What’s the difference between brand-name items and generics?
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This episode of Million Bazillion contains examples of real brand names and actual products, but it is not an advertisement for or endorsement of those products. You know, just so you're aware.

Hey, Ryan. Nice running into you at Million Bazillion World Headquarters. What you doing? Just making copies. Remember that from SNL? Making copies? Uh, not at all. I'm going to go to the store real quick. Do you need anything? Actually, yeah. I noticed the office first aid drawer is out of Band-Aids and Q-tips. Can you pick some up, please? When you say Q-tip, do you mean cotton swab or...

Or the specific brand Q-tip? Uh, whatever. Just regular Q-tips or swabs or whatever. And are any adhesive bandages okay? Or do you need Band-Aids, the most popular brand manufactured by Johnson & Johnson? Uh, whatever. Because you said Band-Aids. You know what I mean. Band-Aids in the general sense. But only one company makes Band-Aids. So how am I supposed to know if you just need an adhesive bandage and don't care who makes it? Or if you need that specific brand?

I'm eating the last popsicle. Can you buy some more? Popsicle is a brand, so do you want any ice pop or does it have to be popsicle? Any cold treat is fine. Oh, whoops!

I spilled my popsicle. Hand me those Kleenex. Okay, so Kleenex, registered trademark of the Kimberly-Clark Corporation. Hand me any tissue. Oh no, my popsicle is melting into the Xerox machine. It's a copy machine. You're no help. I'm going to Google how to fix it. Okay, so you said Google and then you just typed your search into Bing. You know what I mean. Welcome to Million Bazillion. I'm Bridget. And I'm Ryan and we help dollars make more sense.

And I think this Xerox machine. Copy machine. I think this copy machine is a goner. Let's hear today's listener question, which comes to us from Cade. And he wants to know, why do brand name products cost more than non-brand name products? This is a great question. So when we talk about brand name products, we mean something from a well-known company that has put a lot of work into making sure that you know and come to love their product.

And maybe if they do a good job, their brand name becomes the word we all use to describe any version of that thing. Right, right. That's what you were getting at earlier, like how band-aids are a brand name type of adhesive bandage. Yes, exactly. And those differ from non-brand name products, also known as store brand or generics. You might not recognize the label, but the whole point is they cost less money than the brand name option. Okay, let's take a little pause and see if you can think of

things in your home that you call by their brand name. Pause the show if you need to. It's okay. We'll wait. Okay. So anyway, brands are everywhere. Even in our everyday speech, sometimes a brand name becomes so well known, it can actually replace the name of the thing in daily usage like Kleenex or Band-Aids or Jacuzzi. Really? I thought all hot tubs were Jacuzzis. Nope. Jacuzzi is just one brand of hot tubs.

So the question is, why do brand names cost more than other options? Is the higher price a sign that brand name products are actually better when you compare them to generics? Because higher price is supposed to mean higher quality, right? Or is this some sort of massive trick? We're going to get into it right after this.

And now it's time for asking random kids not so random questions. Today's question is: If Million Bazillion made something that you could buy, what would it be? If Million Bazillion made something I could buy, it would be Million Bazillion bumper stickers.

It would be something that would advertise them. So like a water bottle that says Million Bazillion. A Million Bazillion Cactus. Probably a Million Bazillion Bobblehead. A Million Bazillion Board Game. I feel like it should be Stocks.

because this is a podcast about economic stuff, so it makes sense. That was Ashwin in Washington, D.C., PJ in Massachusetts, Ada in Georgia, Sage in New Hampshire, Sebastian in Minnesota, and Arjun in Ohio. This has been Asking Random Kids Not-So-Random Questions.

And we're back. Today on Million Bazillion, we're answering the question, why are brand name products more expensive than non-brand name or store brand products? Now, listeners, one day you're going to be making a lot of shopping decisions and you're going to have to pick between brand names and not so brand names pretty much all of the time. When you buy clothes, when you buy toilet paper, when you buy sunscreen, you're going to have to pick between brand names and not so brand names.

We've headed to our local grocery store, which seems like a good a spot as any to really get a hands-on lesson about brands and what they cost. So let's go inside. Hmm, Bridget, have you ever noticed how many brands have their own song like these famous ones? Yay, Pepto-Bismol! Nausea, heartburn, indigestion. The best is breaking up with soldiers in your country.

Oh, Skimbleshanks loves that one. Excuse me, can you please be quiet? It's bad enough I have to hear those songs over the grocery store PA system every few hours. I don't need you humming them too. Who said that? We're the only ones in this aisle. Oh sure, I'm a generic can of soup so you don't even really see me. It

It's a talking soup can. Right there. The bottom shelf. That's right. Way down here. Where no one even bothers to look. It's me, a store brand can of ham and split pea soup. You can call me Soup Can. Oh, sorry, Soup Can. We didn't see you there. Of course you didn't. My label isn't as flashy and my placement isn't as well situated as those name brand cans. I get it.

I don't have a cute mascot or a catchy jingle. I'm just a plain gray can of soup. But so you know, all that advertising stuff doesn't make soup taste better. The only reason you know those big brands is because companies spend tons of money to play those jingles for you over and over again. Well, do they do that because they love to fill the world with silly little songs that get stuck in our heads? No, because when you're standing in the aisle trying to pick between brands, they're hoping

and you'll remember and recognize their brand name and you'll take it right to the checkout line, even if it means you're paying more.

It depends on how good the jingle is. That's why they do all the advertising they do. But what about me, huh? My creators didn't spend money on frivolous jingles and big fancy advertising campaigns. But I'm here, a delicious pea soup with ham chunks, sitting here on the bottom shelf for $2 less than those guys up on the higher shelves. Well, I don't know that the soup makers would think that the jingle is frivolous.

So branding, like with jingles, helps us know something about a product before we buy it. Think of it this way. Would you rather go see a movie that you've seen trailers for and you and all your friends have been excited about for months?

Or would you rather see a movie based on maybe just the title alone? Which one would you feel better about spending your money on? Well, as a fan of independent and world cinema, I often see films knowing nothing about them, not even the language, and have discovered really interesting cinema that way. Actually, I have a little list here. The Red Balloon, My Neighbor Totoro. Yeah, I've seen your little list before. Look, I don't know movies. I'm souped.

But there are plenty of examples of store brand products like myself whose differences are barely discernible from our brand name counterparts. That means that you can't really tell the difference between the store brand and the name brand item? Like if you didn't have, say, the packaging or something to tell you?

That's right. Check out the medicine aisle three lanes over. You'll find different medicines that have the same active ingredients. And those are the only ones that matter. Only difference is the one with the grocery store's name on the label costs less and the brand name costs more. That's true. But sometimes you kind of can tell the difference, right? And there's nothing wrong with buying something, paying a little bit more for it because you like the taste, for example. Like in the cereal aisle, there's always going to be Cheerios from General Mills and

And then some other suspiciously similar circle-shaped grain cereal called, like, Crunchy O's or something for just a little bit less money. But they don't really taste the same. Like, you can totally tell the difference, you know? Sure. But you shouldn't assume that the name brand one is better. You're not one of those terrible assumers of things, are you? What? No, I thoroughly researched the things that I'm going to buy.

Sometimes there's not much difference between the store brand and a name brand product from cereal to bandages to ice cream.

But there's always a price difference. So why would anyone buy the name brand version? To just throw away money? That's what I'm saying! With people so desperate to save money, I don't get why people spend more on a big brand name over a generic one if there's no difference between the two. Well, I think people like a familiar brand name. We know that they work the way we want them to, so we trust them. Maybe we feel like they say something about us when we buy them.

Maybe we've used the product for years? Like if your parents always bought Tide laundry detergent, you'll probably stick with Tide when it's your turn to do laundry, even though you see cheaper options in the detergent aisle. I'm an arm and hammer man myself. The arm on the logo looks strong like mine. Well, all I can say is if you value the things that come with name brands, then you're gonna pay for it. But if you're willing to take a chance on a can of soup that's a little less flashy, but just as nutritious, I'll be right here waiting for you.

Like I waited for Andy Warhol to paint me. I kept offering, Andy, you know I like soup. I'll model any time. Phone never rang. Whatever. I never got what he was doing anyway. Bridget, this can is clearly miserable, despite his protests to the contrary. I'm not protesting anything. I'm tired of sitting on this shelf. I think we should try to turn this pitiable can of soup into the star he's desperately yearning to be.

I think we're leaving a lot of money on the table here. We should turn this soup into a real honest-to-goodness name brand. How should we even begin to do that, though? We're not marketers. We're not brand consultants. I'm pretty sure there are people who can help us with that, Bridget. We're going to develop a winning marketing plan for this sad and pathetic can of soup when we come back. Welcome back to Million Bazillion. Quick little recap here.

Today we're answering a question about why brand names cost more than non-brand names or store brand items. While scoping out the aisles of our local grocery store, we met a lamentable little store brand can of soup boiling over with resentment about his lack of popularity.

After some brilliant brainstorming on behalf of myself, we've decided to give him a glow-up into a name-brand can of soup. But does this can of soup have the can-do spirit to go from bland to brand? We're about to find out.

Is that a good recap of where we are? Yep, that's about where we are in this episode. But where are we, like, physically right now? Oh, we've brought Soup Can to visit a marketing expert here at Logan & Lerman, the town's fanciest branding agency. You ready, little buddy? As ready as I'll ever be.

Wow, this office is nice. Branding must pay pretty well. Bridget, Ryan, pleasure to make acquaintance. My name is Guy the Guy, and I'm the top branding expert in business. If you're looking to launch or expand your brand, you won't find anyone better than me to help you. Can I get you a Fiji water? A Pellegrino? How about an espresso or a Mountain Dew cold red? I don't know, Ryan. This guy seems a little full of himself.

I think that's exactly what you want in a branding expert. Would you take sales advice from someone who says, um, actually, no, I'm not very good at selling stuff. You probably really shouldn't work with me. Hmm, good point. Very nice to meet you. We're Bridget and Ryan, and this is Soup Can, your real client. Hi, I'm Soup. Your fancy brand speak may convince these two here, but I only care about real results. Of course. You're a guy who likes to get his money's worth. I can support that.

My job is to come up with a story for who you are and what that means about a customer who buys you. People don't want to buy a product. They want to buy an adventure, a mystery, a romance. If you don't have a story to share, I think you're actually leaving a lot of money on the table. That's exactly what I've been saying. The money on the table thing. I said those words exactly. Yeah.

Tell me more. Look, I can tell you're a critical thinker. And maybe you're a little skeptical of my work. Maybe you think brands are bunk to begin with, and I don't blame you. But there's a good reason we have brands in the first place. Let me tell you a little story. Where's that music coming from? Seemingly everywhere and also nowhere.

Once upon a time in Soviet Russia, people realized they were paying a higher price for brand name products than for products that didn't carry an established brand name. Just like here. And they decided to get rid of brand names entirely.

And what happened? Well, a few interesting things. Without brand names, shoppers had a hard time using their past experience to know which products to buy and which not to buy. Like, let's say you're buying maple syrup. One's made well and tastes sweet, while another's manufactured poorly, tastes bitter. Olga, wait. I hated that maple syrup we bought last time. Let's get a different kind this time. Uh, Vlad? We have a slight problem.

I would pay more for the better syrup.

And because consumers couldn't tell the difference between products, the people making the syrup and toothpaste and canned tomatoes, they stopped working so hard to make anything that was any good. Companies basically had a reason to cut corners and make lower quality stuff. By not being able to put bad businesses out of business, it was the customers suffered. And that's why brands are important.

Wow, Guy. You just convinced me that all the methods of product branding in this ruthlessly capitalist American system are, in fact, okay. You are a good salesman. So what are you suggesting we do for me? What's my brand? I'm seeing a vision in my head right now. You're a hearty soup for people who need filling up, like athletes.

Yeah. See, a liquid energy drink can only get them so far. What they need is a chunky soup that they can drink straight from the can. I don't hate the sound of that. I'm not sure about drinking lukewarm ham chunks during basketball practice. Shh! They're making magic! Oh, this is gonna be good. We'll want a big advertising budget for this. We'll get a spokesperson to join your team. Oh, so that could be a celebrity? Like a famous actor? Oh,

Oh, yeah. Let me look at my big list of approachable celebrity spokespeople here. There's Mindy Kaling.

Let's see who else we got here. Mindy Kaling? Or maybe an athlete? Someone who'll get paid to say how great they think soup can soup is. Gets paid to eat soup, you say? Say, guy, I'm just going to leave my card over here, and if you're looking for any podcasters who might want to endorse something, just give us a call. Ryan, we don't endorse products for money. Yeah, I'm aware. I've seen my bank account. Next, we're going to need a commercial and a jingle. How about a little something like this?

A sea of white sneakers squeaking across a basketball court opens to reveal the can of soup. LeBron James, or I don't know, a more affordable alternative, grabs the can. When it's time to win, choose Soup Can Soup, the soup that helps you dunk. Do you love it?

One thing, though. I'd be a little worried about claiming our soup helps people dunk basketballs better. Like, aren't there rules against that? Well, sure. We can't just say anything. There are laws against that. That's why we'll add this little disclaimer. This soup will not help you dunk. This soup will not help you dunk.

Next, we're gonna need to sign Soup Can up for a makeover. He needs a logo that'll really push the sports message, you know? What I'm looking at now is really giving off store brand vibes. I suppose I am due for a little spruce up, especially if I'm gonna be hanging out with famous basketball players. Maybe I should wear a little jersey. Exactly. And what about a new name? Soup Can is kinda, well, generic. I'm thinking we go with something that really screams sports. Ooh.

What about halftime soup? But sports don't happen during halftime. No, but like you drink it during halftime. I forget it. I'm not helping. I'm not the creative type. What about courtside soup?

Oh, yeah, and then you're also appealing to the spectators, too. I like it. If this all goes well, ten years from now, kids will be asking their moms for a bowl of Quartzside. They won't even know how to spell soup. Hmm, I don't know. And while we're at it, we also need to change the location. For you. We need to be a little more strategic when it comes to product placement in stores. Placement? At the grocery store? What's he talking about, Bridget? Okay, so say you're walking down the peanut butter aisle.

Which are you more likely to buy? The jar that's way too high to reach? The jar you have to bend down to get? Ow, my back!

Or the jar that's right at your eye level in front of you. Hmm. In theory, the jar right in front of me. However, I have a minor peanut allergy, therefore avoid all legumes of the groundnut varietal. But yes, I get your example. Well, the point is, very often the big brands have paid the grocery store for that great spot on the shelf. Remember when we found Soup Can? He was way at the bottom shelf. Not great placement, but cost effective.

So yeah, we'll get you the new name, new jingle, primo spot on the shelf, and it's all vibes from there. We'll know if it's working when we do our tests, see how consumers are reacting. Oh, I know, let's build you a Spotify playlist. Ooh, can I pick the music? I love me some new Jack Swing. Yeah, that's the stuff.

It'll be great. People will really feel like if they want to show they're a serious athlete who needs to refuel to really play their best game, they need to put you in their cart and take you home. Yeah, take me home. No matter the cost. No matter the cost. Hmm. Speaking of all this, how much is all this going to cost? Oh, of course. Here's my bill. Let me see here. Whoop. Whoop.

Okay, uh, that is a lot of money. I'm a can of soup. I don't even have a wallet. How am I supposed to pay for this? Oh, don't worry. Look, we're gonna bake these costs into every can of soup, so your price on the shelf might go up a little. By how much? You know, I

Couple cents, and then additional three dollars. Three dollars and four cents, precisely. That's double what I cost now. I wouldn't be cheaper than all the other brand name soups. But think of how much cooler you'll be. You will be worth it for once. Well, I think I'm worth it now.

I've been a store brand soup can all my life. Mothers buy me for their kids having a sick day. College kids out on their own for the first time, saving their pennies, not knowing how to cook anything. Buy me. Little old ladies on a fixed income put me in their car next to their prune juice and had me for lunch. I've always been an affordable option for cost-conscious shoppers.

That's not a life I'm ready to give up, okay? Of course. It's your choice. You will be leaving money on the table. Money on the table. That's what I was going to say. I was thinking that too. We get it, Soup Can. Come on. Let's get you back to the grocery store. Yeah, let's go, Bridget and Ryan. Oh, do you validate parking? Yeah, check with the front desk. Thanks. Thanks.

Hi, my name is Lola and I'm nine years old. I own DJ and Friends. DJ and Friends makes one-of-a-kind and unique stuffed animals for everyone to enjoy. Some of them just look like shapes. Some of them look like little bunnies. Some of them are orange, turquoise, rainbow, hot pink, hot pink with spikes.

I started thinking about starting my stuffy business after I had found a stuffed animal in my grandparents' house that my mom had made when she was little. I've been in business for about half a year. I've made about 200 stuffies so far. So first we cut the fabric, then we put the eyeballs in, then we use a sewing machine to sew them,

but we leave a little hole so that we can stuff them and then we hand sew the hole. My advice for other kids to start businesses is do your best at whatever you like most.

Welcome back to Million Bazillion. We're wrapping up our episode on brands and returning this non-brand soup can to the soup aisle. Did you have fun today? Yeah, I mean, I really thought for a minute it might work out, but ultimately, Soup Can decided he'd rather be a store brand staple than a brand name megastar. Once again, our crazy scheme was a swing and a miss. But we did learn a lot, which is the whole point of the show. Learned I'm still broke. Anyway, what did we learn?

Today, we learned that brand name versions of the things we buy can cost more for many reasons. But one of those reasons can be because the folks who make those brand name goods spend more money getting you to know and trust their product than their store brand competitors. That includes spending on advertising, spokesmen, catchy jingles. That cost is passed on to you, the consumer.

Generics and store brands can be the same quality or pretty close to their brand name counterparts, but they're made for customers who want to pay less money. Now, everyone has their personal brand preference, and that's totally fine. Use the shampoo that's right for you.

Huh, that could be a jingle. I remember that. Okay. But if you have savings in mind, you might want to consider thinking outside the brand box and trying out a generic sometimes. You may save money without noticing any difference. It's a decision you have to make yourself over and over again almost every single time you buy something. Wow, that's a lot of pressure.

Okay, Soup Can, here you go. Back to the bottom shelf. Out of sight, out of mind. Where I guess I belong. Oh, don't get down on yourself, Soupy. We made a Spotify playlist for you. It's not branded or anything. It's just for fun. Wow, and it's my favorite type of music. Huh, is that new Jack Swing I hear coming from the soup aisle? Let me take a look.

Hmm, this gray can of soup looks hearty, delicious, and can't beat the price. Let me just reach down and grab it. And in my cart you go. Soup can, you did it! I can't believe I did it. I'm sold! Bye, Bridget and Ryan. Thanks for believing in me!

You're a champion in our book, pal. Um, hey. Who said that? It's me way down here. Generic pudding. Any chance you want to do an episode about me? Oh boy.

That's it for this episode of Million Bazillion. If you're not done learning about brand names and store brands, we've got more for you at our website, marketplace.org slash million. While you're there, send us the questions you want us to answer next. Special thanks to Franklin Shaddy at UCLA for helping us in answering this question. Million Bazillion is brought to you by Marketplace from American Public Media.

This episode was written and hosted by me, Ryan Perez, and Bridget Bodner. And we had some extra help voicing this episode from Courtney Bergseeker, Chris Julin, Jay Siebold, and Becca Weinman. Jasmine Romero is our editor. Courtney Bergseeker is our producer. Marissa Cabrera is our senior producer. This episode was sound designed by Chris Julin and Becca Weinman and mixed by Becca Weinman. Our theme music?

was created by Wonderly. Bridget Bodner is the director of podcasts at Marketplace. Francesca Levy is the executive director of digital. Neil Scarborough is the VP and general manager. Million Bazillion is funded in part by the Cy Sims Foundation, partnering with organizations and people working for a better and more just future since 1985.

And special thanks to the Ranzetta Family Charitable Fund and NextGen Personal Finance for providing the startup funding for this podcast and continuing to support Marketplace in our work to make a younger audience smarter about the economy. If Million Bazillion is helping your family have important conversations about money, consider making a one-time donation today at marketplace.org slash givemillion. And thanks for your support. Is there a teen in your life who needs a little extra help learning how to manage their finances?

Financially Inclined from Marketplace is a podcast you can trust to help Gen Z get serious about money. I'm the host, Janelia Espinal, and each week I talk to experts about essential and practical personal finance topics, like choosing a college that you can actually afford, finding internship opportunities, and how to start a business while you're still young. Let's make sure the next generation gets these financial lessons sooner than we did.

Listen to Financially Inclined wherever you get your podcasts.