Is Brand Loyalty Wrecking Your Financial Surplus

Is Brand Loyalty Wrecking Your Financial Surplus

By

Marsha Walker Eastwood, B.S.Ed., MSHSV

Are you a die-hard brand loyalist? Are you one of those consumers that would never ever try an off brand?

According to Wikipedia, “Brand loyalty is defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor's actions or changes in the environment.”  Personal financial surplus is defined as the excess cash remaining in a budget that allows a person to save, invest, and build personal wealth. Excess cash accumulates when there are sharp decreases in spending over an extended period.

As simplistic as these terms sound, creating a financial surplus is anything but. One must develop a spending mindset that is significantly lower than the budgetary allowance. This mindset determines how successful you will be in reaching your goal. All the goods and services you use daily are often tied to some form of brand loyalty, no matter the cost. However, what exactly is the brand?

Brands are unique signatures that include stores and products marketed to a variety of consumer types. Sometimes brands are products bearing store labels such as Sam’s Club and Costco or Big Box Stores such as Walmart and Target, Home Depot and Lowe’s, Menard’s, Aldi, and Trader Joe’s. There is also the small but growing chain of Save-A-Lot stores. Finally come the dollar stores, which on the product side of things truly include soup to nuts. Clothing, food, baby items and automotive parts can be found at any and/or all the above-mentioned stores, but who shops where and for what, and where is the most cost-saving place to shop.

In order to answer the last question, consumers need to do due diligence. The first thing is to determine how much income bi-weekly or monthly is available for basic needs, minus 10%. Keep the 10% in an unattractive one-way container in coins. Purchase rolls of coins, unwrap them and deposit them into the container. Next, male make several lists. The best way to do that is to use a spiral type of telephone book. The alphabetized tabs keep it simple. You can make entries for everything you use on a regular basis, medicinal needs, automotive needs, craft, and home projects.

Now you are ready to comp-shop to compare prices and availability. Product placement is just as important as price points. Cosmetics and personal care products are prime examples. The least expensive toothpastes are on the lower shelves and the more expensive trendy toothcare and maintenance products are on higher shelves. Big pharma GlaxoSmithKline is the maker of Aim, just plain old toothpaste which retails for less than one dollar in most major markets. The average price of a similar tube of toothpaste is four dollars. Those saved three dollars can be used to pay for additional personal care products.

Female consumers overlook numerous cost-saving products. Sometimes it is the brand within the brand that makes the difference in price. This is the case with mascaras. With price points ranging from 6.00 to 70.00, the difference for most women is bragging rights. If you love L’Oréal but hate the price, there is always the more reasonably priced Maybelline collection. Of course, Maybelline is owned by L’Oréal, so the same quality standards are in place and bragging rights belong to the consumer who did her research. Vanity often comes at a high price and several quality cost-effective products can be found at area hair stores. It is wonderful to look well made up but less really can be more when it comes to price. The less makeup the more money that goes towards that financial surplus.

Bath and body products are on everyone’s list, and this is where things get a little more interesting. These are items that should always be purchased from mainstream outlets and not dollar stores. That doesn’t mean you have to break the bank, but on many occasions bath products made for men, except for fragrance work for women as well. The solution of course is a fragrance-free product or a product for sensitive skin. There is definite price discrimination on female products, also known as the “pink tax,” and the unsuspecting female consumer has no idea that it is in place. Marketing companies count on the fact that women are drawn to soft colors in products and packaging. A pink razor doesn’t shave any better than a blue or a green one, but the pricing is significantly different. Deodorant brands are all made by the same companies; however, women’s deodorant is higher in price than that made for men.

Of course, there are some products that you get what you pay for and one of those is laundry detergent. There is nothing worse than using a product that is ineffective and time-consuming. Doing laundry is a chore, and not one that should be prolonged. Sometimes consumers victimize themselves by using the eyeball measure or the little, not maybe just a skosh more method which wastes product. In 2018 Consumer Reports listed the worst detergents and most came in very large bottles for very little money. The test results were the same as if the test clothes were washed in water. The average cost of these detergents ranged from five cents a load to twenty-five cents a load, but the clothes were still dirty at the end of the cycle and needed to be washed. If you pay a water bill this was literally like pouring money down the drain, and counter-productive to reducing the financial expenditure.

During your quest to save money, you may consider shopping for certain items in strange places. Imagine going to Menard’s to buy a screwdriver and as soon as you enter the store you notice canned veggies priced at .50 cents a can. If they are in your address book here is an opportunity to make an entry. As you reach for that screwdriver, you notice a large package of men’s work socks, priced ten pair for 11.99.  You notice they are a Wrangler brand instead of Hanes or Dickies. Here is a prime opportunity to purchase something and divide it for immediate use and future gift-giving. As you leave the store and walk towards your vehicle, start to make mental notes – or better yet, keep a pocket journal rather than trusting entirely to memory.

Automotive repairs can be costly, and routine maintenance can fend off future problems. Windshield washer fluid is an absolute necessity, just as much as remembering to make sure the reservoir is filled. Another absolute necessity is routine oil changes that should also include checks on belts, hoses, brakes, and alternator. There are highly rated nationwide chains that do not advertise and  have discount coupons online and the cost is around $15.00. This can amount to a $5 to $10 savings.

When it comes to clothing, everything has a tag, and fortunately the great majority of us don’t wear the tags. Resale shops such as Savers, which is a for profit division of Easter Seals, have great bargains on kids’ clothes, winter sweaters and bedding. Mondays are “50% off everything” days. If you only wear designer clothes (every piece of clothing was designed by someone….you just don’t recognize the name), then Marshall’s is the store for you. In addition to their lower prices, they also have a year-round layaway.

A word of caution is warranted regarding layaway programs. Many companies such as Sears and Rose’s are now offering in-home layaway for furniture, appliances, and tools. A word to the wise - most of these programs operate similarly to national rent to own stores. Sears’ high-end merchandise locks you into a very long-term arrangement and the added fees are not worth it.

Creating a financial surplus is a thought-provoking, ongoing learning process centered on how you use your money. It requires a wealth building mindset and determination. For some people wealth is that temporary windfall of a tax refund that is managed with a poverty mindset of spend, spend, spend, spend in the here and now. A wealth mindset is one that respects money and plans to make it work for them in the future. Brand loyalty can create savings in small ways, but the overall impact on a budget can derail the goal of creating that surplus.

©Marsha Walker Eastwood

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