system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How come in-house brands are almost always cheaper than non in-house brands?
gpt
Marketing and reputation... Crest, Tylenol, or Oreos have spent millions in advertising to get you to buy their brand and think they are the best/highest quality/most effective. So the cost of the advertising is built into their costs that go into determining pricing. Also the intangible benefits of their reputation, ie. "well, 4 of 5 dentists recommend it..." will convince a number of consumers to justify paying more because it must be better.

On the flip side, if a store is selling its own brand, it can shop the manufacturing of said good to multiple plants to get the lowest price, and they cut out a middle man so they pay wholesalers/distributors their cut. Also, stores may use their brands as loss-leaders to lure you in the door so they can make their profits elsewhere. Get that generic, store-brand ibuprofen as their cost, and they make $$$ on the prescription you pick up.