The Secret Behind Costco's $1.50 Hot Dog and Soda Combo

Costco has famously kept its hot dog and soda combo at $1.50 since 1985, despite rising costs over the decades. This stubborn price point is part of Costco’s strategy to keep customers happy and coming back, serving as a symbol of the company’s value promise. Even as inflation impacts food costs, the company goes to great lengths, including building its own hot dog factories, to preserve the low price. Executives believe the combo reinforces the brand’s reputation for affordability and creates loyalty among its members.

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