Look out, Costco. Sam's Club drops its hot dog combo to $1.38 | CNN Business

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There's a retail price war on hot dog and soda combos.

There’s a retail price war on hot dog and soda combos. Sam’s Club has lowered the price of its hot dog and drink deal at its food courts to $1.38 from $1.50. Its chief rival, Costco\n \n , offers the same combo for $1.50. “New lower price. Same great hot dog & drink combo,” Sam’s Club said in an advertisement on its website. “Frankly, it can’t be beat.” Sam’s Club, owned by Walmart\n \n , announced the move Tuesday.

50 since it was introduced at its food courts in the mid-1980s. Last year, Costco sold 122 million hot dog-soda combos globally. Jim Sinegal, Costco’s co-founder, once told the company’s current CEO, Craig Jelinek, “If you raise the effing hot dog, I will kill you. Figure it out.” Hot dog combos priced at $1.50 are often a loss leader for the companies, especially as costs rise, but it’s a strategy designed to get customers to stay in stores longer.

 

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