The secret behind Costco’s cheap chicken & hot dogs

rotisserie-chicken-99664_1920Costco stores aren’t as conveniently located as your neighborhood supermarket, so they use super cheap ready-to-eat food to get you in more often. They also have super low prices for milk and gas because people need those things about weekly.

Costco’s secret strategy for keeping store traffic really high is  bargain prices on hot dogs ($1.50), rotisserie chickens  ($4.99), milk, and gas. These deals also help shoppers feel good about the cost of their annual memberships. And those fees are the biggest contributor of profit and cash to the company. Furthermore, while a hungry shopper feeds themselves or the family with cheap eats after work, they just might be enticed to buying a new TV, massage chair, kitchen appliances, or any number of other exciting items Costco places around the store in a “treasure hunt” fashion.

This is the secret reason Costco’s hot food are so cheap, and why they’ll remain cheap long into the future.

Our workshop and coaching clients know that we talk about Costco frequently for its innovative business model and the impact on cash decisions, but also for people decisions based on it’s staff recruiting and management practices. Costco even has lessons for smart entrepreneurs in strategy and execution.

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Read further on Costco’s chickens and hot dogs on MSN here.


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