brand. To make sure it succeeded, Costco had to be confident Kirkland Signature products were built around two things: outstanding quality and affordable prices.
Costco’ s philosophy for affordable pricing didn’ t require much strategising: an extremely low mark-up maximum on all merchandise has been company policy since its founding in 1983. Combined with the much lower production cost of private-label items, Costco could offer much lower prices than brand-name competitors.
By developing their own products, retailers can directly supervise various aspects of the manufacturing process. The money saved by spotting expensive inefficiencies and bypassing the brandname intermediaries means goods can be produced for a much lower cost. This can result in lower sales prices, in turn pressuring brand-name companies to lower theirs to stay competitive.
Seeing green
To push back against the view that housebrand products could be held to lower standards than national brands, Costco buyers become experts in their respective categories. Every flavour profile, measurement, raw material, packaging graphic and distribution plan is thoroughly researched and reviewed so that Kirkland Signature products offer an exceptional quality and pricing combination. If there’ s any reason to believe it can’ t be done, Costco won’ t do it.
This is why every Kirkland Signature item must be personally approved by Ron Vachris. The final authorisation meetings for new products, in fact, are referred to as“ green ink” meetings in honour of Jim’ s famous preference for signing his name with green pens.
“ The legend truly had a green pen at all times,” Ron says.“ That’ s just what he used. He still has one. I’ ll still get a note on my desk in green ink that says,‘ Ron, thought you’ d like to see this.’ And [ former CEO ] Craig [ Jelinek ], following Jim, went through all the green-ink processes Jim did, but he used whatever pen he had in his hand. But nothing has changed with the process.”
Ron says Costco’ s mission – to continually provide members with quality goods and services at the lowest possible prices – and code of ethics( obey the law, take care of members and employees, and respect suppliers) are the two biggest factors in the development of Kirkland Signature items.
This standard is closely upheld by Costco buyers and teams across the globe.
“ Kirkland Signature is synonymous with our culture and core values,” Ron says.“ If you can check those boxes, you are onto something.”
Commitment to quality
Many factors are also considered as new products come to fruition.“ There are a lot of variables,” Ron explains.“ Kirkland Signature items come to be in many different ways. The most common is from our buyers, as they know the trends, brands and pricing the best. New Kirkland Signature ideas also come from our operations teams in the warehouses. Our operators are the eyes and ears for our members and do a great job communicating what’ s happening in the field. We all look for the opportunity to provide an item with the quality and value we want to represent Kirkland Signature.”
And there’ s no resting when it comes to improvement, Ron adds:“ We want continuous innovation of making items better and finding a way to bring more value to the member.”
Costco’ s home may no longer be in Kirkland, but all of that detail-focused, heavily researched and dedicated effort is still the company’ s signature.
“ That’ s my biggest responsibility that Jim and Craig have handed over:‘ We’ ve built this brand; you’ re now the guardian of the quality,’” Ron says.“ Our whole global team shares that responsibility. I see it as the ultimate responsibility that the brand is being managed the right way.”
COSTCO CONNECTION MAR / APR 2026 | 17