For years, Costco members have marveled that the retailer’s hot dog and soda combo remains stubbornly stuck at a $1.50 price tag. This is the same cost as when the combo was first introduced in 1985.
The internet has been plagued with speculation about how long the price of $1.50 might stay in place, especially amid continued high inflation. Now we have our answer: a very long time.
In a Sept. 22 earnings call, Costco chief financial officer Richard Galanti said the retailer plans to “hold the price of hot dogs and soda a little longer, forever.”
This news is likely music to the ears of Costco members who like to grab a cheap meal at the food court before or after shopping.
However, before you get too excited, there’s one area where Costco does plan to raise costs: its membership fees.
On the same earnings call, Galanti acknowledged that at some point Costco would raise the fees. He did not set an exact time, but said the following:
“Certainly, as we have historically increased membership dues approximately every five, five and a half years, we have flip-flopped and used it to generate more value. And every time we do, we will. 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’ve been five years and seven months apart. If you look at June 2017, plus five years and seven months, you’re roughly talking about January 23.
Galanti stressed that he “is not suggesting” that a membership fee increase will take place in January. But he said higher fees would eventually arrive.
As he said, “It’s a matter of when, not if.”
Before heading out to your next Costco errand, check out “11 Ways to Save Even More Money at Costco.”