Costco Vows Again to Not Raise the Price of Its Hot Dog Deal; Here's Where It Gets Its Profits Instead
Don't worry, everyone. Costco Wholesale's (NASDAQ: COST) new CFO has confirmed that the famous $1.50 hot dog and soda lunch combo is not going away anytime soon. The warehouse chain has kept the hot dog deal at the same price for close to 30 years as a way to give value back to its members. Management believes it is a great customer retention tool to keep providing that value while making a profit in other ways.
Costco clearly doesn't make money on its $1.50 hot dog deal. So how exactly does it generate a profit? Let's take a closer look and find out.
Costco is famous for its low prices. You can get significant savings on basic household items even compared to other mass retailers like Amazon and . Large jars of peanut butter can be something like 30% cheaper if bought at Costco.
Source Fool.com