Costco’s $1.50 hot dogs are safe. But what about membership fees?

Costco is known for its amazing prices. But if you’ve been to the store recently, you’ve probably noticed that the prices you see are higher now than they were a few years ago.

Unfortunately, it’s part of a general trend. Over the past three years or so, stubbornly high inflation has caused the cost of living to rise across the board. So you may be paying more for everyday expenses like groceries and utilities now than you did not long ago. And honestly, it’s disappointing.

But one thing you habit One thing you’ll be paying more for in the near future is Costco’s famous $1.50 hot dog and soda combo. There have been rumors that Costco is looking to raise combo prices for the first time since they launched in 1985, but on the company’s most recent earnings call, new CFO Gary Millerchip confirmed that the $1.50 price point that customers love is here to stay . stay.

However, there is also talk that membership fees will increase. So you might also be interested in what Millerchip has to say about it.

The hot dog deal is still going on.

A CNN analysis found that if Costco adjusted the price of a hot dog and soda combo to current dollars, customers would pay about $4.50. Instead, Costco has maintained its price of $1.50 for nearly 40 years.

Costco’s intention is not to make money from the hot dog deal. Rather, you lose money there. But if this combination wins over shoppers, the company ultimately wins.

Think about it. It might be okay for Costco to charge you $4.50 for a hot dog and soda, but let’s say you can get it for $1.50. Then you go to the store and spend $200 on store merchandise and Costco wins. So Costco is willing to let you keep your $3 and pay less at the food court.

Recently, rumors began to circulate that Costco had raised the prices of hot dogs. But Miller Chip said on May 30, “To dispel recent media speculation, we want to make sure the $1.50 hot dog price is safe.”

Is the Costco franchise fee safe?

Costco has historically raised membership fees approximately every five years. At this point we are well past that point. The last time Costco raised membership fees was in June 2017.

At this point, a Costco membership fee hike could put cash-strapped consumers in a bind because existing costs have become so out of hand. But the good news is that Costco doesn’t plan on raising membership costs any time soon. It currently costs $60 per year for a basic membership and $120 per year for an Executive membership that gives you 2% cash back on purchases.

“We think our membership renewal rates are really good,” Millerchip said. “We feel really good about testing whether we are providing significantly more value to our members than before after raising our membership fees…but we are still taking these considerations to determine when the right time is. “We’re evaluating it, and when we get to a point where we think the time is right, we’ll communicate that very openly and directly.”

That said, a Costco fee increase isn’t impossible. But those obviously aren’t going to happen anytime soon.

Just because Costco membership costs aren’t going up doesn’t automatically mean you have to keep paying the $60 or $120 annual fee. If you visit Costco less often or your circumstances have changed in a way that makes Costco less convenient (for example, you moved away or you no longer own a car), you may want to reconsider your membership. .

But if you plan on continuing to shop at Costco, you can rest assured that you won’t have to pay more for your hot dogs. or Check back for your membership in the near future.

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