The company loses between $ 30 and $ 40 million a year selling rotisserie chicken so cheaply.
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Every year, Costco sells millions and millions of roast chickens. The Wall Street Journal reported in 2018 that the number of rotisserie chickens Costco sold in 2017 had risen from 51 million in 2010 to 87 million. On the other hand, The Motley Fool, said that in 2018 the company sold 91 million chickens.
It should be noted that the company also loses between $ 30 and $ 40 million a year when selling this product, since refuses to raise the price of chickens which, as of today, is $ 4.99. They do this with the intention of attracting people to the stores, since there is no other place where this dish can be found at such a low price.
By making people go to the store to buy the chicken cheaply, there is a greater chance that they will buy other things, and that is where the company ends up making a profit.
With this strategy, there is obviously the risk that buyers will resist the temptation and only buy the cheap chicken, which causes the store to lose money without making up the difference with other products, according to Mashed.
However, Costco apparently works well with this tactic.
In fact, in 2019, it was reported that Costco to invest $ 450 million in a chicken supply factory in Nebraska. They do this to be able to have chickens of the size that the company needs them, since, if they are too big, they will not fit in the rotisserie.
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