Adjusted for inflation, the Costco hot dog should be priced at $4.37 in today’s dollars (January 2024).
Costco’s iconic $1.50 hot dog combo has been a staple in its food courts since its introduction in 1985.
Over the years, this wallet-friendly offering has remained a favorite among customers – and at that same time has remained at the unbelievably low price of $1.50.
Based on calculations using the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) data…
The $1.50 price tag for Costco’s hot dog combo in 1985, when adjusted for inflation, equates to approximately $4.37 in today’s dollars.
In theory, Costco could easily have justified raising the price of the Costco hot dog over the years to $4.37, the Costco hot dog instead remains a remarkable bargain at its current price of $1.50.
So Why Keep The Costco Hot Dog at $1.50?
The stark contrast between the inflation-adjusted value and the actual price underscores Costco’s commitment to providing exceptional value to its customers – plus it’s a great marketing ploy.
The founder of Costco, Jim Sinegal has been quoted saying:
“If you raise the [price of the] effing hot dog, I will kill you”
Jim Sinegal
So while the ability of the $1.50 hot dog combo to withstand the test of time has been quite impressive, it is more than a feat of smart pricing. It makes business sense.
You head into the store for a $1.50 Costco hot dog, and you may come out having just spent well over $100 in other goods.
We all know it is nearly impossible to get in and out of Costco without spending that much.
The Costco hot dog combo comes through as a symbol of consistency, quality, and value within the Costco experience.
But it also brings you into the store, where you will spend a heck of a lot more than $1.50.
Still, we love Costco for it!
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