However, there are still a few things that cost the same as they always have.
The signature 23-ounce can of Arizona iced tea is still 99 cents, the same price since it debuted 30 years ago.
“I’m committed to that 99-cent price — when things go against you, you tighten your belt,” Don Vultaggio, the company’s 70-year-old founder, told the newspaper. His reasoning: raising prices and losing customers as a result is simply not worth the short-term profit.
Arizona — which got its start in Brooklyn — keeps costs down by spending less on marketing than other beverage brands and makes most of its profits by selling higher-priced fruit drinks, energy drinks, bottled teas, snack foods, hard seltzer and other products .
Costco’s $1.50 hot dog and soda combo
The hot dog offering emerged in the early days of the company. Costco added a Hebrew National booth at its second warehouse in Portland, Oregon, shortly after it opened in 1983.
To keep the hot dog’s price stable, Costco has found ways to reduce other costs in the food court, such as:
Last year, Costco sold 122 million hot dog and soda combos worldwide.
Costco, Sam’s Club and BJ’s Fried Chicken
There is a strategy behind these stores’ decision to keep these prices constant.
The fried chicken is a popular product for supermarkets because it attracts customers to the stores. Customers typically buy more than one chicken in one visit. Because of this, retailers want to remain competitive on fried chicken prices and are willing to lose money on sales, even if production costs increase.
Additionally, shoppers know exactly how much their fried chicken costs and they will see an increase. The price of a fried chicken helps determine the consumer’s overall perception of the value of a deal.
Even though BJ’s fried chicken production costs have skyrocketed, the company has kept prices firm because it’s “such a meaningful cause for our members,” CEO Bob Eddy said at an earnings call in May.
The retailer is facing a lawsuit from two shareholders alleging that Costco and its top executives allowed the abuse of chickens in violation of animal welfare laws.