How Costco Makes Money, Despite $1.50 Hot Dog Combos

Key Points The famous $1.50 hot dog combo symbolizes the chain’s low-price strategy to drive traffic. Costco's Kirkland Signature private label gives it cost control and product differentiation. Recurring membership fees are Costco’s profit engine. 10 stocks we like better than Costco Wholesale › Warehouse retailer Costco (NASDAQ: COST) is famous for low prices on bulk products. It doesn't get much cheaper (or bulkier) than the $1.50 hot dog combo, a quarter-pounder plus drink. That's enough bang ...