For years, Costco members have marveled at the fact that the retailer’s hot dog and soda combo remains stubbornly stuck at a price of $1.50. That’s the same cost as when the combo first was introduced in 1985.
The internet has been rife with speculation about how long the $1.50 price point might remain in place, especially amid continued high inflation. Now, we have our answer: a mighty long time.
On a Sept. 22 earnings call, Richard Galanti, Costco’s chief financial officer, said the retailer plans to “hold the price on the hot dog and the soda a little longer, forever.”
That news is likely music to the ears of Costco members who love getting a cheap meal at the food court either before or after doing their shopping.
However, before you get too excited, there is one area where Costco does indeed plan to raise costs — its membership fee.
On the same earnings call, Galanti acknowledged that at some point, Costco will raise the fee. He didn’t nail down an exact time, but did say the following:
“Certainly, as we’ve increased members’ fees historically about every five, five and a half years, we’ve turned around and used it to drive more value. And whenever we do it, we’ll do that. I think at the end of the day, it’s — and I also want to point out, of course, if you look at the last three increases, on average, they were five years and seven months apart. If you look at June of ’17, plus five years and seven months, you’re talking roughly January ’23.”
Galanti emphasized that he’s “not suggesting” a membership fee increase will happen in January. But he did say that higher fees are coming eventually.
As he put it, “it’s a question of when, not if.”
Before you head out on your next Costco run, check out “11 Ways to Save Even More Money at Costco.”
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