Costco Founder Once Threatened CEO Over Proposed Price Hike Of Its $1.50 Hotdogs

Costco Founder Once Threatened CEO Over Proposed Price Hike Of Its $1.50 Hotdogs


February 27, 2023 | Eul Basa

Costco Founder Once Threatened CEO Over Proposed Price Hike Of Its $1.50 Hotdogs


In this capitalist society, it's hard to believe that companies actually have our best interests in mind. But contrary to popular belief, not all of them are really "out to get us."

Just take Costco for example—the big box retailer, which has served the public for decades, prides itself for putting its customers first; focusing on their needs above all else (including profits). Perhaps its greatest testament to that mindset is its staple hot dog and soda combo, which has remained priced at $1.50 ever since it was introduced back in 1985.

Jim Sinegal, the founder and former CEO of Costco, has stood by that price for years and will apparently fight 'til his dying breath to keep it that way. He made that clear in 2012 when he was replaced by Craig Jelinek, a former Costco warehouse manager. In one of his first proposals as the new head honcho, Jelinek proposed hiking the price of the combo by 25 cents or possibly more.

Considering that Costo never priced its hot dogs based on what the market will bear, the idea seemed absolutely preposterous to Sinegal. After 35 years of leadership, Sinegal had never once thought to raise the combo's price. Besides, if it works, why change it?

According to reports from 2018, Jelinek ultimately threw out that idea because he received some pretty intense words from Sinegal himself: "If you raise the [price of the] effing hot dog, I will kill you. Figure it out."

Mental Floss's Jake Rossen said it best when he described the significance of the $1.50:

"Is that extra 25 cents going to be more valuable than the goodwill and foot traffic generated by a combo that's stuck to its price point for nearly 35 years? Probably not. Customers coming in to shop at Costco are amused, satisfied, and fueled by the hot dog meal. If they get it just before leaving the store, they're left with a lasting impression of being treated well. That's worth more than keeping up with inflation."

Needless to say, when Sinegal told Jelinek to "figure it out," he said it from his gut.

Fortunately for Sinegal, Jelinek is not one to take criticisms like that lightly. After Sinegal threatened him, he said that was all he really needed to hear to come up with a better solution.

"By having the discipline to say, 'You are not going to be able to raise your price. You have to figure it out,' we took it over and started manufacturing our hot dogs," he said. "We keep it at $1.50 and make enough money to get a fair return."


READ MORE

Investment - Fb

I invested $8,000 in my friend’s “luxury candle business.” Now she’s ghosted me and posting vacations on Instagram. What are my options?

A friend launches a small business, and you decide to help because the idea sounds promising and the friendship feels strong. You hand over money with the hope that the business will grow, and you trust the person behind it even more than the plan. Then the updates slow down, while your friend seems to vanish from every conversation that involves the investment. Meanwhile, her social media shows sunny beach photos and pricey resorts that feel wildly out of sync with the story you were told. Well, that’s an uncomfortable place to stand. Luckily, there are practical paths forward; each one starts with understanding your true position.
January 7, 2026 Marlon Wright

My elderly mom’s basement tenant told neighbors he owns her house. He’s made unauthorized changes to the suite. Should I be concerned?

When a tenant begins telling neighbors that he is the building owner, the real owner needs to step in and set the record straight to prevent confusion.
January 7, 2026 Sammy Tran

A collection agency called me about my deceased dad’s credit card debt. I blocked them, but now I get calls from multiple numbers. What do I do?

If collection agencies are demanding that you pay back the debt of a deceased relatives, you need to know your rights before you do anything else.
January 7, 2026 Alex Summers

I told a coworker I got a 10% raise, now my manager is complaining to me that everyone else is demanding a raise as well. Should I have kept quiet?

Letting it slip to a coworker that you got a big raise could backfire on you in more ways than one.
January 6, 2026 Miles Rook

We're getting ready to sell our home, but my in-laws said the outdated kitchen will scare off buyers. Do we really need to renovate before selling?

You're looking to sell your home, but the kitchen and some of the other rooms are looking dated. Does it make sense to renovate before putting the house on the market?
January 6, 2026 Sasha Wren

A woman bought a damaged statue for under $100 in 1999—20 years later it was valued $100,000. So why did it sell for millions at auction?

In the late 1990s, a woman browsing a garage sale in Kirkwood, Missouri, noticed a small bronze statue sitting among everyday household items. It was dusty, visibly worn, and missing part of an arm. Nothing about it screamed valuable—but something about it made her stop and look again.
January 7, 2026 Jesse Singer


Disclaimer

The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.





Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team