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loss leader pricing

Costco Loses Money on Every Hot Dog. Here's Why It's Genius.

Wilson K Lee - How To Open A Restaurant / F&B Shop

Costco has maintained a unique pricing strategy since the 1980s by selling its famous hot dog and soda combo for exactly $1.50, a price point it refuses to raise despite decades of inflation and rising ingredient costs. The company reportedly loses money on every single unit sold intentionally becau …