The $1.50 Hot Dog Strategy: When Losing Money is the Most Profitable Move

Thu, 25 Dec 2025 00:00:00 +0000

The Famous Threat

In 2009, Costco’s then-CEO came to the founder, Jim Sinegal, and said, “Jim, we can’t sell this hot dog for $1.50 anymore. We are losing our shirts.” Sinegal replied with the now-famous line: “If you raise the effing hot dog, I will kill you. Figure it out.”

So, they built their own hot dog factories just to keep the price down. They refused to break the $1.50 price point.

Costco on My New Hugo Project

The $1.50 Hot Dog Strategy: When Losing Money is the Most Profitable Move

The Famous Threat