May 7, 2018

Costco charges only $4.99 for a rotisserie chicken - WHY?

Costco employee chickenPaul Sakuma/AP Images

 

Costco's rotisserie chickens have cost $4.99 since 2009. Costco's management says it's happy to eat the cost to keep prices down for customers. But there's a clever business strategy behind the decision.

Costco would rather take a hit to its profits than raise the price of its $4.99 rotisserie chicken — but it isn't a terrible business decision.

The rotisserie-chicken boom started in the 1990s and hasn't slowed. Last year, consumers bought 625 million rotisserie chickens in US supermarkets, according to Costco and the market-research firm Nielsen. Costco sold 87 million in fiscal 2017, an increase of 36 million over fiscal 2010.

See the rest of the story at Business Insider

 

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