Saturday, November 28, 2009

"Branded" Bread is Expensive

Have you ever go to shopping mall to buy those "branded" bread from those well-renovated bakeries. These breads from these bakeries look very attractive and people are often are lured by the design and the name of the bread.

However if you look at the price, normally it will cost about $1.20 to even $2 plus per piece. It is very expensive in my opinion. For those normal neighbourhood bakeries, the bread only costs about $0.60 to $1.20 each. Now I am thinking, are people just go for the "brand" and design of the bread, or the taste and value of the bread?

Let's say bread from a "branded" bakery costs $1.50, and you can get the same type of bread from the normal neighbourhood bakery at the price of $1.00. Assume that one month you buy 30 pieces of bread, "branded" bread will cost you $45, and the normal bread will cost you $30 in total. You can see that you can have a saving of $15 per month or $180 per year if you just buy the normal bread.

So are you going to pay a premium for "branded" bread? As for myself, I will just buy it from the normal neighbourhood bakery as lowering my expenses is part of my cash flow framework.

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