This is just a marketing trick and an age old one. Costco isn’t losing any money and it doesn’t speak to the CEOs principles. It might speak (favorably) to his competence as a CEO.
The very fact that this ad was posted here are we are all discussing it mean it is also highly successful champaign. Costco markets itself as being the good guy and this plays into that persona.
I’m not saying any of this is a bad thing but see it for what it is, a shrewd marketing tactic, after all Costco isn’t curing cancer or saving the rainforests, its a corporation and its generating profit for its shareholders, nothing more.
Getting consumers to organically discuss its products and services online for free and in a favorable light is worth much to Costco than any paper loss on a hot dog sale.
It will be a sad day when they pass. The next in line almost never carries the same principles, they need to “prove themselves” and ruin so much for the customer in the name of profit :(
Costco loses a good amount of money on the food. The CEO has principles.
The food court and samples is a loss leader, also it anchors people to the perception that Costco is cheap.
They loose money on the hotdog, but gain money on the foot traffic. It’s good for business at the end of the day.
Lose. They lose money.
No, no, you misunderstand, see: they spend all their lose change and while that causes them to loose money on the food, they gain in the long run.
Ahhh. This is what an aneurysm feels like.
This is just a marketing trick and an age old one. Costco isn’t losing any money and it doesn’t speak to the CEOs principles. It might speak (favorably) to his competence as a CEO.
The very fact that this ad was posted here are we are all discussing it mean it is also highly successful champaign. Costco markets itself as being the good guy and this plays into that persona.
I’m not saying any of this is a bad thing but see it for what it is, a shrewd marketing tactic, after all Costco isn’t curing cancer or saving the rainforests, its a corporation and its generating profit for its shareholders, nothing more.
Getting consumers to organically discuss its products and services online for free and in a favorable light is worth much to Costco than any paper loss on a hot dog sale.
It will be a sad day when they pass. The next in line almost never carries the same principles, they need to “prove themselves” and ruin so much for the customer in the name of profit :(
Loses.