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Don’t Confuse Brand Names with Quality

Quality professionals can help retailers learn how to use high-wage U.S. labor effectively

William A. Levinson
Fri, 01/13/2012 - 13:20
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I recently returned a pair of $28 (suggested retail price) Chinese-made gloves I bought for $7.97 the day after Christmas, which is when I do all my Christmas shopping. The reason I returned the gloves was because a seam had begun to come apart less than three weeks after I bought them. This underscores the current retail practice of importing cheap, low-quality goods from offshore sources, and then attaching brand names or designer labels along with a hefty markup.

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Quality and supply-chain professionals should therefore share some basic quality and supply-chain principles with the public to help people on tight budgets (or even those with plenty of money to spend) get genuine value for their money. First, an upscale brand name or even a fancy designer label does not equate to quality. If it’s made in China or some other low-wage country, the same item might easily be found in Walmart or Sam’s Club without the designer label, and with a price that more or less reflects the item’s actual value.

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Comments

Submitted by kkbari on Tue, 01/17/2012 - 10:36

Grocery pricing

Although I have no issue with your premise, your assertion about pricing is not universally correct.  Margins vary by product and are determined a variety of factors to hit an overall margin target.  In grocery retail, discounts are generated sometimes by the grocer to generate foot traffic, but often by the manufacturer itself and supported by the grocer.  For products that are not EDLP (Everyday Low Price), the manufacturer will offer a discount to the grocer periodically (pulsing) to purchase more product and in turn incent the grocer to turn that product around quickly (inventory space in a grocery store is low).  The grocery store uses that incentive by the manufacturer to entice customers.  They might make no margin on that sale (or in some cases lose money), but they will make up for it on other purchases that you make in your basket.

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Submitted by Lorena Toro (not verified) on Mon, 05/21/2018 - 14:32

And this is another reason

And this is another reason why I don't believe in Black Fridays. 

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