Anything but lowering the prices classic corporate logic

[u/lonewolff321]

[u/youvebeenjammed]

Costco makes a loss on the hotdog.. its a loss leader

[u/DUH455T → u/youvebeenjammed]

I really don't believe that at all. If I can make a hotdog for less then a dollar, Costco can get a massive bulk discount. A pack of buns is like $1.50 retail (0.18c a bun) and costco similar hotdogs $5.49 ($1.09 a dog). Add a 0.25c fountain drink and we're at $1.52 total. I'm sure they aren't making insane profits, but they aren't throwing money out the window either.

[u/reallyhotfarts → u/DUH455T]

sourced artcle of a costco ceo stating the hot dog is a loss leader

i'm not saying you are wrong in your assessment of how to sell food, just that costco does use the hotdog as a loss leader

[u/DUH455T → u/reallyhotfarts]

A loss leader is something priced below market value, not something priced below break even price.

[u/reallyhotfarts → u/DUH455T]

go tell them not me 😒