I don't think any company should be too big to fail. IIRC, the broke up Ma Bel because it was large.

I can not.

Skid Row Joe · #43 02-17-2010, 12:58 PM

Quote:

Originally Posted by davidmash

I have a different understanding of private labeling than you do I think. My understanding is that Kraft has their Mac & Cheese. Cost Co or Wal-mart comes along and says we want to sell your Mac & Cheese. We know it does not cos that much to make and we would like you to make the Mac & Cheese but put our name on it. We promise not to tell anyone it is yours and we promise to move "x" units. We will both make money. If you don't I'll find someone else who will and I'll put it up against your product.

So far as I am aware Cost Co or Wal-Mart do not produce their own stuff under their own label. It's made by someone else and uses the chains name.

Precisely.

Kuan · #44 02-17-2010, 01:11 PM

Quote:

Originally Posted by davidmash

I have a different understanding of private labeling than you do I think. My understanding is that Kraft has their Mac & Cheese. Cost Co or Wal-mart comes along and says we want to sell your Mac & Cheese. We know it does not cos that much to make and we would like you to make the Mac & Cheese but put our name on it. We promise not to tell anyone it is yours and we promise to move "x" units. We will both make money. If you don't I'll find someone else who will and I'll put it up against your product.

So far as I am aware Cost Co or Wal-Mart do not produce their own stuff under their own label. It's made by someone else and uses the chains name.

Somewhat. Kraft Mac and Cheese has a market penetration that Walmart cannot touch. In cases like this, and with premium product, Walmart will hire a food product consulting team and go to independent manufacturing facility which may or may not run the product for Kraft. In fact, they may even use the same production lines, but they cannot use the Kraft cheese or the Kraft macaroni.

I'm sure there are times where the store brand is identical with the name brand, but in most cases these are commodity products where ingredients are plentiful and the market is wide open.

sfloriII · #45 02-17-2010, 02:12 PM

Years ago I worked for People's Drug Store (at $3.15/hour) which was later bought by CVS. While I was there, they sold their own generic alkaline batteries that were actually rebadged Energizers.