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The Costco Hot Dog Strategy

Why Costco loses millions on purpose, and how you can use the loss leader strategy in your own life to build unbreakable trust.

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About this video

Why Costco loses millions on purpose, and how you can use the loss leader strategy in your own life to build unbreakable trust.

Full transcript of The Costco Hot Dog Strategy

Costco loses millions on purpose. Every single year. They sell their famous hot dog combo for a buck fifty. The price hasn't changed since nineteen eighty-five. When executives begged the founder to raise the price... ...he famously said: If you raise the hot dog, I will kill you. Why? Because it's a loss leader. It builds unbreakable customer trust. What is your buck fifty hot dog? What immense value are you giving away? Give first. Win the long game.

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