Business · ~2 min
Costco has held its rotisserie chicken at $4.99 since 2009, and loses money on every bird.
The bird lives in the back corner, past everything else.
The bird lives in the back corner, past everything else.: ENTRANCE · Electronics · +$24 · Apparel · +$16 · Bulk pantry · +$12 · Household · +$10 · Produce · +$9 · Rotisserie · loss leader · $4.99
The $4.99 chicken is a loss leader: priced below cost to pull you through the door. The real move is placement. It sits at the far back corner, so reaching it means walking past every high-margin aisle, and each one quietly adds to your cart.
−$30M
lost on chicken each year
$113
average basket
The cheapest thing in the store is the most expensive walk you'll take.
Sources
NPR Planet Money
confidence: verified · every bit is fact-checked before it ships