Why Is The Costco Rotisserie Chicken Price So CHEAP?
Why IS the Costco rotisserie chicken price SO CHEAP? At a LOW $4.99, you may not believe their reasoning. With the rising cost of EVERYTHING the member based shopping giant (I am not a member, and I have never been to a Costco) has vowed to keep their SUPER popular rotisserie chicken at $4.99, giving them a competitive edge over their competition.
Let’s face it. You’ve had a LONG day of work, or errands. You’re too exhausted to cook AND you are starving. But, we don’t want take-out again! Is there anything better than a freshly made rotisserie chicken? Plus that aroma hits you when you get it in the car. NO, I have not taken off a wing and eaten it on the ride home. I have thought about it, but if I get caught, I don’t want to be the next Tik Tok embarrassment that goes viral. So at $4.99, Costco owns the rotisserie category. The price at most other grocery outlets is around $9.99.
The Chicken Has It’s Own Facebook Page
The Costco rotisserie chicken is SO popular, it has become a cult item, with it’s own Facebook Page bragging 18,000 followers. According to Costco, the big box store sells around SIXTY MILLION chickens a year, here in the United States alone.
How Can They Do A $4.99 Chicken?
It’s right in front of our face. They LOSE money. $30 to 40 MILLION a year. According to nightdaily.com:
“And by setting itself apart from its competitors by pricing low, Costco guarantees a higher footfall in its stores. So, despite losing out on a few dollars per chicken, the company makes up for it with customers’ other purchases once they’ve stepped through the doors.”
Costco knows what they are doing. You go to Costco for big bulk items. So when you get the deal of a lifetime on a delicious rotisserie chicken, they know you’ll spend on many other items. It doesn’t stop there. Costco invested $450,000,000 to create their own production plant, in a partnership with farming facilities. According to Vox.com:
“In 2019, Costco made an unprecedented move to source its chicken at even lower margins: It set up its own feed mill, hatchery, and slaughter plant in Nebraska, and contracted nearby farmers to raise over 100 million birds each year, all under the name Lincoln Premium Poultry (LPP). It could be saving the company up to 35 cents per bird.”
ONE HUNDRED MILLION?
So the next time you’re at the Costco in Waltham, at $4.99, you could buy two, one for dinner, and one for the ride home. See you on Tik Tok. But at $4.99, who cares.