Big-name companies spend millions of dollars each year to promote their brands. If they’ve done their job, you instantly picture their products when you hear or see their brand name. Products like Coca-Cola, Xerox, and Apple don’t need any explanation. With a single glimpse of the corporate logo, you know exactly what product is being sold. In some cases, this brand truly means that you’re receiving an exceptional value for your money. At other times, you’re spending more than you should be based on advertising hype.

With certain products, brand is extremely important. For the most part, people know that they can rely on certain automotive brands like Toyota or Honda for about twice as long as other car brands. In addition to enjoying your new ride for as long as possible, you’ll recover more of your initial investment when you decide to sell or trade in your car. In the meantime, a reliable car often means lower maintenance costs.

With many other consumer items, brand names may only mean higher prices, especially when it comes to clothing. If you purchase a cotton T-shirt from a trendy boutique, you may pay $20 or more. However, a discount store may sell a T-shirt without a designer label that will last just as long for $10 or less. Unless you make it a habit of selling your items at a consignment store after just one or two wearings, the additional expense offers no other value other than letting everyone else know your shopping preferences.