Business & History
The story behind the most famous loss leader in retail.
$1.50
Unchanged since 1985
The Costco hot dog combo is one of the most famous loss leaders in retail history. When Costco co-founder Jim Sinegal introduced the $1.50 hot dog and soda combo in 1985, he made a commitment to keep the price forever. Even as inflation eroded margins, Costco refused to raise the price — because the hot dog isn't about profit. It's about brand identity.
Former CEO W. Craig Jelinek once told Sinegal they were losing money on the hot dogs and needed to raise the price. Sinegal famously replied: "If you raise the price of the hot dog, I will kill you. Figure it out."