If you’re food deal junkie, here’s an interesting business note…
Mega retailer Costco has steadfastly kept the price of its famous hot dog + soda combo deal at $1.50 since its introduction in 1985.
So as of today, that’s a full 34 years without a price increase.
They follow a similar cost-savings strategy with their rotisserie chicken – charging just $4.99 each – even though this costs them $30 to $40 million a year in gross margin.
Their reason?
Sure, they don’t mind having happy customers get great deals on food.
However, it isn’t entirely selfless.
They realize that because their whole business model is based on customers coming in to buy in bulk, offering great deals on food helps increase traffic. And as anyone who’s ever shopped at a Costco knows, once you’re inside the doors for whatever reason, odds are you’re walking out with a lot more than you originally planned.
It’s a great example of a business thinking strategically for long term profits.
Like Costco, the best moves you can make with your financial planning is to abandon short term thinking and instead look at investing strategically. Admittedly, this can be hard, especially given the 365/24/7 nature of financial news and the “crisis of the moment” they use to capture your attention.
The best way to stay focused on the long term is with regular financial checkups. Give us a call at 610-695-8748 or click here to schedule online and we’ll work together to make sure your plan is flexible to respond to opportunities, yet wise enough to stay safe and secure.
