We go to our local Costco every weekend. It is always crowded.
When we get to the billing counter, we know to expect a long queue on the other side waiting to buy hot dogs and pizza.
The Costco Hot Dog is the stuff of legend. It was launched in 1985 for $1.50. That price has stayed the same since – for forty years! Costco founder Jim Sinegal reportedly told Costco CEO Craig Jelinek in 2013 that he’d kill him if he raised prices on the Hot Dog.
Costco sells 150 million to 200 million hot dogs annually. They could easily raise the price a couple of dollars and add a sizeable chunk of change to their top and bottom line.
But they choose to treat it as a symbol of what their brand is about – low prices and exceptional value. That’s clearly worth a lot more than the couple hundred million dollars they’d make.
Values aren’t values until they cost you money.
