When you get used to shopping at Costco regularly, you actively make the choice to maintain a membership. For most people, that $65 or $130 fee more than pays for itself, though, in the form of savings during the year.
But a Costco membership doesn’t just buy you access to a gigantic store full of inventory. It also buys you access to an experience you may not find at other stores.
Costco doesn’t just try to aim for the lowest prices. It also aims to make members feel valued, whether by frequently introducing new perks or maintaining its extremely flexible return policy.
Some of Costco’s best deals are also designed with member retention in mind. And there’s perhaps no better deal than the $1.50 hot dog and soda combo.
That deal has been around for more than 40 years. And in a viral video, Costco CEO Ron Vachris confirmed that it’s also not going anywhere anytime soon.
Costco CEO doubles down on hot dog meal value
In a social media video that’s taken the internet by storm, Vachris didn’t just talk about how incredible the hot dog deal is. He experienced it himself.
Sitting down to enjoy one of Costco’s famous hot dogs, he reassured members that the deal isn’t going anywhere.
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“The hot dog price will not change as long as I’m around,” he said, calling it “amazing quality, amazing value.” Vachris also called the deal “$1.50 well spent.”
That may sound like a gimmick, but it’s part of a much bigger philosophy.
Costco has held that $1.50 price steady since the 1980s, even though inflation alone would justify a much higher price today.
For members, that meal is more than just a cheap lunch. It’s a commitment on Costco’s part to delivering standout value, even when it’s not the most profitable move.
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Costco’s member-first mindset
Holding the $1.50 price point steady on the hot dog meal isn’t the only example of Costco’s commitment to a great member experience. The company is investing in ways to make members happier.
During Costco’s most recent earnings call, CEO Ron Vachris highlighted many ways the company is working to improve. In the context of tariffs, he said, “Throughout the past year, we have taken action to reduce the impact of tariffs; in many cases, we did not pass the full cost on to our members.”
Vachris also pointed out ways the company is trying to streamline the checkout experience — an often painful component of shopping at Costco, especially during peak periods.
“We are also piloting automated pay stations that will allow members to pay for their pre-scan orders seamlessly with an average transaction time of around eight seconds. Early results show this is improving the flow of traffic,” he said.
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All told, Vachris’s message is a positive one for current and prospective Costco members alike. The company is committed to a great experience and continued value, whether it’s less expensive toilet paper or a hot dog combo price that’s hard to beat.
At a time when consumers are increasingly scrutinizing every dollar they spend, that commitment could be one of Costco’s biggest competitive advantages at a time when retailers are fighting for business.
Maurie Backman owns shares of Costco.
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