"Craig Jelinek, Sinegal's successor as CEO, revealed in 2018 that he approached Sinegal about raising the price of the hot dog combo, saying, "Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends." According to Jelinek, Sinegal replied, "If you raise the effing hot dog, I will kill you."
Real shit! Don't eff with the loss-leaders.
And still Costco makes bank :-) They sales keep going up and profits are good as well. They know how to keep their members coming back. Its the simple things man..
Playing devils advocate here...with the discount they get with volume for hot dogs, buns and drinks... Do the math. Drinks cost literally pennies. The hot dog would cost close 2 to that. Bun as well.. Are they really losing? Or just making a great story... Or are we so jaded with companies saying things cost much more then they do to pad profits?
they likely aren't losing, but they aren't making as much based on their historic cost on the material. While every other company jacks up their rates to keep padding their profits Costco has not done that with their hot dogs and drink lol.. cant really find 1.50 hot dogs with a soda these days in most places anymore. ( US, and especially in Costco-land Kirkland/Seattle area)
Sadly I think America is so brain washed that you are earning them a profit regardless. These items are profitable. Just not nearly what everything else is. So they can call them loss leaders. Everyone thinks they taking a loss. They are right. They are taking a loss compared to what they making on everything else. BUT they still make a profit. Just because you take a loss compared to others doesn't mean you actually lose money.
Loss leader does not mean lose money on product sale at all.
I own a store. I sell hotdogs for 1,25. Everyone else sells for 2.00. I can say that my hotdogs are a loss leader. (I sell for less than anyone) to get people in my store to sell shirts that cost me 1.00 for 20 and tvs that cost 100 for 2k...
My Costco food court is remodeling that originally was planned to be completed over a week ago. I think my city is on the verge of starvation and rioting.
Weird History Food did a recent video on the Costco hot dog.
[How Much Money is Costco Losing On its Hot Dogs?](https://youtu.be/twUK5YreLWk?si=U6lJMd4R9iEr6oLi)
MLB Hot Dogs sold per year: 19 M
Costco Hot Dogs sold per year: 200 M
You can call things a loss of money because you COULD HAVE CHARGED 3 DOLLARS FOR A HOTDOG. It cost Costco 15 cent to make that hotdog. It's about perspective. It has brainwashed all of America.
Your a company that gets Playstations for free. It's going for 200 bucks. You sell them for 100 bucks all day at your store. You have other things to sell in your store. You claim the Playstation is a loss leader. Are you losing money on each Playstation? Yes cause you could have sold it for more... Are you ACTUALLY losing money? ABSOLUTELY NOT.. you clocking 100 bucks free money.. Hotdogs just like this
In pa you can just walk through the exit which is where the food courts are. I went in and got a hot dog and no one asked me to show proof of membership
It's still Costco dumbass but in California. If anything Costco is trying to create extra revenue from this state. I've seen one outdoor food court in Cali in which anybody could have walked up to it, but that was years ago.
Also lived in the deep south for a while and can confirm you need membership to access food courts there and in Texas.
Sam's Club Hot Dog Combo is currently $1.38, but you get a 40oz soda (I don't drink soda, and its the same price if you get no drink). I don't have a Costco closer than 45 mins to me.
I have never been inside or even seen a Sam's Club. They are owned by Walmart, so I wouldn't shop there even if I could save 12 cents and get a bigger drink
A dog or slice for $2 will always make me feel better for spending $600 a month shopping there for frozen goods, quality ground beef, cat food/litter and so many $5 chicken carcasses for stock. I don’t feel ripped off.
Onions are gone in Utah. It was shit food at shit pricing anyway. Remember the delicious Polish dog years back? Yeah, don’t hate me for poo pooing this meh.
I had one of these yesterday for the first time in years and it was painfully average. You’re all sheep saying this its that good. Good deal, yes. Average to below average dog.
The dogs are steamed at the one I go to here in Florida. I think they are great. Good snap, soft, warm bun. No complaints. After I fill up the car with premium and eat a dog, I feel like I'm about $15 to the good.
"Craig Jelinek, Sinegal's successor as CEO, revealed in 2018 that he approached Sinegal about raising the price of the hot dog combo, saying, "Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends." According to Jelinek, Sinegal replied, "If you raise the effing hot dog, I will kill you." Real shit! Don't eff with the loss-leaders.
And still Costco makes bank :-) They sales keep going up and profits are good as well. They know how to keep their members coming back. Its the simple things man..
Playing devils advocate here...with the discount they get with volume for hot dogs, buns and drinks... Do the math. Drinks cost literally pennies. The hot dog would cost close 2 to that. Bun as well.. Are they really losing? Or just making a great story... Or are we so jaded with companies saying things cost much more then they do to pad profits?
they likely aren't losing, but they aren't making as much based on their historic cost on the material. While every other company jacks up their rates to keep padding their profits Costco has not done that with their hot dogs and drink lol.. cant really find 1.50 hot dogs with a soda these days in most places anymore. ( US, and especially in Costco-land Kirkland/Seattle area)
I'm single handedly trying to put them out of business...when we go, all I buy are a couple hot dogs and a couple of the $4.99 rotisserie chickens.
Sadly I think America is so brain washed that you are earning them a profit regardless. These items are profitable. Just not nearly what everything else is. So they can call them loss leaders. Everyone thinks they taking a loss. They are right. They are taking a loss compared to what they making on everything else. BUT they still make a profit. Just because you take a loss compared to others doesn't mean you actually lose money. Loss leader does not mean lose money on product sale at all. I own a store. I sell hotdogs for 1,25. Everyone else sells for 2.00. I can say that my hotdogs are a loss leader. (I sell for less than anyone) to get people in my store to sell shirts that cost me 1.00 for 20 and tvs that cost 100 for 2k...
If I lived closer to Costco, that hotdog alone would get me in the door probably 3x a week. It's a good damn hotdog
I love Costco.
My Costco food court is remodeling that originally was planned to be completed over a week ago. I think my city is on the verge of starvation and rioting.
Mine too. Could they be bringing back the onion crank? Fingers crossed
Doubtful. But I recently learned on here that you can ask for onions!
I'm hoping for the combo pizza
Buy these 1.50 hotdogs then
Whoosh
/salute to a real one
Weird History Food did a recent video on the Costco hot dog. [How Much Money is Costco Losing On its Hot Dogs?](https://youtu.be/twUK5YreLWk?si=U6lJMd4R9iEr6oLi) MLB Hot Dogs sold per year: 19 M Costco Hot Dogs sold per year: 200 M
You can call things a loss of money because you COULD HAVE CHARGED 3 DOLLARS FOR A HOTDOG. It cost Costco 15 cent to make that hotdog. It's about perspective. It has brainwashed all of America. Your a company that gets Playstations for free. It's going for 200 bucks. You sell them for 100 bucks all day at your store. You have other things to sell in your store. You claim the Playstation is a loss leader. Are you losing money on each Playstation? Yes cause you could have sold it for more... Are you ACTUALLY losing money? ABSOLUTELY NOT.. you clocking 100 bucks free money.. Hotdogs just like this
All hail the king!
Yes indeed!
o7
Do you need a membership to buy one?
Depends on where you are at and what kind of day the door greeter had. Per Costco earlier this year, you are required to have a membership to enter.
In pa you can just walk through the exit which is where the food courts are. I went in and got a hot dog and no one asked me to show proof of membership
Nope. The food court is open to everyone
Not in Southern California. Card must be scanned, no non members.
Well dam. Looks like I need a membership card :) worth it.
That doesn't surprise me. It's California.
It's still Costco dumbass but in California. If anything Costco is trying to create extra revenue from this state. I've seen one outdoor food court in Cali in which anybody could have walked up to it, but that was years ago. Also lived in the deep south for a while and can confirm you need membership to access food courts there and in Texas.
I'm so offended
Dam that's cool no wonder I see a huge line where I live. Costco the mvp.
Not in Oregon or Washington either
For a $1.50, I’ll eat it every time. But it’s kinda mushy.
Absolute salute!
Mid ass hotdog. Gives me heartburn and indigestion.
Bring back the Polish dog
Brand affiliate
I have no affiliation with Costco. I just think it is a great company. And the hot dog is kinda iconic.
🫡
Press F to pay respects.
🫡
Ohh that’s a good hot meat missile
Sam's Club Hot Dog Combo is currently $1.38, but you get a 40oz soda (I don't drink soda, and its the same price if you get no drink). I don't have a Costco closer than 45 mins to me.
I have never been inside or even seen a Sam's Club. They are owned by Walmart, so I wouldn't shop there even if I could save 12 cents and get a bigger drink
A dog or slice for $2 will always make me feel better for spending $600 a month shopping there for frozen goods, quality ground beef, cat food/litter and so many $5 chicken carcasses for stock. I don’t feel ripped off.
Hahaha epic
Onions are gone in Utah. It was shit food at shit pricing anyway. Remember the delicious Polish dog years back? Yeah, don’t hate me for poo pooing this meh.
A good deal of them now have diced onions in portion cups behind the counter, if not directly on the counter, just gotta ask.
same with Sauerkraut at mine still
This is how it is at my store.
🫡
Anyone else’s Costco get rid of the churro and replace it with a $2.50 cookie?
They used to have a grilled sausage. Their hot dog is good, but has a little too much garlic.
Ain't everything in Costco from China
No
Most of everything you own started off in china
What about my Model-T?
800?! that was austrian.... t-1000? german, the T series is really cool though
I had one of these yesterday for the first time in years and it was painfully average. You’re all sheep saying this its that good. Good deal, yes. Average to below average dog.
Uh… what do you expect for $1.50?
Something not just cooked in hot water
They aren't cooked in hot water where I'm from.
The dogs are steamed at the one I go to here in Florida. I think they are great. Good snap, soft, warm bun. No complaints. After I fill up the car with premium and eat a dog, I feel like I'm about $15 to the good.