Costco has been selling its famous hot dog combo for $1.50 since the 1980s and has no plans to change the price. Despite inflation, the company's new CFO confirmed that the price will remain the same, maintaining customer loyalty and serving as a smart public relations move. The Costco hot dog is an example of loss leader strategy, in which certain products remain below market cost to attract customers and boost sales of more profitable items. The hot dog's history and affordability have made it a cult favorite and a significant part of Costco's culture. The hot dog would cost closer to $4.40 without this strategy.
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00:00It's Benzinga, and here's what's on the block.
00:02Costco has been selling its famous hot dog combo for $1.50 since the 1980s and has no
00:08plans to change the price.
00:10Despite inflation, the company's new CFO confirmed that the price will remain the same,
00:14maintaining customer loyalty and serving as a smart public relations move.
00:19The Costco hot dog is an example of loss leader strategy in which certain products remain
00:23below market cost to attract customers and boost sales of more profitable items.
00:28The hot dog's history and affordability have made it a cult favorite and a significant
00:32part of Costco's culture.
00:34The hot dog would cost closer to $4.40 without this strategy.