Being Frank About Costco’s $1.50 Hot Dog Combo, by Thomas McArdle

Sometimes losing money makes money. From Thomas McArdle at The Epoch Times via zerohedge.com:

Costco’s new CFO, Gary Millerchip, sent disciples of the ultra-low-priced warehouse chain into ecstasy when he told Wall Street analysts in May that the price of its legendary $1.50 quarter-pound, all-beef hot dog and soda with free refills would, despite raging inflation, remain at the price it’s held for about four decades.

“To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Millerchip said, correcting an iffier statement that had been made by his immediate predecessor, Richard Galanti.

Customers wait in line to order below signage for the Costco Kirkland Signature $1.50 hot dog and soda combo, which has maintained the same price since 1985 despite consumer price increases and inflation, at the food court outside a Costco Wholesale Corp. store in Hawthorne, California, on June 14, 2022. (Patrick T. Fallon/AFP via Getty Images)

A free market means sellers having full freedom to set the prices of their wares or services, even if it includes the “loss leaderpractice of selling at a price that seems to lose the business money. There are many reasons a retailer sells something at a money-losing price, such as to make a splash as a new business in first entering a market or to engender customer loyalty—which can result in sales of other items that do make a profit.

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One response to “Being Frank About Costco’s $1.50 Hot Dog Combo, by Thomas McArdle

  1. The great lawyer Frito Pendejo graduated Magna Cum Laude from Costco law and saved Not Sure from the wrath of the house of representin.

    President Dwayne Elizondo Mountain Dew Camacho eventually pardoned him for his heroic here’s how you water food crops act, say what you will about Dwayne Herbert but he loves him some America and wants to improve it and keep it rolling for those coming up.

    People still eat cognitive ability destroying frankenfood cutting room floor stuff?

    No wonder were on the USS Tittanica with a huge iceberg up ahead.

    Cue the George Carlin rant about redundant masses of protoplasm and sometimes you gotta too far to wake people the F’ up.

    I don’t even buy some of my staples anymore due to never ending price increases and it is almost Weimar where the price just changes overnight.

    The people’s dumpster has some great prices but you better get there fast.

    Yes we can, si se puede!

    Just this in from Donald Sutherland & Kevin Costner:

    A Meeting With Mr. X (JFK 1991)

    Like

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