Chapter 4 Topics

4-Q: Different Brand Names, Same Product

Hey wait a minute, aren’t these all the same guy?

Sometimes a manufacturer sells the same model under different brand names, with some being priced higher than others for the near-identical product. This marketing approach is called “Private Labelling.”

Every so often a “hot tub expo” rolls into town, claiming there’s lots of different brands to choose from (4-I-c: Traveling Circuses). They imply that there are competing manufacturers, but the truth is that all the hot tubs are being sold by the same company, just with different labels to give people a [false] perception of variety and a sense of choice.

Sometimes competing hot tub stores are actually selling pretty much the same product under different brand names.  For instance, two manufacturers I worked with actually make tubs for several different spa companies.  Some of these brand names were far more popular than others, depending on how successfully they were promoted.

Some manufacturers have a “default” brand name, but if I paid them to do so, I could have them stamp and label mine as “Hot Tubs Galore Spas”, and I could market them as my own brand in spite of it being no different.  If I marketed them well, my brand name might end up being more popular and sell for more money than the models being sold under the default factory name. Isn’t that a hoot?