A product equivalent is an item that is comparable to another product, accomplishes something another product does.
Today’s blog is by Margaret Stewart, Director of HR and Administration at SafeSourcing.
A product equivalent is an item that is comparable to another product, accomplishes something another product does, or functions the same way another product does. For nearly every product out there, there is likely a product equivalent available. There are always exceptions to this, as in the case of patented products or one of a kind service.
Whether or not you realize it, you are likely more familiar with product equivalents than you might suspect. For instance when you shop for groceries, you may have noticed similar items on the shelves. You may have even noticed some items look just like the original, but with a different name, different packaging, and a different price. These are product equivalents and , while they are not likely the exact same, you may find it serves its purpose well enough.
Often times these product equivalents are private label. Private label is when a product is made by a manufacturer who then applies a companies specific brand and formula to the product instead of using the larger name brand. For some items, like cleaners or medicine, you can see exactly what is in the product and decide if the brand name or the equivalent better serves your need. For other items, like foods, it is much more subjective on whether or not it tastes good. I for one prefer brand name items of some foods, but prefer the private label items of other foods.
No matter which product you prefer, a hearty market will often have several choices which allows for more competition and more growth opportunity, not only for retailers, but for suppliers as well. All of that is good news for the consumer.
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