Jason Deforest

Nah.

[Jason Deforest @JayDeforest]

@PinderReport 😵‍💫

[Frank Seravalli @frank_seravalli]

Not to throw another log onto the fire for #Flames, but the potential exodus continues.

I'm told Tyler Toffoli also plans on not re-signing in Calgary.

[Jason Deforest @JayDeforest]

Stuck in a midnight traffic jam, can confirm she big.

[Jason Deforest @JayDeforest]

Hello I'm in Toronto. Is there much to do here or..?

[Jason Deforest @JayDeforest]

@PinderReport Calves

[Jason Deforest @JayDeforest]

Attn @960boomer

[Trung Phan @TrungTPhan]

The Costco hot dog combo is a legendary meme.

But how does it still only cost $1.50? Introduced in 1985, the price of that combo should be ~$4.20 if adjusted for inflation.

Thankfully, the $216B warehouse retailer has done everything in its power to keep the price down.

And Costco sells A LOT of them: 130m+ hot dogs a year (more than all MLB teams combined).

Many believe the $1.50 combo is a “loss-leader” for Costco, but this is incorrect.

In a 2009 interview, Costco co-founder and former CEO Jim Sinegal told the Seattle Times that Costco doesn’t “engage in loss leaders” and “the only time we sell below cost is when we’ve made a mistake and have to mark it down”.

However, the retailer does cap its margin at 14% and drives many products to near break-even.

Here’s how Costco has managed to keep the cost of the inconic hot dog combo at $1.50:

1️⃣It dropped leading hot dog suppliers like Hebrew National and Nathan’s because they wouldn’t lower prices

2️⃣In 2009, Costco built its own hot dog manufacturing plant in LA (and has a second one in Chicago)

3️⃣ It got better pricing on buns, ketchup and mustard

4️⃣ It removed onions and sauerkrauts as free condiments

5️⃣ It dropped Polish sausages

6️⃣ The pop that came with the combo was swapped from a can to refillable fountain soda

Costco’s effort to keep hot dog prices low is also the source material for the greatest quote in business history.

In 2018, the current Costco CEO Craig Jelinek was recounting a conversation he had with Sinegal, who he just replaced as CEO.

Jelinek told Sinegal he wanted to raise the price of the $1.50 hot dog and pop combo.

Sinegal shot back, “If you raise the [price of the] f**ing hot dog, I will kill you. Figure it out.”

Costco has figured it out and, in September 2022, the company’s CFO Richard Galanti confirmed that the hot dog combo would remain at $1.50 despite rising inflation.

“There are some businesses that are doing well with margin like gas business on a smaller way -- in the travel business,” said Galanti. “Those things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and the soda a little longer, forever.”

Forever sounds about right.

[Jason Deforest @JayDeforest]

@960boomer PICK EM UP

[Jason Deforest @JayDeforest]

@thedirtynil Yes yes yes

[Jason Deforest @JayDeforest]

Gimme all the throwback Lego.

[Jason Deforest @JayDeforest]

@danozzi Man don't

[Jason Deforest @JayDeforest]

@FlamesOrganist Ice Ice Baby. Let's go.

[Jason Deforest @JayDeforest]

@RyanNPike @AHLWranglers And the popcorn + pop were cheap 😍

[Jason Deforest @JayDeforest]

We went to the @AHLWranglers game yesterday. Phillips, Wolf, Pelletier etc are a blast to watch and it's prob the most affordable thing you'll do all month. Plus the merch is sick. Make it happen.

[Jason Deforest @JayDeforest]

@RyanNPike @AHLWranglers I like the lower bowl only crowd packed in there, feels/sounds really good

[Jason Deforest @JayDeforest]

✌🏻

[Jason Deforest @JayDeforest]

brb, gotta play #GodofWarRagnarok for just like 60 hours

[Jeremy Roenick @Jeremy_Roenick]

Way to go @NHLFlames !!! Chokers. Hope games like this don't haunt you in April!!!👎👎

[Jason Deforest @JayDeforest]

Very much enjoying. 90's vibes.

[Jason Deforest @JayDeforest]

This is not a fun person to be around

[Zac Stevens @ZacStevensDNVR]

Russell Wilson worked out and stretched for four of the eight hours on the flight from Denver to London. Said he was doing high knees in the aisle when the rest of the guys were asleep.

[Jason Deforest @JayDeforest]

Make Kadri the captain. Like, yesterday.