By Josie Barker
In today’s world, it typically costs around five to ten dollars to purchase one standard hot dog. Ten whole dollars to spend on just a singular weiner and bun combo; one that’s probably not even that great. I mean, seriously, in this day and age finding a high quality, premium hot dog is like finding a needle in a haystack. It’s practically impossible unless you’re willing to sacrifice twenty bucks for an individual dog. Living in a world where the price of glizzies skyrocket daily can feel upsetting. I mean, I sure love consistency on dog pricing and on dogtaste, and I’m sure many—if not all of you—can agree the common hot dog should have a set price, and a consistent flavour. Fear not you hot dog lovers, because one company continues to answer our hot dog prayers; the almighty warehouse of large boxed goods *drum roll please*, COSTCO! For decades, Costco’s food court has offered a hot dog and fountain drink for $1.50—undoubtedly a price that has become almost as famous as the warehouse itself.
In the mid–1980s Costco introduced its iconic $1.50 hot dog and soda combo. Nearly four decades later, that same meal still costs $1.50. Jim Sinegal, Costco’s co-founder, originally established the $1.50 price for the hot dog and soda combo. According to Costco CEO Craig Jelinek, when he approached Sinegal about raising the price in 2018, Sinegal threatened to kill him if he did. (Costco’s Co-Founder Told The Company’s CEO He’d Kill Him If He Raised The Price Of The Chain’s Hot Dogs). Costco executives have continued to defend the low price, refusing to raise it while turning the combo into a symbol of the company’s commitment to customer value. Truth be told, in this day and age, corporations are more than stingy. In an era when corporations seem determined to squeeze an extra dollar out of the consumers wherever they can, Costco considerately keeps its food court items inexpensive for buyers. Is this just another big corporation trick to lure in customers? Probably, actually, most definitely. Costco’s business model provides some evidence for that suspicion: companies sell certain products below their market cost in order to get customers in the door and, ideally, putting even more profitable goods in their carts. This tactic could explain Costco’s decision to keep its hot dog so inexpensive. A customer might enter the warehouse for the $1.50 meal, browse the aisles, and ultimately purchase other products. Most notably, this strategy could turn regular shoppers into loyal members who justify the annual fee with Costco’s yummy affordable food. However, despite the strategic intent of Costco to merely draw potential customers into the warehouse through the persuasion of food, I continue to regard them as one of the most generous warehouse retailers in the entire globe.
So, the next time you crave a crispy, tender, and juicy hot dog coated in a funky relish, onion, ketchup mixture, just remember, Costco has your back, as well as a refreshing soda included with your meal to wash down your whole meal for a wonderful price.