The truth about overpriced brands. How I got into factory-direct buying. About 2
By Afolabi Oyerokun · November 13, 2026 · Curated by George's Blog
The truth about overpriced brands. How I got into factory-direct buying.
About 24 years ago I was visiting a plasma TV factory in China. A friend was walking with me.
We passed the loading dock, and something stopped me.
Identical TVs were being packed into three different branded boxes.
One went into a box with a famous brand name.
One went into a box with a rival's name.
One went into a box with a third household name.
Same TV. Different logo. Different packaging.
My friend was shocked. These were big, popular, world-famous brands.
So I asked our factory tour guide, "Why do I see three popular, unrelated brands here?"
He smiled and said, calmly, "Yes, we make all these brands here. The products are the same, but the logo and packaging are different."
That moment started my journey into private label.
In the years since, I kept seeing the same pattern in building materials. Many large brands don't run their own factories. They put their logo and packaging on products made in factories like that one.
Then came a question I couldn't shake: if the product is the same, why is the price so different?
On one flooring job I priced for a contractor:
Factory price: about 75 cents a square foot.
Landed cost after freight and duties: about $1.75.
Distributor quote for a comparable floor: about $3.
That saved him about $1.25 a square foot. On a 100,000 square foot job, that's about $125,000 in savings!
That was one job, and results vary by product and volume.
I get it, some of the gap pays for real things, like warehousing, credit, and service. But in this case, a lot of it was layers: reps, dealers, and distributors.
That's why I'm always curious about what's under the price.
TODAY'S SMART TIP 💡
What's the one product you always buy from a popular brand, and would like to see the factory-direct price for?
👉 Comment the material name below (doors, flooring, cabinets, tile, lighting, anything). I'll help you check an estimated factory-direct price and see how much you could be saving, free