Why would a $1.50 Costco hot dog combo and 99 cents Arizona iced tea still cost the same

However, there are still some things that always cost the same.

A signature 23-ounce can of Arizona iced tea still costs 99 cents, the same price it has been since it debuted 30 years ago.

The family-owned company sells about 1 billion of its 99-cent Big AZ Can, as it’s internally called, every year, Los Angeles Times mentioned in April.

“I’m sticking with that price of 99 cents — when things go against you, you tighten your belt,” Don Voltaggio, the company’s 70-year-old founder, told the newspaper. His logic: Raising prices and losing customers as a result isn’t just worth the short-term profit.

Arizona—which started in Brooklyn—keeps costs down by spending less on marketing than other beverage brands and makes most of its profits by selling fruit drinks, energy drinks, bottled tea, snacks, and other products.

Costco Hot Dog-Soda Combo $1.50

costco Hot dog-soda deal in the food court It has cost $1.50 since its introduction in the mid-1980s.

Sausage Show was born in the company’s early days. Costco added a national Hebrew wing at its second warehouse in Portland, Oregon, shortly after it opened in 1983.

To keep the price of hot dogs steady, Costco has found ways to cut other costs in the food court, such as switching from 12-ounce cans of soda to cheaper 20-ounce fountain drinks.

costco (cost) He sold kosher hot dogs in his food courts until 2009, but suppliers are starting to run out of meat. So the chain brought production in-house and turned into its own Kirkland brand hot dog. Costco now produces about 285 million Hot dogs at their factory in California.
Jim Sinegal, Co-Founder of Costco, Once Tell the company’s current CEO, Craig Jelinek“If you raise a hot dog, I will kill you. Find out.”
senegal told Seattle Times in 2009. “We’re known for this sausage. This is something you don’t mess with.”

Last year, Costco sold 122 million hot dog-soda sets globally.

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Costco, Sam’s Club and BJ’s rotisserie chicken

Despite a 16.4% year-on-year increase in chicken prices, wholesale Clubs and other grocery stores Keep grilled chicken prices low.
$4.99 at Costco remains the same as it has been for over a decade, as well as at bj wholesale club (BJ). At Sam’s Club, they cost a penny less than that for over five years.

There is a strategy behind the decision of these stores to keep these prices constant.

Roast chicken is a valuable item for supermarkets as it attracts customers to the stores. Usually, customers will shop and buy more than just a chicken when they visit. That’s why retailers want to stay competitive on grilled chicken prices and are willing to lose money selling it even as production costs rise.

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Moreover, shoppers know exactly how much grilled chicken costs, and they will notice an increase. The price of roast chicken helps determine consumers’ public perception of store value.

Despite rising production costs for BJ’s roast chicken, the company maintained pricing because it is “meaningful to our members,” CEO Bob Eddy said in an earnings call in May.

However, the lengths Costco goes to keep their chicken is $4.99 Under the microscope.

The retailer is facing a lawsuit from two shareholders alleging that Costco and its top executives allow chickens to be abused in violation of animal welfare laws.

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