After all the stress that holiday season involved, you deserve a break. Buying a rotisserie chicken at Costco, to help you ease up on your household chores is a great option. But why can you be sure that this meal at Costco will always be a cheap option?
Have you ever wondered why some food at Costco, like their pizza or hot dog, for example, is ridiculously cheap? Read on to find out the secret behind one of these generous offers.
It wouldn't be surprising if many people pay for Costco membership just to enjoy the dishes the chain sells in their food court, as many of them are so popular that they have a legion of fans who consume them every week.
One of the most sold items at Costco is its rotisserie chicken and will always be a safe option if you are on a budget. This is because this product does not make a profit for the company and, on the contrary, brings it losses. Why has Costco chosen to keep things this way for years?
According to Reader’s Digest, the $ 4.99 rotisserie chicken is among the favorites of Costco repeat customers. This is because they are priced lower than most places and also because they weigh at least three pounds, while their competitors weigh, on average, a pound and a half or two.
This is why the chain of membership-only warehouse clubs sells approximately 60 million chickens throughout the year.
But the company doesn’t make a huge fortune selling this meal, the truth is that it loses money every time it sells one of these popular chickens. In fact, it is estimated that Costco loses between $ 30 and $ 40 million a year selling them.
So why is the company refusing to price them up and still giving them $ 4.99?
The reason is that, by selling them at such a low price, they make customers go to the store more often to buy them, and by doing this, they also manage to increase the sales of other products.
For this reason, Cost considers that the losses that the sale of chickens brings are worthwhile since they are a factor that promotes greater traffic of people to its branches.