Oh No You Didn’t, Sam’s Club! Costco, Your Move

    This isn’t McDonald’s going against Burger King, and it is not Chick-fil-A going up against Kentucky Fried. This food war is not between fast food joints at all. This time the war is over whiners is being sold by Sam’s Club and Costco.

    On November 15, Sam’s Club announced that it was lowering the price of its hot dog-and-soda combo from $1.50 to $1.38. Walmart, who owns Sam’s Club, declared the big change during a third-quarter earnings call. 

    “The members’ dollars are going further at Sam’s Club, too … we’re also making the everyday shopping trip better by lowering the price of the cafe hotdog combo by nearly 10% to $1.38,” said Walmart CEO Doug McMillon.

    When they put this news on the Sam’s Club website, it could be seen that they were using fightin’ words.

    “Frankly, it can’t be beat,” reads the ad that appears on Sam’s Club website. “New lower price. Same great hot dog and drink combo, And the free refills are still flowin’.”

    The fighting match with Costco has been real. They have offered a similar deal that is extremely popular. Their price has been $1.50 since the mid-80s. 

    Costco CEO Craig Jelinek recently confirmed that there were no plans to raise the price, ever. The co-founder of Costco, Jim Sinegal, once treated to kill Jelinek if he ever raise the price of the Weiner deal.

    Costco will have trouble keeping up with the low prices at Sam’s Club. The Club has also announced that it will keep inflation away from their Thanksgiving stables, and they have 40% lower prices year over year on lobster tails and racks of lamb.

     Costco may have some slashing to do if they want to catch up to Sam’s Club, which already offers lower prices for its membership than Costco does. Sam’s Club also announced, like a few other major grocers, that it’s keeping inflation away from the prices on Thanksgiving staples, as well as 40% lower prices year over year on lobster tails and racks of lamb.

    Why did Sam’s Club lower their hot dog deal by 12 cents?

    “A dime and two pennies might not seem like much and we tend to agree — when it comes to one transaction on one hotdog combo,” reads a post titled, “It’s 12 cents. So what?!” on the Sam’s Club website. “But there’s a bigger story at play here. This is a signal. It’s indicative of the journey we’re on — to make the Sam’s Club membership the most valuable subscription you have. And in this case, that means working it twelve cents at a time.”

    You move, Costco.



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