Costco’s rotisserie chicken is a famous staple of the wholesale chain store — not just because it is considered to be delicious, but because it costs only $4.99.
Costco loses an estimated $30 to $40 million a year by keeping rotisserie chickens at $4.99 each. But the company would rather keep members happy and foot traffic high.In 2015, Costco's chief financial officer said the company was willing to sacrifice"$30 million, $40 million a year on gross margin” by keeping the chicken’s price at $4.99. Many attribute this to the fact that customers go to Costco to buy more than just the chicken, and this inspires brand loyalty.
Costco’s rotisserie chicken is a famous staple of the wholesale chain store — not just because it is considered to be delicious, but because it costs. The chickens have pulled consumers in to Costco for decades, and in 2018 alone, the company reportedly made $91 million from sales of the item. Despite rising costs, the company has kept the price at $4.99. According to a tweet from Uber Facts, this is important to keeping customers happy and shopping consistently in the store:,” which means that the company swallows the losses because the item helps draw customers who end up buying a lot more than just the chicken from the store.
It thus boiled down to building customer loyalty by giving people a good experience through consistent prices.
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