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Yet, Costco still sells $1.50 hotdogs and drinks. Just because you have a duty to shareholders doesn't mean you have to run your business into the ground seekin
by shiftpgdn 4y ago
Yet, Costco still sells $1.50 hotdogs and drinks. Just because you have a duty to shareholders doesn't mean you have to run your business into the ground seeking quarter over quarter profits.
- saurik 4y agoThey don't do this as charity, though: they do this because customer disgust with being nickle and dimed over a hotdog, and thereby the resultant lost sales from their actual warehouse, will do more harm to shareholder profits than they would gain back on selling more expensive hot dogs (and maybe, just maybe, the hotdogs were always a loss leader anyway, to make the trip to Costco to buy hundreds of dollars of groceries more enjoyable to begin with).
- bombcar 4y agoThey also change things, I notice they don't have the polish sausage anymore, the dog buns are different, etc.
- meristem 4y agoHotdogs and drinks are probably a loss leader for Costco. What Apple product would you suggest they sell below cost as an enticement to people to make other Apple purchases?
- bombcar 4y agoMost of the Apple subscription services (Music, iCloud, etc) would be a perfect choice there.