A Costco food court employee worked behind the counter for 4 years. She served roughly 2,000 hot dogs per week. She watched families walk in for a $1.50 hot dog combo and walk out with $340 in groceries.
She told me something most Costco shoppers have never been told:
"The $1.50 hot dog and soda combo has been $1.50 since 1984. Forty-one years. Same price. No inflation adjustment. No shrinkflation. No 'new recipe, same great value' rebranding. $1.50 in 1984. $1.50 in 2026. The inflation-adjusted price should be over $4.50 by now. Costco sells it for $1.50. And they lose money on every single one."
She said when Costco's CEO Craig Jelinek told co-founder Jim Sinegal that the hot dog was losing money and suggested raising the price to $1.75, Sinegal reportedly replied: "If you raise the price of the effing hot dog, I will kill you."
The price has never changed.
"The hot dog isn't a product. It's a promise. It's Costco telling you: 'We will lose money to keep our promise to you.' And it's not the only product they do this with. There are 9 items in the warehouse that Costco deliberately prices at or below cost not because they're charitable, but because these loss leaders are the most profitable products in the building. Just not in the way you think."
Here are the 9 products Costco deliberately loses money on and the business strategy behind each one:
@metalelitest@Fill_the_Void@JoshuaArieh@ufc It did almost look like when he pulled his shoe off the right foot he tweaked it and then made the extra hop as to not land on his right foot. With an ACL you can be good in a straight line so he definitely coulda fooled everyone on the walkout. Who knows?
@NoFilm_Analysis 12 mil a year with incentives upgrades really isn’t that much for a very solid TE with high upside and another potential stud TE on a 2nd round rookie deal
@hoIdthattiger@ConnecticutSun Basically all the starters not playing isn’t something I’ve ever seen before but luckily they won and can say it was great coaching
@Losha157@EricLDaugh Our tax returns were substantially more than ever before. Hourly employee here who works plenty overtime. When I first heard no tax on overtime I was dancing, after finding out it’s basically no tax on 1/3rd of overtime I wasn’t as happy. Still 100% of 1/3rd is ALOT more than 0.
Profitable week ship has sailed, but my last 2U play is NE -3.5. Feel like I was definitely on the right side of both losses (GB and PHI), but if you can’t bring your ticket back to the window, that “right side” bs doesn’t matter.
🤷🏻♂️🤷🏻♂️🤷🏻♂️ 97% chance to cover up 27-16 with 6 minutes left and Chicago gets another miracle. Caleb Williams and that Bears defense did what they had to do. On to the next one.