Why Costco Refuses to Raise the Price of Its $1.50 Hot Dog

Costco has sold its famous hot dog and soda combo for just $1.50 for decades. But with inflation, higher wages, rising food costs, and a business generating hundreds of billions of dollars in annual sales, why hasn't Costco raised the price? The answer reveals much more than the economics of a cheap lunch. In this video, we explore the surprising business strategy behind Costco's $1.50 hot dog — from bringing production in-house and changing food court operations to Costco's membership model and the psychology of keeping one remarkably memorable price unchanged. We'll look at how a $1.50 meal became a symbol of value, why Costco has worked so hard to protect the price, and what this tiny transaction can teach us about customer trust, pricing strategy, and building a powerful brand. The Logic Behind It explores the stories, strategies, economics, and decisions behind the companies and products we see every day. Subscribe for the next story. #Costco #Business #BusinessStrategy