Why are store brands cheaper then name brands?!

The Kroger Company, for example, (owner of many grocery stores such as Ralphs, Kroger, Smith's, etc) makes its profits on everything they sell. Their store brand of products is not the only or even primary source of revenue for the company. That's one reason it can be sold for less. They do not have to pay for advertising just for that line of products, either, which also cuts costs.

When comparing quality of name brands and store brands, please keep in mind that many stores do now have TWO store brands. One is their premium line and one is an economy line. The products on the premium store brand line do cost more than the economy line, but less than the name brands. The quality of the premium line is equal to the quality of the name brands. The economy line is of lesser quality.

When you buy a product, the quality of that product goes into the cost of the product. Name brands woult like you to believe that the quality of the product you're buying from them is better because they put their name on it. Much of the time this is true, the quality is better on the name brand product than the equivalent store brand. However when it comes to fashion, often you're just paying for the name to be on the product because the name is famous but you knew that already.

Sometimes you are just paying for the brand. If a brand is popular more people will pay a little extra for it.

Sometimes the store brands are made from cheaper ingredients. This is not always the case. There are some premium store brands.

For example, there is a store brand of Italian dressing that I prefer the taste of compared to the brand name stuff but I got store brand laundry detergent once and it was horrible!

Some store brands can be good enough to buy & some are inferior. Name brands generally taste better but this is not always true. Keeping costs of advertising down helps keep price down & Supermarkets can afford to do it cheaper as well because they can buy in more bulk. They often do a deal with name brands to produce items for them, which aren't much different.

I suspect they are cheaper because their marketing is included in the store brand. Name brand products have separate marketing campaigns directly targeting a product, which means it could cost more.