me too， the hotdog is strategies to attract consumers

That’s exactly what they’re counting on!

Same but closer to $800 for us (family of 14 here)

Yeah, while I'm here why not buy more S#!t !

Rare that I can get the $1.50 dog for less than a hundred bucks.

Yea and not only that saying the word “losing money” is manipulation to make you feel bad they just aren’t making all the potential profits they could be making if they raised the prices on hotdogs they aren’t losing money

costco receives x100 foot traffic a dealership does, the coffee or now a days bottled products and automated coffee makers are x10 easier to use than having to buy equipment and space for hotdog. What analogy, if you can't find good analogy then just don't say it. People who liked this comment are just as bad for thinking of this. Better comparison would be amazon kindle which they have stated they lose money on but hope for people to use it to buy more products on the kindle.

costco is pretty expensive though, poor people dont go to costco

@@dakineprotoss the one in my city has the food stand located outside, accessible without a card. So at least the hotdogs are still affordable

@@dakineprotossthis the bulk is always super pricey. The hot dogs themselves are basically edible business cards

@@MrBooone i dunno, i spent $23 on a 30-roll pack of TP last October and I'm not even halfway thru it yet

​@@iampetzwatch out. Seems they're changing to all Costco, you have to have a membership to eat there.

Cheaper than 1 person at McDonalds now, and a lot healthier.

Seriously ​@@Paddy1833

@@Paddy1833 I doubt it, those chickens are swimming in grease when you take them out of the container. At least at Mcdonalds you get a pathetically small burger and a tiny handful of fries

You must be really skinny.

Spaghetti is cheaper.

better than depositing it at the casino. lmfao

And thank you for being the reason they keep it $$1.50 😀

You're saying you had the Costco hot dog combo meal a total of around 268 times? Pretty impressive.

That's oddly specific

It seems idiotic for big corporates but it's a great strategy to attract more customers.

One of the Costcos I go to that has an outside food court now requires people scan their membership card to buy anything from the food court. Those big lines don't help when there's only 1 person fulfilling orders too, occasionally someone will jump in when it gets really busy, but they're finding ways to keep costs low.

I was going to mention this before I saw your comment. It's funny how the backlash was the same hahah

Are they the same quality or size of the Costco hotdogs?

@@norwegianblue2017 No, the IKEA hotdogs seem to be smaller in size. I guess one Costco hotdog is like 1,5 IKEA hotdog.

@@zrbitax I would said 2 IKEA dogs. But for most people you're walking 2-3 miles through the store before you get to those hot dogs, where as Costco's are big sure but you're easily walking 10x more at an IKEA than a Costco. (and yes I know you don't have to walk through the store to get a hot dog, but most people do)

they make up the difference in your card fees and pharmacy. the hot dogs is just a incentive to go shop. Get it right youtuber w that video.

Tasty head cheese

Never Say NEVER 😎 Justin Bieber

😂 wonderful idea

Don't forget $0.99 Arizona iced tea

You forgot cockroaches, and Chuck Norris holding a Nokia 3310.

Apple Inc certainly introduces NEW iPhone in September every year👀💯

Only true around membership renewal time

​what are you talking about. They consistently beat gas prices of other stations,especially if you use a costco card on top of it to fill up. @@gjd424

....that's not a double entendre.

yes, this is what Those MBA guy in the suit won't understand, the only thing that they know is to cut cost to the point that their companies became a Hollow shell, To the point that they now have with zero advantage because all the advantage the og company had was already thrown away. everyone that was actually useful to the company was fired in favor for another bootlicker

@@jensenraylight8011 because the point of those MBA is Milk the company as much as possible and jump to the next scheme. It's pretty predictable. They don't care about the company longevity, they care about their pockets because they know pretty well they will get replace regardless how well they performed. Everybody is replaceable besides the owner and shareholders.

Idk dude. 1.50 is soo cheap

@@williamkreth The point of a loss leader isn't to make money directly. They're not. It's even in the name. However, the point is to be a selling point to customers because it's a really good deal, and you'll recoup your money in other products. This is a common marketing strategy, with some examples being (fittingly) hot dogs - the sausages are typically sold at a loss to make money on the pricier hot dog buns.

Agreed. It's a low profit item, but in volume, it adds up. Yes, I suppose you can call it a "loss" when the market would tell you to set it a higher price point due to margins from an economic standpoint, but Costco isn't paying more for the product than it sells it for.

Does the 1.50 includes taxes ? If so with 80 cents of material cost that leaves something like 40 cents for labor storage... add in a employee to make the hotdogs, let's say 1 hotdogs per minute, that's 33 cents of labor per dog leaving them just 7 cents of margin. Hard to quantify the rest of the cost. But at 1.50 they're likely not making money on it anymore

@@machintrucGaming Tax is not included. Also, it won't take a full minute of labor to make a single hot dog. 80 cents of material may be slightly overvaluing the raw materials. My guess is that in terms of profitability, they are making 10 to 15 cents per combo sold, While the margin is extremely low, the greater value is to use it to keep people coming in and buying everything else, as the video demonstrated.

Yeah no. If your willing to wait in a long line for a 1.50 Hotdog after shopping at costco you have issues... you just bought food to bring home to eat. You can't wait 5-20 minutes to eat better food? I can see maybe the few times you haven't eaten lunch yet but to make it a "everytime thing" no. 💀

I rather buy Hotdogs at costco take them home light up the grill and enjoy better Hotdogs while spending time with my family not inside a costco. A costco Hotdog won't do that

With rising prices, I’ve been wondering what the math is to buy the Costco hot dogs in bulk, the buns, and then drinks, and then divide it into piece count. Would it still be cheaper than 1.50?

That’s on god🙏🏻😤

When my Father was still alive,We Would go to the local Flea Market Every Sunday! IF He didn't find anything he wanted, He Always Bought a Funnel Cake and Coffee!! That way,he Would be able to say he bought something!😊

4 meals? wow, I can eat the whole chicken by myself in one sitting ,lol , granted my Bama gets a few bites too

"Calculating if the $120 Executive Membership is worth the upcharge is simple. Because you get 2%, you'll need to spend $3,000 to receive $60 in cash back. At that point, your effective annual membership rate is back down to $60." I spend WAYYYY more than $3000 annually so I make that 120 back and then some. It's worth it if you go often.

@@nathanwilliams4005 - you could spend the same $3000 on a different cash back card and not have to pay an annual fee

@@nathanwilliams4005 How do you have a big family ?

You do not need a membership for the food court

Neither food court nor alcohol requires membership. Youre misinformed.

Been a while since I've been there, but you could get the chicken bake with shrimp instead of chicken at the Costco in Tijuana.

@@Jason_QuinnWhen I visited a Costco in Japan a few months ago (I had to) they had a Bulgogi (Korean BBQ) Bake instead of the Chicken Bake. I had to get one. It was ok. I should have got the hot dog. I think the hot dog and soda combo was about 180 yen, or about $1.15 or so at the current exchange rate.

Here in France, the bread is seedless, and you can ask for onions for free too. But no jalapeños unfortunately.

they use paper bags in other places?

People are ASSHOLES with samples. Leaving trash everywhere, and gluttonous GREED. Like WTF??? Are you homeless? 😂

I know people who have Costco memberships only to eat the samples and get the hot dogs and not buy anything else. They call it the "Free Senior Lunch." They basically go every day, fill up on samples and maybe get a hot dog at the end. The membership pretty much pays for itself when you factor in how much you would actually spend buying fast food or going to a diner. They buy one $60 membership, get 2 cards, you can bring people with you, etc.

Maui too taking Rental car back for Gas and Lunch..😁😁😁

Nice! 😮

The current price in Canada is $1.50CAD, or $1.10 USD! Above, someone posted that in Japan, the price converts to $1.15USD. I wonder where in the world is the cheapest? Anyone from Mexico on here?

But your government has disarmed you, which is never a good thing for its citizens.

Got that same thing many times...or some fries instead of the pizza...add a gravy for 30 cents lolol

Costcos in our area no longer have a combo pizza, only pepperoni or cheese. Boo.

I miss the combo pizza 😭

I can easily recoup the executive membership cost per year in my purchases for 2 people, including gas. They send me a check for the savings since I use the credit card and pay it off every month. Works for me!

They have nitrates- which cause cancer

​@@scottpoerschke8807dont sound so hugh and mighty when the only reputable study only suggests that it MAY cause cancer and has had no proof that it does. Fucking internet doctors.

@@scottpoerschke8807- Thesedays just about everything causes cancer even just walking outside.😂

Don't go to a restaurant in Europe, they charge you for room temperature water and often to use the bathroom.

The narrator literally said that the company wasn't losing money and then said "so that's how they are losing money".

​​@@jer280 to the profit goblins, if they aren't making all the possible money, they might as well be making none of it

Your estimates are too high , remember they own and make everything in house from scratch (they also own the pig & cow farms where the meat comes from). A single hot dog bun is pennies , that soda again pennies , the hot dog itself .10 (if that) , condiments yup again pennies considering how little people use. Where the larger cost comes from is staff and electricity , but when you break it down to how much time is spent for one single hot dog it too can't be much, .30 or so.

@@James_Ford4815 Yes Costco now owns the hotdog manufacture and even the farms that produce them. Overall the profit is around 20 to 40 cents per hotdog. They make make a good amount of money from the 150 million combos they sell a year. Even at full blown retail you can nearly break even on the hotdog combo. The most expensive things are the cups, soda for the average person. Even when I order from a restaurant supply company with steep discounts I can make a small profit. Keep in mind the contract that it has though its soda vender and the bulk volume they sell gives them huge discounts along with their own cups which should be heavily discounted as well. Even the retail package of the hotdogs state its the same ones they sell at the food court. The break down price of those minus costco's profit of 50% or more because remember they own the farm so the middle man profits are gone which gives them a huge advantage. The other thing cost co makes huge money on is the rotisserie chickens. Though last I heard they increased the price past the 5 dollars. Either way costco owns the farm that provides them as well. I was able to find the locations of these farms several years ago and they are massive. Costco has been slowly investing its money in its food chain and removing the middle man from the cost which brings their profits up a lot more after they pay for said farm. They also make a bulk of their profit from member fees. Keep in mind that every story that Costco makes about loss leader products means more people are going to spend that money in which they will make more profit. Think about it like this. You are at Costco and you say lets gets a combo because you know its a loss leader and while we are at it lets get a chicken because they lose money on it. We are making a profit by doing it. This mentality is the reason why they sell very well in these products. If costco came out with a new product that was cheap at the food court and make it appear like it was a steal of the century they would do very well.

The equipment and staff wage and business insurance all needed to make that. 40 bun add up way over

gotta stay true to the lore companies that forget this become skinwalkers then eventually the crows will get them

Ok, Obi-Wan! Seriously I still remember going to K-Mart. I remember when it shut down, that building just stayed there for a REALLY long time. Felt like fallout.

Maybe because it closed down yrs ago & there's no need to mention k-mart 🤷‍♂️ moron

I hear your cookings awesome. I haven't had to cook for a girl in a long time... a long time....

You mean s.s. kresge?

I remember in high school we would go to K-Mart and get a 2 liter of Halo 3 branded Game Fuel, and some zebra cakes for lunch.

I miss the polish dog

I alternate between the polish dog and the regular one. I can't tell the difference.

Same here!!

It costs more to buy the equivalent large raw chicken at Costco than to buy it after it has gone through the rotisserie. Those whole raw rotisserie chickens are available in two-packs.

$5 for a prepared hot dog and fountain soda would have been a normal price in 1985. It was more common to have 2 smaller and gross tasting hot dogs and a drink for the price.

@@hewhohasnoidentity4377 $5 in 1985 would be $15 today nobody was buying hotdogs for $5 in 1985

@@hewhohasnoidentity4377 no it wouldn't.

​@@hewhohasnoidentity4377No, it absolutely wasn't. A normal 1985 price would've been approximately half or at most 2/3 of $5. However, $1.50 would've been considered a "reasonable" bargain, but not an outlandish one.

lol this was very bun-ny

Roll-ing over on that one.

underrated

Very good. 😂

😸 I do the bad puns around here…

MISS Hot Dog and FRIES combo like $150 1980. One was enough and HE leased out the bus All went Broke..Take Care

Don't forget eating food in general make it absorb slower, so more beer gets sold.

Mid 1970's corner store sold 4 hotdogs with sauce and onions for $ 1.00

@@carlmorgan8452 In what state?

They certainly have more options, but I just can't stand waiting in line like a bum, that shit is demoralizing

Since when does Sam’s Club sell prepared food? I guess I haven’t been there in a while…

@@Sniperboy5551 if you must be talking about the 90s or something, when I was a kid they were selling food.

@@Sniperboy5551 I worked a couple years in the early 2000s at Sam's Club #6537 in Annapolis, MD. We had a food court with hot dogs and pizza. I worked in the meat dept. Our club was #2 in the nation in rotisserie chicken sales. #1 was Honolulu which sold 4 times what we sold. They were selling somewhere in the neighborhood of 1,200 chickens a day to our 300.

The chicken bake 🥰🥰

Noo 😢

I miss the combo pizza so much, it was so much better than the pepperoni one.

Since costco membership is valid worldwide, I stopped at one when I was in Japan last year. They still have the Combo Pizza, but instead of chicken bakes they have a Beef variant

And the hot turkey provolone sandwich, the new cold turkey mustard sandwich is no where close to the original

This pissed me off so much! BRING BACK THE COMBO PIZZA

Where do you live? In-laws got to see their first Costco by driving 100 miles when it opened in 2013 in Sioux Falls. Before late 2013 I had to drive 90 miles to go to Costco. Glad they put one in my area. I'm 3 miles from the place.

@@petuniasevan In a tiny town, population 500-ish, northeast Missouri. There might be Costco in St. Louis but I rarely if ever go there.

Got a Costco and an Ikea near me, within 10 miles. But lack electronic stores. There were three 5 years ago, two closed and one burned down(sadly, Worst Buy was not the one that burned down). At least it is easier to buy electronic online than most items. But at the same time there are other options, just more expensive, for the other stuff.

Maine just got their first Costco. For people in northern Maine, it's a 4+ hour drive.

@@justanoman6497 "Worst Buy" - love it 🤣

What's a polish dog?

They used to have the polish dogs on an outdoor roll, and pretzels in a lot of the PNW locations (and probably more, that's just all I know about) Sadly, both are gone. While the $1.50 dog is good, it's trash compared to the polish dog

This guy is undoubtedly the best narrator, but the female narrator is getting better. I couldn’t stand her at first, but she’s growing on me.

Single man eh? I know how it is. Since I became a widower, the roll of TP that previously lasted a few days now lasts a few weeks.

I too buy toilet paper on a bi-annual basis. Single dudes rule.

Yeh. Limit of one square, use both sides. And tear of a little corner for cleaning your fingernails.

I remember during the Compact Disc era, Best Buy sold their cds for a loss to get people in the store. Sound strategy (no pun intended)

@@famousashtray They also gave free installs if you bought car audio equipment. I used to get all my car audio stuff there just because of that.

Yep. I never go to Costco just for the food, it's the reward after a $300 shopping trip😂

Individual purchase with god knows how many layers of middle man is not the same as vertically integrated bulk handling. They are not losing a penny as far as the ingredient goes. The real question is the prorated cost of real estate, labor and electricity.

Ketchup is WRONG. If you're over the age of 5, it does not belong on a hot dog. I bet you hate mushrooms too😂😂😂

@@Blitzkrieg1976 NEVER put ketchup on a hot dog, NEVER. Used to put Ketchup on a toasted western or BLT sandwich. Sometimes but not always. Does not mater now as I can not have it. As for mushrooms, I LOVE MUSHROOMS. Fresh sliced or whole, raw or saute. Canned mushrooms from Holland (NOT China) are okay in a pinch. My point is that it is cheaper o but a COSTCO dog than to make one at home.🙂🙂

@@garfieldsmith332 If it's a loaded street dog of sorts and ketchup happens to be one of them, I'm okay with it, but it's not my go to. I much prefer mustard on my dogs, along with kraut, or alternatively, some onions and relish.

@@godaistudios Nothing beats "street dog". Onions, kraut, hot peppers, pickles, and hot mustard for me.

I always will roll my eyes when people comment how little margins restaurants make.

Water is wet and women have secrets.

@@triculious Restaurants make BANK, the servers... [Insert J Jonah Jamason laugh]

Soft drinks have a huge markup at most places even if they're buying from a supermarket instead of buying directly through a Coke or Pepsi distributor.

​@@The18iceman The Last Boy Scout! 😅

Ontario as well.

as long as your a active member.

I am@@sunny-sq6ci

They’re pretty good.

The membership is a scam? 60 bucks a year to not have to be around the trash that you see at Walmart and stores where people act like garbage is a scam? I gladly pay to be around civilized people and low prices of their stuff.

If you go online to Groupon and other aps they often have Costco memberships for 50 to 75 percent off. If you can get them on sale it’s probably worth it otherwise you’re likely correct.

Ehh, they get incredibly small chickens to put in that rotisserie. Sure a chicken might cost you $7.50 at the store uncooked, but it's almost twice the size, and that's retail.

@@jer280 But it's combined with the cost of labor to cook the chickens.

@@Woozlewuzzleable you think the cost of labor to slap 26 chickens at a time into a rotisserie oven is more than $1 per bird? Come on man, you can't be that foolish. They're half the size of regular chickens, and come pre seasoned. You can't honestly think less than 2 minutes per bird is costing them $1. More than that really bc they are paying wholesale for chickens that are at most 60% the weight of one you would pay $8-9 for. It's literally impossible for them to be losing actual money on the product.

In Ontario Canada we still get the Polish sausage but they only have ketchup and mustard. No more hot peppers, pickles, onions, kraut.

We sometimes just go in to the food court and have our cheap food while watching people giddily wheeling out their overloaded carts. Ah, consumerism at its peak!

@@ArtamStudio murica

Have you left your home in the last five years? Actually, that would still be a strong value, have you priced 1/4 pound dogs with drinks? Good luck beating $4.

Also they dont actually lose money, its 0 or few pennies of profit, but not a loss. Owning entire supply chain instead of buying from someone else with markup has its benefits.

Here in Florida we still have polish and condiment stations. Where do you live?

The pandemic killed the condiment station. Ask for the condiments you want when you pick up your food - I just learned this recently and was so happy to get onions again.

😂😂😂😂 pointless comment #10. 🎣🏆

@@Dave-bj3pq When everyone around you leaves you, they are going to talk about how you could not change course even in the face of inevitable failure.

A lot of shop Costco moron.. & your mom isn't a "roommate" 🎣🏆

& there's pointless comment #11

@@Dave-bj3pq When you are on your own, you will be crushed by the weight of the world in about 10 seconds.

It is if you have a small chest freezer.

Whenever a Costco roadshow comes to town you can get some really great deals on items such as computers, appliances, furniture, grills, etc. I got my Kamado Joe Big Joe grill for around $500. That's half the retail cost.

@@stacylgh and a never-ending supply of ziploc freezer bags. I spend the same amount of time divvying Costco meat and bread for freezing as I spend actually buying it.