Why Brands Shouldn't White Label Cosco Products

Kirkland, the private label brand for cosco, is being manufactured by the exact brands that are placing their product in cosco. Brands agree to create as quality of a product by jim senegal and cosco standards and undercut their own product's price because they need it to be 15 to 20 % cheaper. Why would brands do this? Well, one i think it's because brands actually can make good money becoming a manufacturer for cosco and effectively white labelling their product. A marketing expense is a very large expense on a per productor per unit basis. It makes just selling the white labelled product to cosco actually a profitable endeavor.