MBA for Teens #3: Why Does Costco Sell $1.50 Hot Dogs — at a Loss — Forever?
Costco has sold the same hot dog + soda combo for $1.50 since 1985. Inflation has tripled. Beef prices have quadrupled. Costco's own CFO once asked the founder if they should raise the price, and was told "if you raise the price of the hot dog, I will kill you."
It's not a mistake. It's the strategy. And once you understand why, you'll see the same playbook hiding in Amazon Prime, Spotify, Disney+, and your gym membership.
In this free workshop, we'll break down how a company can deliberately lose money on a product — forever — and still be one of the most profitable retailers in the world. You'll learn the difference between a money-losing product and a money-losing business, and why some of the smartest companies in the world are running this exact playbook on you right now.
What you'll learn:
Why losing money on purpose can be the smartest move a company makes; how membership and subscription businesses actually make money; what "customer lifetime value" means and why every founder obsesses over it; and how to spot the same strategy in companies you use every day.
Agenda:
Welcome & the $1.50 hot dog mystery
The math: how much money does Costco actually lose on each hot dog? The real business: where Costco's profit actually comes from (it's not what you think)
Your turn: find the "hot dog" in 3 other companies.
The framework behind every great subscription and membership business
Who this is for:
Teens aged 13–18 curious about how businesses really make money
Anyone who's wondered why some companies "give stuff away" and still win
Teens interested in finance, strategy, or starting a subscription/membership business
What you need:
A laptop or tablet, stable internet, and a willingness to think backwards. No background required.
🟧 About Built Young:
Business is changing fast. The teens who learn to think like founders now won't just adapt to that future — they'll lead it. Built Young runs hands-on bootcamps that give teens 12–18 the business fundamentals, founder mindset, and real mentorship to build their first company — before college. To learn more: https://builtyoung.org/programs/mba-lab