M-Budget, Prix Garantie & Co. – That's what the cheap brands are all about

The cheap brands the retailers are an integral part of the range; now there are even pans and textiles in these product lines. The astonishing thing: For M-Budget or Prix Garantie products, you sometimes benefit from price discounts of around 50 percent.

But how can retailers offer products at such low prices? On the one hand, this is due to uniform designs, larger units and lower marketing costs. But lower manufacturing costs are also crucial.

Here are some examples:

• The low prices are justified by different origins of the Raw materials. For example, cheaper cocoa from alternative regions is used for chocolate or mineral water from sources with fewer mineral salts.

• There are also differences in the Processing or recipe of Products. Chopped nuts instead of whole nuts in chocolate bars, less fruit in yoghurts or cheese that has matured for less time.

• Also with larger packaging as well as the packaging design, costs can be saved.

• With vegetables, customers will find a colorful mixture with very different sizes.

• The bottom of the M-Budget pan, for example, is thinner than conventional products.

Basically: With Prix Garantie and M-Budget, the cheapest raw materials available on the market are used – basically the strategy of discounters. This sometimes leads to fluctuating quality and justifies higher prices for conventional products where the quality remains constant.

Caution is advised with meat, because at Prix Garantie and Co. this often comes from abroad, where the animal welfare conditions often leave a lot to be desired. Sustainable products are also generally less found in cheap lines.

The main thing is that customers are in the store

With these low-priced products, retailers are primarily concerned with the low price guarantee. This means that the quality and thus also the production is not necessarily inferior for every product than for the more expensive version; Often, identical products are even packaged differently.

The price differences are often no greater than the actual cost differences – Migros and Coop also forego margins to attract customers to the store to lure in the hope that they will buy other products as well. Because the competitive pressure in the retail trade is huge.

Already in the mid-twenties but still not really reached adult life? No need to panic! “Grow Up” answers everything you need to know by the age of 30 at the latest. Be it questions about your career, dealing with money or the authorities: Hotel Mama was yesterday. Send your question to: grow.up@20minuten.ch

As a member you become part of the 20-minute community and benefit daily from great benefits and exclusive competitions!