Why Costco's $1.50 hotdog hasn't changed in 40 years
54sThe shocking inflation-adjusted price and the 'loss leader' strategy reveal a business tactic that sparks curiosity and debate.
▶ Play ClipAI Summary
This video explores the economics behind Costco's famous $1.50 hot dog and soda combo, which has remained unchanged since 1985. It explains how the combo serves as a loss leader to drive customer traffic and significantly increase overall spending.
[00:02]
The $1.50 Combo Since 1985
Costco's hot dog and soda combo has been priced at $1.50 since 1985, remaining unchanged for 40 years.
[00:16]
Inflation-Adjusted Price
According to Reddit, the inflation-adjusted price for the combo in 2024 would be $4.45.
[00:29]
Loss Leader Strategy
The hot dogs are considered a loss leader, sold at a loss to attract customers into the store.
[00:42]
Average Spend Per Visit
Costco's data shows the average purchase amount is about $150, meaning customers who come for the $1.50 deal often spend 100 times more.
[00:56]
Only Change: Pepsi to Coca-Cola
The only change in the last 12 years was switching from Pepsi to Coca-Cola products for the combo.
Costco's $1.50 hot dog combo is a deliberate loss leader that drives massive customer spending, and the company is unlikely to change the price anytime soon.
Mentioned in this Video
Study Flashcards (4)
Since what year has Costco's hot dog and soda combo been priced at $1.50?
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Since what year has Costco's hot dog and soda combo been priced at $1.50?
easy
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1985
00:02
What would the inflation-adjusted price of the combo be in 2024?
medium
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What would the inflation-adjusted price of the combo be in 2024?
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$4.45
00:16
What is the average purchase amount per Costco customer visit?
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What is the average purchase amount per Costco customer visit?
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About $150
00:42
What was the only change to the combo in the last 12 years?
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What was the only change to the combo in the last 12 years?
easy
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Switching from Pepsi to Coca-Cola products
00:56
💡 Key Takeaways
⚖️
Loss Leader Concept
Explains a core retail strategy where selling at a loss attracts customers who spend much more.
00:29
📊
Customer Spending Multiplier
Reveals the 100x spending ratio, showing why the loss leader is profitable overall.
00:42Full Transcript
[00:02] своем знаменитом наборе из хот-дога и газировки за 1,50 доллара , но не так, как вы думаете. Дело в том, что этот набор стоит 1,50 доллара с 1985 года, то есть цена остаётся неизменной на протяжении последних 40 лет. Так зачем же Costco это делает? И что еще
[00:16] этом зарабатывают? Согласно Reddit, скорректированная на инфляцию цена этого скорректированная на инфляцию цена этого набора в 2024 году должна была составлять 4,45. На самом деле, эти хот-доги считаются товаром-приманкой, и
[00:29] компания будет продавать его себе в убыток, чтобы привлечь покупателей . Согласно собственным данным Costco, средняя сумма покупки составляет около 150 долларов. Таким образом, они знают, что если им удастся заманить вас
[00:42] за 1,50 доллара, вы, скорее всего, потратите в 100 раз больше. И даже с учетом всей этой продукты питания, я не думаю, что Costco собирается что-либо менять в ближайшее время. Единственное изменение за последние 12 лет — это переход от
[00:56] Pepsi over to Coca-Cola products for the combo.
