The retailer Costco has famously sold its hot dog and soda combo for $1.50 for nearly 40 years. How long can it last?
Maybe forever. Find out how on the “Something Offbeat” podcast this week.
“Why not? Look, Costco’s profit margin is fat enough that they can give away hot dogs to do it,” said Chris Thornberg, the founder of Beacon Economics.
In fact, the big box store’s founder, Jim Sinegal, reportedly once told the company’s current CEO Craig Jelinek, “If you raise the (price of the) effing hot dog, I will kill you.”
Even as inflation has made prices for other goods go up, Costco competitor Sam’s Club has got in on the cheap hot dog action. It began offering the same deal for $1.38 in an effort to ease the burden on consumers.
Thornberg explained why this strategy makes sense. He also dives into the root cause of our current inflation problems and more with host Mike Rogers.
Start your week out with “Something Offbeat” when new episodes drop every Monday morning, and binge our current collection of episodes that get deep beyond the surface of the most unusual headlines we can find. If you have suggestions for stories the podcast should cover, send them to us at somethingoffbeat@audacy.com!
Related
