They say the best way to a man’s heart is through his stomach.
If you’ve ever surprised your partner with a pizza, you’ll know that this is true for all sexes.
Food is vital. Food is love. And free food?
Free food is a money-maker.
That’s why Ikea sells meatballs at a loss, and Costco has been selling a $1.50 hotdog (with a free drink) for 35 years.
Those meaty treats are so important that companies are willing to lose money on every sale.
When inflation irradicated the margin on their saucy schlongs, the Costco executive team suggested increasing the price to $1.75.
Jim Sinegal, CEO at the time, had a terrifying response: “If you raise the price of the effing hot dog, I will kill you. Figure it out.”
And they did.
$2 might not be much to pay for a hot dog.
But going the extra effort to do something special and sell it at $1.50 is what sets a business apart — and keeps people coming back.