The Economics Involved in Costco's $1.50 Hot Dogs

Costco will sell you an all-beef hot dog and a drink for just $1.50. You have to admit that's a cheap lunch. I was surprised to learn that the price has been the same for 40 years! Still, 40 years ago, that would have been considered expensive for a hot dog, until you calculate the assortment of condiments available and that you get free unlimited soda refills, and with all that you have a bargain even in the early '80s. But now Costco is definitely losing money on each hot dog. To explain why they refuse to raise the price of their dogs, Weird History Food dips into the history of Costco, and indeed the history of warehouse clubs as an entire category of store. Now I want a hot dog, but alas, I have never been to Costco because the nearest store is more than an hour away.


More Neat Posts

Loading...