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

Woman at Grocery Store checkout

Why does my bank keep giving me $50s and $100s when stores won’t even take them? What am I supposed to do?

Every time you go to the bank, you walk out with crisp $50s or $100s. Then you try to use one at a store, and suddenly it’s a problem. “Sorry, we don’t take big bills.” If they’re real money… why won’t anyone take them? And if no one will, why does the bank keep giving them to me?
March 3, 2026 Jesse Singer

My company raised starting pay for new hires. With the last minimum wage hike, they make almost as much as I do after years on the job. What can I do?

With your company raising starting rates and minimum wage hike, your experience doesn't earn you much more than a new hire. What's going on here?
March 3, 2026 Marlon Wright

Popular Money Habits That Are Quietly Getting People Flagged By Banks

Some of people's most common financial habits will draw increased scrutiny from banks.
March 2, 2026 Jane O'Shea
Worried tired freelance businessman

My car loan is $700/month and I earn $3K. Should I trade down or take on a second job?

There’s no soft way to say it—$700 on a $3,000 monthly income is heavy. That’s nearly a quarter of your gross pay, and if that $3K is before taxes, the slice of take-home pay is even bigger. Once you factor in insurance, gas, and maintenance, your car could easily be absorbing 30–35% of what actually hits your bank account each month.
March 2, 2026 J. Clarke
Desk Job

The desk job isn't looking so safe anymore, and the trades are filling the gap

Something is quietly shifting in the American workforce. Professionals who spent years in offices are trading keyboards for tool belts, and the numbers behind that decision are more serious than most people realize.
March 2, 2026 Jane O'Shea

My child's orthodontist prescribed "clarinet lessons" to help with overbite. Can I really deduct these from my taxes?

Can you deduct clarinet lessons if your child’s orthodontist prescribed them for an overbite? Here’s what the IRS really says about medical expense deductions, quirky treatments, and how to stay out of audit trouble.
March 2, 2026 Jack Hawkins


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