Costco's signature hot dog and soda combo has been $1.50 for more than three decades now and it works for them! Costco sold 135 million combos last year!
The $1.50 hot dog is a secret weapon for Costco though. Costco full admits that they keep it at that price because you, we, come for the deal and then end up spending money in the store, not to mention $60 or $120 for a membership every year!
This should come as no surprise but Costco makes little to no profit on its $1.50 dogs.
Good news: The co-founder of Costco says he isn't going to mess with the price either!