CostCo's low-cost hot dogs: The strategy of 'loss leaders'

Explaining the 'Costco effect'

The "Costco effect" is a term used to describe how the warehouse chain has perfected the art of the impulse purchase. The strategic layout of the store and product placement encourage shoppers to explore and make impulse purchases after initially getting reeled in by low prices on high-quality goods. Read first-hand accounts from shoppers explaining the spell-like effect in this story.

What Costco does with its unsold baked items

Ever wonder what Costco does with its seemingly endless supply of muffins and other baked goods? Rather than mark down the items or toss them in the trash, the big-box retailer donates the perishable food to Feeding America, a network of food banks and other programs that help feed those in need.

Dollar stores procure their merchandise in bulk to help cut costs

In order to keep prices cheap, dollar stores source this merchandise from a variety of places, including liquidation sales (an event that happens when retailers need to sell off inventory quickly), directly from distributors, foreign markets, and more.

Costco and Amazon have very similar pricing across everyday staples

This article compares the average prices of everyday staples at Amazon and Costco, like toilet paper ($1.12 at Costco, $1.14 on Amazon), to help consumers decide which discount retailer to purchase from.

'Buy one, get one free' is a clever way to get you to spend more money

One Burger King diner recently saw the price of her $2.16 sandwich rise to $3.19 per sandwich when she used a buy-one-get-one-free (or BOGO) coupon. Naturally, she became suspicious about how good a deal BOGO really is. This video explains why BOGO deals are a way for companies to get you to spend more money, rather than less.

Coca-Cola operates under an asset-light, divided structure

The "company" manages the brand itself, as well as its secret formula and syrup production. The capital-intensive "system" of independent bottlers, on the other hand, handles manufacturing and distribution.

How big brands keep your loyalty

We perceive ourselves as rational decision-makers—but research about our consumption habits suggest we are easily played by clever marketing. Here's how big brands design their branding to keep you coming back.

Soda is one of the most overpriced items at restaurants

All restaurant food is marked up—that's how they turn profits, after all—but soda is one of the most egregious. Fountain soda is remarkably cheap, with restaurants often paying a few cents for each glass before selling it for a few dollars. Food publication The Takeout estimates that the typical markup is around 1,000%.

'Hot dog' likely evolved from the common name 'dachshund sausages'

The ubiquitous handheld snack started in New York City, where vendors sold sausages in buns, calling out "Get your dachshund sausages!" Historians believe the change to "hot dog" was natural for many fans, who found the name funny and catchy.

Why there's a snack recession

Inflation and economic uncertainty have driven many Americans to make cuts to their snack budgets, according to reports from major food manufacturers like General Mills, JM Smucker, and Campbell's. Major retailers have also observed lower-income consumers cutting back on nonessentials due to the macroeconomic environment.

See an image of the earliest surviving coupons used in America

This clip from the "Acquired" podcast shows an image of one of the original Coca-Cola coupons. The hosts argue that the coupons helped popularize Coca-Cola in its early days, making them a key component in the story of one of the world's most iconic brands.

Companies developing new weight loss drugs

In recent years, weight loss drugs made a tremendous amount of money for Novo Nordisk and Eli Lilly. Other companies are developing new drugs to break into the market. This piece is a concise overview of companies creating and testing new drugs, how far along they are, and what Novo Nordisk and Eli Lilly are doing to compete with these emerging rivals.

In the 1960s, eateries started using discounted drinks (and sometimes food) as a marketing tactic to make money during off-peak hours

Today, we know happy hours as a time where bars and restaurants offer discounted alcoholic beverages (and sometimes even food or non-alcoholic drinks) in order to attract customers during off-peak hours. But originally, the term “happy hour” didn’t involve alcohol at all.

One of LVMH's key business innovations was widening the luxury market's target audience

While certain items under the LVMH umbrella can cost thousands of dollars, like large Louis Vuitton bags, others, like coin purses or lipstick, cost significantly less. Some argue that these comparatively lower-priced items allows LVMH's target audience to be much larger in size than it would have been if it only targeted the world's wealthiest shoppers, whereas others argue that it makes the brand more vulnerable to economic downturns.

The lifetime costs of caring for a dog can run anywhere from $16,440 to $52,075

The cost depends on the dog's breed, size, and ongoing health conditions, according to a recent Rover survey. Tactics such as purchasing dog food in bulk and asking for a generic version of your dog's prescription medications can help reduce costs.

Trader Joe's hired a college student to advise on health food lingo

The grocer jumped into the 1970s health food movement by selling granola, fresh juice, nuts, and raw milk. Joe Coulombe, the company’s founder and namesake, hired “a young hippie woman” from the University of California at Santa Cruz to teach employees the language of the health food movement to properly label their products.

Hear how the Piggly Wiggly grocery store founder attempted to squeeze short sellers by cornering the grocery store's stock

Founded in 1916 in Memphis, TN by Clarence Saunders, Piggly Wiggly was the first modern grocery store with aisles for customers to shop for themselves. In 1922, investors placed short positions, sensing that the stock may be overvalued after several Piggly Wiggly franchises in the Northeast went bankrupt. Saunders attempted to squeeze short sellers by taking out $10M and buying up nearly 99% of all available Piggly Wiggly stock. Ultimately, the fiasco ended with Piggly Wiggly's stock being permanently banned from the New York Stock Exchange and Saunders leaving Piggly Wiggly and filing for bankruptcy.

In 2013, consumers reportedly purchased more beer on Cinco de Mayo than on Super Bowl Sunday or St. Patrick's Day

Beginning in the early 1980s, breweries positioned Cinco de Mayo as a "Mexican St. Patrick's Day," sponsoring events and targeting Latino consumers. Anheuser-Busch and Miller created Hispanic marketing departments, while Coors spent over $60 million marketing to Latino consumers.

Credit unions, explained

Proponents of credit unions often point to the fact they’re not-for-profit cooperatives instead of for-profit businesses as a key selling point. This explainer dives into what this looks like in action—instead of pocketing the profits from interest rates, credit unions reinvest that money into the products and services they offer. For customers, this tends to create a more personal and community-oriented experience.

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

Southwest Airlines was profitable for nearly 5 decades

Business History hosts Jacob Goldstein and Robert Smith explore how a carrier with just four airplanes shuttling across Texas revolutionized flying by offering free whiskey, cheap late-night tickets, and free-for-all seating allocation, despite how hard it is to make money running an airline. However, the success story didn't last forever.

Read about different levels of price discrimination

Price discrimination is a business practice in which different customers are charged different prices for the same product or service. It's one way for a business to boost profits and take advantage of its market position. There are three levels of price discrimination, differentiated by the consumers targeted and the reasons for discrimination.

Pop Mart is the company behind the viral Labubu toy craze

Labubus, the Chinese collectible toys, are being heralded as the next Beanie Babies. Pop Mart, the company behind the Labubus, is using a few psychological tools to keep the Labubu economy booming.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Standard Oil's predatory business practices included temporarily operating at a loss to drive competitors out of business

Rockefeller's oil monopoly had a dark side, including cutting oil prices so low that Standard Oil was sometimes temporarily operating at a loss in order to drive competitors out of business.

How SpaceX Made Space Affordable

SpaceX has cut launch costs by over 95%—from $54,000 per kilogram to around $2,000—reshaping how we access space.

Contrary to popular belief, Netflix didn't kill Blockbuster

Blockbuster was definitely the loser in its years-long battle with Netflix, but the conventional wisdom that the streaming giant killed the established video store chain is incorrect. Blockbuster’s large debt load—and an activist shareholder who didn’t fully appreciate the threat Netflix posed—led the chain to squander its advantages.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

See how Budweiser's famous Clydesdales spend their days at Warm Springs Ranch, where roughly 70 to 80 of the beer brand's giant horses can be found at any given time.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

At the beginning of the 20th century, a group of young men ate standard American food—replete with food additives like borax and formaldehyde—as part of government research to better understand food safety.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

A vending machine run with Anthropic's AI went out of business after it was convinced to give away items for free and sell a video game console.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

Mid-century modern graphic designers, known for their bright colors and bold lines in advertising, also found success with children's books.

The Great Salt Lake's distinct dual coloration results from high-salinity organisms that only live in the northern portion and produce a purple protein.

Larger animals like giraffes, elephants, and blue whales have developed a unique defense against cancer, a phenomenon known as Peto's Paradox

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

'Silent' fireworks have gained more interest in recent years as a quieter celebratory option.

One disco producer saw 'Star Wars' four times on its opening weekend and was so inspired that he recorded the album 'Star Wars and Other Intergalactic Funk,' which produced a chart-topping single.

Volcanoes 'die' when their supply of magma runs out, if they are shifted away from their underlying magma reservoir, or if they get clogged by collapsing or their magma cooling back into rock.

In 2009, the nation was gripped by the story of a missing young boy who was believed to be floating over Colorado in a homemade balloon, until it was revealed that he was at home the whole time.