A major retailer intentionally loses money on every hot dog sold to keep customers loyal
Costco maintains a legendary $1.50 hot dog combo price that has defied decades of inflation, serving as a strategic loss-leader that prioritizes long-term member loyalty over immediate profit margins.
Since its introduction in 1985, Costco's iconic hot dog and soda combo has remained exactly $1.50 despite U.S. consumer prices rising over 250 percent. The retailer intentionally loses money on every unit sold, accepting a loss of roughly 10 to 15 cents per frankfurter to drive massive foot traffic into its warehouses.
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