Yeah I think the hot dogs are bascially to cover the cost of the food court since it brings in people. Kind of like Microsfot losing money on Xboxes but making it all on games which you dont buy if you dont get the XBox. Costco model is really working for them well and was proven attractive in this recent market environment.
Water used to be $2.99 for a 36 case and now is $4.25? Box of SKinny Pop bags of popcorn went from $17.99 to 19.99 I think. I assume if Costco's policy is still in place these are all logistics and seller price increases passed on.
The one negative is if costs explode their margins have little room to absorb so sometimes earnings get hurt and the stock drops which is in the past when I have bought COST because COST usually corrects in a quarter or two by finally absorbing hte costs or adjusting pricing.
Sellers used to fight like crazy to get into Walmart but it feels like this is shifting to Costco as the number of brands outside of Kirkland brand is growing every year. For example in clothing there is now Champion and Addidas. Granted this must be made for Costco product lines but it is really cheap. The really ridiculuos is I saw a $25,000 diamond tennis bracelet in Costco...... yeah I am not buying jewelry in Costco but damn...
