As one of America’s most well-known bulk retailer, Costco offers a variety of products that earns it a loyal customer base. Members of Costco rave about the quality and cost efficiency of their products. The company boasts of a variety of claims that they assert sets them apart from other retailers. However, there’s always the talk of whether these claims stack up. What claims has Costco made, and how do they hold up?
One of the biggest claims made by Costco is that it’s less expensive than other stores. On this claim, I think Costco generally delivers. Costco has reasonably priced goods and a considerable selection of quality products. The retailer’s quality to cost ratio is unmatched. Almost every product category available at Costco includes affordable products that provide value to customers. For example, a large pack of toilet paper costs an average of 14 dollars, which can last several months for many households. Costco’s commitment to less expensive goods is relatively consistent and robust, and many customers stand by this claim.
Another frequent claim made by Costco is that it has great customer service. A notable example of this is its return policy. In comparison to competitors like Walmart, Costco’s return policy is unmatched. Costco allows customers to return any product they purchased at any time, provided the product is still in good shape. Customers don’t need their receipts to return products, though keeping receipts can help speed up the return process.
Costco also has an excellent reputation for treating their employees well. The “Costco Effect” attributes to this, where employees have a reliable employer who pays them reasonably well, proud to work, and respect themselves. Costco employees also receive health insurance, pensions, and on-the-job training programs. Costco claims that this approach improves productivity, and according to a study by Harvard Business Review, they’re correct. The study found that increased pay to employees increases productivity and reduces employee turnover.
Another area where Costco differentiates itself is its in-house branded products. These products come under the brand name “Kirkland Signature.” It’s no secret that many of Costco’s branded products are just as good, or even of better quality, than their branded counterparts. For instance, a lot of Costco customers swear by the quality of their Kirkland toilet paper, batteries, and even gourmet food products such as their award-winning vodka. Costco stands by the quality of its Kirkland products, and with good reason. The retailer typically contracts top manufacturers to produce these products, so customers receive the same quality as other well-known brands at a lower cost.
However, some critics have claimed that the quality of Kirkland Signature products has become spotty over the years. Costco’s goal of maintaining the quality of these products while keeping their prices low can be challenging. Costco appeared to have addressed this issue by creating a quality assurance program. This program ensures that Kirkland products undergo a rigorous quality check before they hit the shelves, ensuring various problems are caught before unsatisfied customers bring them in as returns.
Finally, Costco claims to be eco-friendly. The retailer has a program that engages suppliers to make sustainable products and as of 2019, Costco stock 174 warehouse with solar panels out of its 785 location. Moreover, the company recently introduced a new set of compostable items such as spoon, forks, and plates in place of their disposable plastic counterparts. Critics have argued that examples such as their Kirkland bottled water, which comes to the stores from a facility in California’s driest desert region, prove these eco-friendly claims false. However, it’s generally true that Costco is interested in sustainable practices. They’re making efforts to lead the charge by providing products that emphasize and support a better environment.
In conclusion, many of Costco’s claims are valid. The company has made significant strides in delivering on their goals, such as providing less expensive products and maintaining an eco-friendly business model. However, some areas, such as the quality of their Kirkland products, may require scrutiny and improvement. Overall, though, it’s safe to say that when it comes to the claims Costco makes, the retailer generally delivers above industry standards. No wonder their membership base continues to grow every year.