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Costco, The $1.50 Hot Dog Combo And Why It’s Still Here
Costco, The $1.50 Hot Dog Combo And Why It’s Still Here.
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ABOUT WHY THE $1.50 HOT DOG COMBO IS HERE TO STAY
Most do not realize it, but this meal option has been the same price since 1985 — selling some 100 million hot dogs a year. To answer the question of how Costco has been able to charge the same price for 35 years, Business Insider has asked several Costo employees from the rationale behind the decision.
A final answer was eventually given by David Fuller, the assistant vice president of publishing, in a 2009 edition of Costco Connection, stating that the long-standing steady price was a result of its cost-plus business model rather than a “what the market will bear” model. With Costco’s model, “a business can operate on a fair markup and still pay all of its bills.” Who knew selling hot dogs could be so complicated?
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