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Costco agrees not to raise the price of its $1.50 hot dog combo

Rest assured, Costco and wiener fans — although inflation has pushed the cost of groceries to their highest levels in years, the budget retailer has no plans to increase the price of its legendary hot dog combo at $1.50.

The wholesale club’s new CFO, Gary Millerchip, made that point during a call with Wall Street analysts this week to discuss third-quarter results.

“To clear up some recent media speculation, I also want to confirm that the $1.50 hot dog price is safe,” Millerchip said, referring to Costco’s hot dog and soda deal.

While it may seem like a minor detail for a global retail chain valued at $354 billion, Costco’s low-cost dog has become an emblem of the company’s commitment to creating value. In short, it’s great marketing. Costco hasn’t raised the price of its hot dogs since 1985.

Costco has not changed the price of its popular $1.50 hot dog and soda combo, seen here advertised in the food court of the retailer’s Danville, Calif., store since 1985.

Smith/Gado/Getty Images Collection


Costco even has repressed who uses his food court to ensure that only warehouse members can get dogs at a discount. A basic Costco membership costs $60 per year, while the executive membership, which offers perks like 2% cash back, costs $120 per year.

Costco better emphasize its affordability as inflation-weary consumers turn to everything from fast food to takeout coffee. Target, Walmartt, Walgreens and other retailers have also recently have lowered their prices on a range of products.

Of course, the Costco dog isn’t the only product whose price seems from yesteryear. Other popular products whose inflation-adjusted prices have remained relatively low, or even fallen, over the years include coffee, televisions and airline tickets.

News Source : www.cbsnews.com
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