Costco Wholesale isn’t selling out on one of its most signature deals anytime this decade.
The retailer corporation has become known as one of the most established big-box retail stores over the years, but perhaps its best deal in the entire store came at the snack bar – where a soda and a giant hot dog are priced at only $1.50.
Even though prices for other items at the store may increase, Costco CFO Richard Galanti said during a presentation on fourth-quarter financial results Thursday that the famous combo will stay inexpensive.
“We really don’t look at it that way,” he said on the call, per MarketWatch. “Hold the price on the hot dog and the soda a little longer – forever.”
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The $1.50 for the hot dog and soda is truly a deal. According to MLB statistics, the average price of a ballpark, average-sized hot dog at a pro baseball stadium is over $6. And according to MarketWatch, if the Costco price were adjusted to address inflation, customers would be looking at a deal over $4.
In a previous interview with 425 Business, Costco CEO Craig Jelinek explained why the combo would never spike in price, noting Costco co-founder Jim Sinegal was hellbent on keeping it at $1.50.
He said in the 2018 interview: “I came to (Sinegal) once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’ And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out.
“What we figured out, we could do is build our own hot dog-manufacturing plant (in Los Angeles) and make our own Kirkland Signature hot dogs. Now we are doing so much hot dog business that we’ve opened up another plant in Chicago. By having the discipline to say, ‘You are not going to be able to raise your price. You have to figure it out,’ we took it over and started manufacturing our hot dogs. We keep it at $1.50 and make enough money to get a fair return.”
Costco, which opened in 1983, was ranked No. 10 on the Fortune 500 rankings of the largest United States corporations in 2021. There are currently 583 locations in 48 U.S. states. Membership fees are $60 and the store’s gas prices are also famously cheap.