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Just how did Costco keep its hotdog combo’s price at $1.50 since 1985 in spite of inflation?


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The internet is abuzz with the tale of Costco’s $1.50 hot dogs, a price that has remained unchanged since 1985. This enduring deal has become a symbol of Costco’s commitment to value, sparking widespread online discussion.

 

The story begins in the mid-1980s, when Costco introduced its now-iconic hot dog and soda combo. Despite inflation and rising costs, the price of this beloved combo has remained at $1.50. This pricing strategy was initially sentimental, rooted in the history of Costco’s late chairman, Jeffrey Brotman, and his early business venture of operating a hot dog cart.

 

As costs rose over the years, maintaining the $1.50 price tag became a challenge. The solution? Costco built its own hot dog manufacturing plants in Los Angeles and Chicago, bypassing more expensive third-party suppliers. This move ensured the combo’s profitability, allowing Costco to uphold its pledge of keeping the price steady.

 

The steadfastness of the $1.50 hot dog deal, despite economic pressures, has made it a trending topic online. It’s a testament to Costco’s dedication to providing value to its customers, even if it means going to great lengths like building their own hot dog manufacturing plants.

 

So, what are your thoughts on this? Does the story behind Costco’s $1.50 hot dog make you appreciate the deal more? Share your views in the comments below!

 

 

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Top image: Eric Broder Van Dyke | Dreamstime.com

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