Hot Dogs; Costco's Not-so-Secret Weapon

As someone who loves getting a hot dog every time I'm at a Costco, this makes me happy:

$1.50. That's been the price of Costco's signature hot-dog-and-soda combo for more than three decades.

The humble $1.50 hot dog is a secret weapon for the big-box warehouse club. It's one of the perks that helps persuade shoppers to dish out $60 or $120 for a membership every year.

 

"I know it sounds crazy making a big deal about a hot dog, but we spend a lot of time on it," Costco co-founder Jim Sinegal told The Seattle Times in 2009. "We're known for that hot dog. That's something you don't mess with."

 

Costco makes little to no profit on its $1.50 dogs, and inflation makes the price seem more dated every year. But it's unlikely to change.

 

"It's somewhat sacrosanct," Richard Galanti, Costco's longtime chief financial officer, said in an interview.

Bolds are my own.