system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: how is it that generic (store brands) are able to produce an entire store worth of items for significantly cheaper than individual name brands?
gpt
They aren't making it cheaper, they're selling it cheaper.  The store can do this because there is no middle man taking their cut and requiring profit above manufacture (more profit per sale for the retailer). 

Example: Product "A" is made at a factory. The cost is $0.05 per unit. The company who markets Product "A" then sells this item to the retailer for $1.00 per unit. Then the retailer in turn sells it for $1.79. 

Product "B" is made at the same factory. The cost is $0.10 per unit. This item goes straight to the retailer and is sold for $1.25 per unit. 

Product "A" nets the retailer $0.79 margin. 
Product "B" nets the retailer $1.15 margin. 

Additionally, they don't have to advertise and can ride off the success of the name brands, so the margin comes with a higher profit, as the majority of their overhead is storage space and carrying costs.