The cost of the $1.50 hot dog and soda combo has not changed since 1985.
“I came to once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’ And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out.’ That’s all I really needed. By the way, if you raised to $1.75, it would not be that big of a deal. People would still buy . But it’s the mindset that when you think of Costco, you think of the $1.50 hot dog .
“What we figured out we could do is build our own hot dog-manufacturing plant and make our own Kirkland Signature hot dogs. Now we are doing so much hot dog business that we’ve opened up another plant in Chicago. “By having the discipline to say, ‘You are not going to be able to raise your price. You have to figure it out,’ we took it over and started manufacturing our hot dogs. We keep it at $1.50 and make enough money to get a fair return.”
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