If you raise the price of the hotdog, I will fucking kill you

I bloody love Costco. Who doesn’t want a 30lb bucket of peanut butter? (Apparently my wife – long story).

When I and other customers step into a Costco warehouse, we expect large quantities and relatively low prices, but very few of us would realise that the brand’s most fiercely protected product is actually a simple hot dog and soda combo. Priced at $1.50 since 1985, it has become a touchstone for how Costco balances short-term profit with lasting customer trust. Co-founder Jim Sinegal famously quipped:

“If you raise the price of the hot dog, I will fucking kill you,”

This was in response to an internal suggestion from the then CEO that the company increase its profit margin. Although that statement sounds extreme, it signals just how seriously the organisation values the promises it makes to members. If a single menu item can trigger such a reaction, it is worth exploring the broader lessons about brand principles, loyalty, and consistent execution.

A Cornerstone of Brand Identity

At first glance, it seems absurd that a cheap snack would matter so much to a global retailer. In truth, the hot dog’s static price symbolises a deeply held philosophy that Costco will keep prices low whenever possible, even if that sacrifices incremental revenue. By anchoring one highly visible product at a static cost, Costco reinforces its reputation for practical deals and consumer advocacy. First timers (Costco Noobs) encountering the legendary hot dog might see it as a quirky perk, but long-time members recognise it as a concrete demonstration of the company’s customer-first values. If even a single hot dog remains off-limits for price hikes, it reassures them that the rest of the store’s pricing strategy likely follows the same principle.

This consistency fosters a sense of goodwill. Customers sense that if Costco sticks to this small but symbolic gesture, it probably upholds similar standards elsewhere. Trust does not manifest overnight; it accumulates when consumers see an organisation repeatedly acting in a way that benefits them. The hot dog’s unchanging price is not about profits on that specific item. It is about telling members, “We value your budget and we are not looking to gouge you,” an approach that supports the retailer’s entire membership model.

Balancing Profit and Brand Promises

Businesses often face pressure to meet earnings targets, whether from shareholders, lenders, or internal growth forecasts. In that climate, tweaking a hot dog’s price might appear to be a trivial tactic to improve margins. If suppliers raise ingredient costs or inflation soars, a small price bump can look perfectly rational on a spreadsheet. However, executives risk forgetting that a brand is more than a set of financial levers. Once a company erodes the trust it has built, especially over many years, reversing that damage can be costly and time-consuming.

Some firms focus heavily on quarterly reports and overlook the slower, subtler process of losing customer loyalty. It rarely happens all at once. People do not cancel their memberships in protest the moment a hot dog goes up by a small amount. Yet a chasm can form between how the brand presents itself and how it actually behaves. Over time, shoppers notice the gap. They might grow sceptical about whether other product prices have increased, or if new policies unfairly benefit the company at the customer’s expense.

The Role of Cultural Symbols Within an Organisation

Costco’s approach to the hot dog also matters internally. When leaders refuse to compromise on a signature product or policy, they send a message to employees that the business cares about more than short-term gains. Employees who interact with members each day, whether at checkouts or membership desks, see that management respects foundational promises. This alignment can improve morale by minimising the disconnect between stated principles and actual decisions.

Conversely, when leaders prioritise near-term profit over deeply ingrained values, employees often feel the tension first. They must explain or justify decisions that conflict with the image of consumer-centred service the company has cultivated. This contradiction can erode staff loyalty and diminish their enthusiasm for delivering a quality experience. People tend to work harder, more creatively, and more energetically when they believe in the company’s genuine commitment to its mission. If the mission seems hollow, it becomes difficult for anyone to champion the brand wholeheartedly.

Consistency as a Strategic Asset

Many organisations aim to demonstrate reliability, but it is much easier to claim this virtue than to prove it. Consistency involves standing by certain core attributes or promises even when market fluctuations, supplier costs, or executive ambitions create pressure to alter them. That discipline can elevate a brand above competitors that shift gears abruptly at the first sign of financial strain. In the retail space, countless shops try to undercut each other on price, yet few manage to balance cost savings with genuine loyalty in the way Costco does. By holding the line on specific items or benefits, a company signals to customers that it does not abandon its core identity when the numbers become inconvenient.

Other examples exist across industries. A software-as-a-service platform might promise never to incorporate invasive advertising into its paid tiers, even if such ads could boost revenue. A luxury brand might refuse to outsource production to lower-cost factories, safeguarding its heritage of skilled craftsmanship. Each case follows the same principle: choose a brand-defining commitment, then stand by it regardless of near-term temptations.

Identifying Your Organisation’s “Hot Dog”

Not every business has a single product that so clearly symbolises its mission, but each should strive to define a few key pillars that reflect its values. For some, that might mean a product warranty that inspires consumer confidence, even when returns increase temporarily. For others, it could be transparent pricing that never hits customers with hidden fees. Identifying these pillars requires input from both internal teams and external customers, to confirm what resonates most strongly in practice rather than theory.

Once identified, these pillars become the standard against which proposed changes are measured. For example, when a leadership team contemplates raising membership fees or adjusting a service policy, it should first check whether the shift undercuts a core brand promise. If it does, there needs to be a serious examination of whether the extra income justifies potential harm to the brand’s most loyal supporters. The Costco hot dog story suggests that certain items or policies should be off-limits, and that line must be drawn clearly and communicated company-wide.

Long-Term Consequences of Sacrificing Core Values

Some executives underestimate the lasting fallout of eroding a brand’s prized commitments. They may rationalise that it is “only a small change,” especially if it is a matter of a few pence added to a product cost. Yet brand perception often hinges on small but meaningful details. Customers who sense a subtle shift in the brand’s ethos might stop referring their friends, might hesitate before renewing a membership, or might gradually divert purchases to rivals with clearer principles. This attrition can happen quietly, without the flash of a large scandal or dramatic public protest.

Repairing brand damage tends to be far more expensive and complicated than preventing it. Once trust is diminished, no amount of new slogans or rebranding efforts can fully erase the memory of a broken promise. Consumers and employees alike can become cynical, viewing any marketing campaign as spin instead of genuine engagement. The resulting sentiment can last for years, making it hard for even the best-laid strategic pivots to gain traction.

Why Brand Integrity Matters for Growth

Building a strong brand is not merely about fostering fuzzy goodwill; it has real commercial impact. Customers who trust a company’s intentions often exhibit greater lifetime value, spending more over the course of the relationship. They are also more likely to experiment with new products or services, expanding their usage beyond the initial purchase. Employee engagement increases as well, since workers prefer environments where leadership appears consistent and transparent.

Investors, lenders, and partners also pay attention to a company’s brand stability. A firm that makes quick, revenue-focused decisions at the expense of customer or employee trust can create an impression of volatility. Over time, that perception can affect everything from investment terms to merger opportunities. In contrast, a brand that steadily honours its commitments may attract stakeholders who value steady leadership, making it easier to secure funding or negotiate beneficial deals.

Lessons Across Industries

The Costco hot dog may seem like a niche retail anecdote, yet it illustrates a universal principle: in a competitive world, core values are often the biggest differentiator. Customers can find discounts in many places, whether online or in other big-box stores. What they may not find is a proven dedication to looking after their best interests. Costco’s steadfast promise on one small product sends a wider message that resonates through every aisle and every department.

That principle can apply anywhere. A consultancy might build its name on transparent billing, refusing to pad invoices. A restaurant could remain unwavering about sourcing ethically raised ingredients, rather than switching to cheaper suppliers. Whatever the commitment, if it connects directly to the brand’s identity, it should be protected. While day-to-day financials still matter, they should not eclipse long-term loyalty and authenticity.

Preserving Trust

The fervent defence of a single hot dog price reveals the high stakes involved in safeguarding brand integrity. A company’s credibility is fragile, shaped by many subtle and overt signals about how it values its customers. Raising the price of a well-loved item might appear trivial, yet it can be a tipping point for doubts about broader practices. Once those doubts set in, trust unravels more quickly than many executives anticipate.

Costco’s experience shows that even a modest, everyday feature can serve as a crucial anchor, reinforcing customer satisfaction and internal cohesion. By stating that the hot dog must remain affordable, leaders convey a message about the greater ideals that underpin Costco’s membership model. It is a reminder to all organisations that investing in customer confidence pays off in the form of sustained loyalty, positive word of mouth, and a consistent brand narrative.

Choosing to preserve certain commitments, despite pressure from the balance sheet, is not naive; it can be a strategic decision that delivers enormous long-term benefits. Consumers remember how they feel when a company respects their needs and wallets. Likewise, employees appreciate a workplace that aligns words with deeds. In the end, reliability, even in small gestures, fosters the kind of authentic bond that helps a brand stand firm when competitors race to cut corners or capitalise on fleeting trends. The hot dog remains affordable not merely because of tradition, but because Costco values the trust it represents—and any company striving for a lasting customer relationship would do well to remember that lesson.