Are you so brand loyal that you’ll only use one company’s version of a specific product?
If so, you could be wasting a ton of money.
I’ll admit it. I’m brand loyal when it comes to certain purchases.
However, I could not care less about which brand I buy for other products.
So when should you and when shouldn’t you be brand loyal?
Why Companies Love Brand Loyal Customers
Companies work extremely hard to gain brand loyalty.
In fact, companies spend crazy amounts of money advertising their products so you’ll remain loyal to their brand or convert your loyalty to their brand.
Brands love the die-hard consumers that will never use anything other than their preferred brand because these customers are gold mines.
How Brand Loyalty Costs You Money
Brand loyalty results in missing out on deals on similar products that fulfill the same purpose. For instance, if you’re brand loyal when it comes to your Heinz ketchup, you could miss out on a buy one get one free deal on Hunt’s ketchup.
While the idea of using Hunt’s ketchup may be revolting to some, others don’t care which ketchup they use. The key is finding out which purchases matter to you and which purchases you can compromise on to save.
Of course, the above is just a small example. Brand loyalty could cost you a huge amount of money when it comes to buying a car.
If you will only buy a Honda despite the fact that Toyota is having a huge blowout sale on similar models, you could easily lose thousands of dollars on one purchase.
In these instances, you need to consider all options available regardless of your brand preference.
You may be surprised to find out the cheaper Toyota in the above example would meet your needs better for a lower price. Without examining all of your options, you could miss out on thousands of dollars in savings.
Some Generic Brand Products Are Made By Big Brands
Generic products often have a bad reputation from the occasional bad generic product that someone tried once and told everyone about.
However, some generic products are the exact same products as brand name products. In fact, some are made in the very same factory with different labels.
Give generic brands a shot to see if you like them or not. You may surprise yourself.
If you do find a particular generic that’s awful, don’t let one bad generic experience ruin generics for everything. Instead, avoid that particular generic item while giving others a shot.
If generics aren’t for you, you could consider a cheaper brand name. If you find you don’t like the cheaper option, either, maybe being brand loyal for that particular product is the right decision for you and your family.
Some Companies Take Advantage of Your Brand Loyalty
While you’d hope that brands would treat brand loyal customers better than people that constantly switch brands, that isn’t always the case. In fact, some companies make brand loyal customers pay higher prices than new customers.
For example, cable and internet providers commonly offer new customers promotional rates to win their business. Once the promotion is up, your bill will increase drastically.
While you could qualify for a lower promotional rate, cable and internet companies don’t automatically apply these lower rates to keep your business. Instead, they make you call and negotiate to get a new promotion.
Be careful with purchases and services you’re brand loyal with. If you see the price you increasing, ask to see if you qualify for a cheaper price. If not, consider shopping for other providers to see if your brand loyalty is costing you money.
When It Makes Sense To Be Brand Loyal
Of course, money isn’t the only factor to consider when choosing whether to be brand loyal or not. There are certain cases when brand loyalty is the right move.
When choosing a brand over a generic or a different brand could affect your health, as it easily could with medication, it makes sense to spend the money and be brand loyal.
Talk to your doctor to see when sticking with a particular brand is necessary or when you can opt for a generic medication. Often, generic medications work just fine.
However, you could end up in a world of hurt if you’re allergic to non-active ingredients in a generic medication.
Another case when it makes sense to be brand loyal is when the brand makes it worth your while to stay brand loyal. Some brands will offer every 5th or 10th item free and that extra effort will make a brand worth more to you.
Before you decide a free item is worth brand loyalty, make sure the pricing isn’t higher to offset that free item. If it is, you might find a better deal at another brand.
Finally, there is nothing wrong with being brand loyal if you truly enjoy a particular brand more than other brands.
Spending more money to buy something you enjoy more is a perfectly acceptable option if you have the money to make that choice.
When You Should Avoid Being Brand Loyal
Sadly, being brand loyal often is not the best choice for your finances. When you don’t have a particular preference, it makes sense to go for the cheaper brands in most cases.
Why waste money on a more expensive brand you don’t care about? Save money on the brands you don’t care about to spend on the brands you do care about.
What brands are you loyal to? What items do not care about and buy the cheapest brand available? Do you buy generic brands? I’d love to hear your thoughts in the comments below.