Costco CFO Says Kirkland Brand Saves Shoppers 20% a Year

If you've ever wandered the aisles of Costco before, you've probably noticed the Kirkland name on a host of products. Kirkland is Costco's signature brand. You'll find it on baked goods, milk, apparel, cleaning products, and paper products, to name just a few examples.

As a Costco shopper, you may have previously shied away from Kirkland products due to a lack of familiarity with the brand. But avoiding Kirkland products could be a big personal finance mistake.

You can save money without skimping on quality

It's understandable to be loyal to a given brand you know and love. Let's say you have picky eaters at home. Why buy a new brand of a grocery staple and run the risk of it not going over well?

But one thing you should know is that Kirkland products are known for being high in quality, whether they're of the food or household variety. And you might also end up with a smaller credit card tab by opting for Kirkland products instead of their name-brand counterparts.

During Costco's most recent earnings call, Richard Galanti, the company's CFO, said, "Historically, the view was {Kirkland} has to be at least as good, if not better, quality than the leading national brand and at least a 20% savings as compared to what we sell the national brand for. And that -- those metrics continue in that regard."

You might save a bundle

Costco doesn't spend money marketing Kirkland products the same way big brands pay to advertise their offerings. So Costco is often able to offer its signature products at a much lower price point. The result? Big savings for you.

Case in point: Kleenex tissues on Costco.com will cost you $0.02 per sheet. You can get Kirkland tissues for $0.01 per sheet. And when you're talking about something like tissues, why not save money?

Now one thing you will need to consider when buying Kirkland food products is whether a difference in taste will be a problem in your household. If you have kids who are picky, then you'll want to tread lightly.

You might save money by bringing home Kirkland granola bars versus the brands your kids normally eat. But if they reject your Kirkland supply, you won't be doing yourself any favors.

If Kirkland is a fail, Costco's return policy to the rescue

That said, if it doesn't work out, Costco has an exceptional return policy. So if you bring home a Kirkland product your family really doesn't like, you may be able to get your money back if you return the item largely untouched.

Another thing you may want to do is try to bring your kids to Costco and take advantage when Kirkland foods are being sampled. That way, you'll see for yourself whether a given item is an acceptable substitute or not.

All told, there's plenty of reason to give Kirkland products a try, whether it's cleaning supplies, paper goods, or something else. So if you've historically passed them by in the course of your shopping, give them a closer look the next time you're at Costco.