How Costco Makes Money, Despite $1.50 Hot Dog Combos

Warehouse retailer Costco (NASDAQ: COST) is famous for low prices on bulk products. It doesn't get much cheaper (or bulkier) than the $1.50 hot dog combo, a quarter-pounder plus drink. That's enough bang for your buck to suspect the obvious--that Costco is losing a ton of money on dogs.However, the $1.50 hot dog combo isn't a loss leader; it's the canary in the coal mine, a perfect symbol of the entire Costco business model. If it disappeared, I'd be worried. Here's how Costco makes money, starting with the dogs.Shopping at Costco.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool