Discount War: Sam’s Club Makes Its Hot Dog Combo Even Cheaper Than Costo’s

Q: Why did Sam’s Club lower the price of its hot dog combo?

Sam’s Club reduced the price to $1.38 as a member-friendly move and likely a competitive gesture toward Costco, aiming to attract customers and generate goodwill.

Q: How much is the Sam’s Club hot dog combo now?

The Sam’s Club hot dog and fountain drink combo was cut by 12 cents, bringing the price to $1.38.

Q: Is the Sam’s Club hot dog cheaper than Costco’s?

Yes. Costco has historically kept its combo at $1.50, while Sam’s Club lowered its price to $1.38, making it the cheaper option.

Q: Will rising meat costs affect these hot dog prices?

Despite meat price increases, both warehouse clubs have maintained low-priced combos as loss leaders to draw members into stores, though prices could change if costs rise significantly.

Q: Is the Sam’s Club hot dog price cut permanent?

The announcement presented it as a member-focused price change, but retailers can adjust pricing over time; there’s no guaranteed permanence stated in the press release.

Published by

Clara

Jan 1

Sam’s Club Hot Dog Price Cut — New $1.38 Combo

This is on. A hot dog rivalry.

Apparently, in the U.S. we’re in the middle of a major warehouse-club frankfurter confrontation. Who would’ve predicted that?

In a cheeky — and honestly amusing — bit of corporate provocation, Sam’s Club is trimming the price of its $1.50 hot dog combo by 12 cents, bringing it down to $1.38. That gets you a hot dog and a fountain drink.

Sound trivial?

We think this is Sam’s Club’s deliberate jab at its competitor, Costco, which has long maintained its own $1.50 hot dog-and-drink deal. Costco takes pride in that bargain combo, a staple price that’s been unchanged since 1985.

Costco CEO W. Craig Jelinek once told a Chamber of Commerce audience that preserving the $1.50 price was hugely important — almost existential.

“I went to (Costco co-founder Jim Sinegal) once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’ And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out.’ ”

(Reddit users quickly whipped up T-shirt concepts and logos featuring that “I will kill you” line. Apparently it’s become a bit legendary.)

This is a photo of a Sam's Club hot dog and soft drink. — (*Sam’s Club reduced the price of their hot dog-and-soda combo from $1.50 to $1.38. Photo courtesy of Sam’s Club*)

Now Sam’s Club has come along and stirred the pot — unilaterally cutting the price of its $1.50 combo by a full 12 cents, with no permission asked! Those audacious folks at Sam’s Club, huh?

They even issued a seemingly innocent press release, all coy, saying, “Reducing the price by twelve cents on a member-favorite item is another way to demonstrate we care about every penny (literally) they spend with us.”

Sure. And maybe it’s a little poke at Costco, too.

Sam’s Club and Costco are the two dominant membership-based warehouse retailers in America, and for years they’ve dangled inexpensive hot dogs as a perk for members. Rising costs haven’t derailed that tactic, despite frankfurter prices climbing about 15% in just one year.

Those hot dog deals are classic loss leaders — meant to lure shoppers to linger longer in the store. You grab a cheap snack, spend more time roaming the vast discount aisles, and the odds increase that you’ll spot something you can’t resist and make an unplanned purchase.

So go ahead. Savor that $1.50 (or $1.38) frankfurter with a soda. Pretty satisfying, right?

Just keep in mind why it exists.

Jordan Hale (jordan.hale@savinly.com) is a senior writer at Savinly.