How Costco Makes Money on a $1.50 Hot Dog

Costco has sold its hot dog + soda for $1.50 since 1985, and it sold about 245 million of them last year. So how does one of the biggest companies on Earth make money on something this cheap? It doesn't, and that's the whole point. Chapters: 0:00 The $1.50 mystery 0:47 Chapter 1: The $1.50 paradox 1:54 Chapter 2: The man who refused 2:42 Chapter 3: The factory 3:43 Chapter 4: The real business 4:48 Chapter 5: The promise 5:49 Chapter 6: The math 6:40 Chapter 7: The bigger playbook 7:31 Chapter 8: Why nobody can copy it 8:22 Finale: The twist Sources: Costco fiscal 2025 results; CNN; NPR; Fox/Scripps (March 2026); Tasting Table; Food Republic; 425 Business (2018 Jelinek interview). Visuals are AI-generated illustrations. This channel is not affiliated with Costco. #Costco #BusinessStrategy #HiddenMargins