25 DAYS AGO • 1 MIN READ

Costco loses money on purpose. Do you?

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The Heist

Marketing playbooks for real estate agents, stolen from every industry except this one.

Hi Reader

Costco sells a hot dog and a soda for $1.50. It has since 1985. In that time, a Padres ticket, a gallon of gas, and a movie stub have all roughly tripled. The hot dog hasn't moved a penny.

That's on purpose. It might be the most disciplined marketing decision in American retail.

Here's the story. A few years back, the combo was losing money. Costco's CEO, Craig Jelinek, floated raising the price to founder Jim Sinegal. Sinegal's reply, roughly: "If you raise the price of the hot dog, I will kill you. Figure it out." So they did. Costco built its own hot dog plant and took over the supply chain to protect the $1.50 instead of the margin.

Why fight that hard over a hot dog? Because the hot dog isn't the product. It's the proof. Every member who walks past that food court gets a small, repeated signal: this place will not nickel-and-dime me. One unwavering price builds more trust than any ad Costco could buy. It's a promise you can taste.

The tactic to steal: pick one thing you will never compromise on, and make it loud. Just one signature move that says everything about how you work. Something that earns you nothing directly but makes you the agent people can't forget.

Most agents spread "value" thin across fifty small things nobody remembers. Costco does the opposite: one fixed, no-exceptions promise that people bring up at dinner parties. That's the whole play.

Want the full heist? Acquired's episode on Costco is the definitive teardown of how a $1.50 hot dog became the most disciplined trust-play in retail. Three hours, worth every minute. Save it for your next long drive.

Name your hot dog. Give yourself 10 minutes and finish this sentence: "No matter what, my clients always get ___."

A same-day callback.

A pro photographer on every listing, even the $200K ones.

A handwritten note after every close.

Pick the one thing you'll do every single time, for everyone, no exceptions — then say it out loud: on your site, in your listing presentation, in your bio. The power isn't the thing. It's the always.

And of course I want to hear what it is! Reply and let me know what you land on or if you're already doing this in your business.

We're rooting for you! Have a great weekend.

Alice

P.S. The response to our newsletter announcement was overwhelming. I'm so touched by the kind words, and my mind is racing with all of your suggestions. Our next editions are gonna be amazing thanks to your ideas.


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The Heist

Marketing playbooks for real estate agents, stolen from every industry except this one.