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In an effort to beat Costco’s prices, US wholesale chain Sam’s Club decided to lower the cost of the hot dog and drink combos to just $1.38.
Last November, Sam’s Club had declared war on Costco by driving prices up to $1.50, at the time the membership grocery chain noted on its website that the “new lowest price. Same great hot dog and drink combo. Frankly, you can’t beat it”, said.
According to Sam’s Club CEO Kath McLay, this strategy of offering better and better deals than Costco, He managed to increase sales in the following months and generated notable profits.
For his part, Walmart CEO Doug McMillon said, “Members’ dollars also go further at Sam’s Club, with racks of lamb and lobster tails priced at more than 40% lower than the last year,” he said.
Since 1980
Since Costco’s offering of hot dogs and sodas were introduced in the mid-1980s, their price has remained unchanged from $1.50 and now with the new play of Sam’s Club lowering the costs you can start making losses.
By 2022, Costco was able to sell more than 122 million hot dog and soda combos worldwide at the same cost, which is a strategy designed for shoppers who tend to spend more time in the store, with the possibility that the low price will attract them and they will spend more.
Although the price of frankfurters rose 15.2% annually in October of last year, for Sam’s Club and Costco It doesn’t make much weight and they continue to offer their customers cheap hot dog combos as an added benefit.
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