Costco's $1.50 hot dog strategy: The hidden economics of loyalty

In the world of retail, few strategies are as iconic as Costco's $1.50 hot dog and soda combo. This seemingly simple offering has become a cornerstone of the Costco experience, symbolizing the company's commitment to value and customer loyalty. But what lies behind this pricing strategy? How does a hot dog help drive membership renewals and overall sales? Let’s dive into the hidden economics of Costco’s hot dog strategy and explore how it shapes customer loyalty and profitability.