Costco's hot dog has remained $1.50 since it was first introduced in 1984. After the company president complained they were losing money on it, CEO Jim Sinegal put his foot down. "If you raise [the price of] the effing hot dog, I will kill you," Sinegal said.

Costco’s $1.50 offer is a strategic decision, known as a “decoy”: The company is willing to lose money selling hot dogs at that price, inflation be damned, as long as it helps Costco attract and retain customers. “It’s a brand,” said Scott Mushkin, a retail analyst at R5 Capital. “The $1.50 offer helps build customer loyalty,” he said. “It reminds customers who Costco is.”

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