How does Costco sell hot dogs so cheap?

Online Answer
The reason lies in the company's business philosophy. Costco could easily rake in millions more in annual profits by raising prices, but maintaining low prices for hot dogs and other food court eats works as a proven incentive for shoppers.
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Baking Potatoes Some things can change, but this clearly wasn't one of them. At Costco, $10.99 will get you 15 pounds of baking potatoes (that's 73 cents per pound!). If you want to go the shortcut route, 3.25-pound packages of Idahoan Buttery Homestyle Mashed Potatoes are boxed up and available for $6.99..
In the end, Costco ended up building its own hot dog-manufacturing plant in Los Angeles to make Kirkland Signature hot dogs and keep the prices lower.
The tails are finished when they hit an internal temperature of 140F. We took the meat from the shells, dipped them in butter and devoured! We thought that these were delicious. I will qualify this by saying that I did not grow up in Maine eating cold water lobster that was cooked right off the boat.
5. Kirkland Signature's brand nixed the unhealthy additives. Apart from being a 100% pure beef hot dog, Costco's hot dogs don't have: by-products, corn syrup, phosphates, fillers, or artificial colors or flavors.
1. Meat and Poultry. While Costco does sell good quality meat and poultry, their prices tend to be much higher than local grocery stores. ... In the end, it pays to shop your local grocery ads every week and stock up on meat and poultry when it goes on sale instead of picking it up from Costco.