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> I came to (Jim Sinegal) once and I said, 'Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends.' I wonder how much it actually affec
by klmadfejno 6y ago
> I came to (Jim Sinegal) once and I said, 'Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends.'
I wonder how much it actually affected their bottom line
- Aeolun 6y agoGiven how much they get in profit off an average shopper, I cannot imagine it did (at least not if 25c extra could fix it).
- lotsofpulp 6y agoCostco earns ~2.4% profit, or $4.3B over 105M members, which is ~$40 per member. They barely make the cost of a membership in profit, if that.
- Justin_K 6y agoTheir profit is the membership fee.
- lotsofpulp 6y agoIt’s less than the membership fee, so my point is that losing 25 cents on each hot dog is a big deal.
- AnimalMuppet 6y agoBut, see, they could lose more by not losing 25 cents on each hot dog. The real question is, if they raised the price of hot dogs, would they make less money, or more? They think the answer is "less". I'm not prepared to say that they're wrong...