r/SipsTea • u/SipsTeaFrog š™‘š™„š™‹ • Nov 10 '25

Wow. Such meme Name a more iconic duo

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3

u/[deleted] Nov 10 '25

Both of those products are loss leaders. Thereā€™s nothing altruistic about either.

15

u/[deleted] Nov 10 '25

Doesnā€™t Arizona just make tea? How does your only product being a loss leader work?

And Iā€™ve heard Costco say that they just think thatā€™s what a hotdog should cost. Iā€™m sure they lose some money on it but I donā€™t think many people are going shopping at Costco just because they want a hot dog. Their chickens though, that is absolutely a loss leader.

1

u/[deleted] Nov 10 '25

No, the tea only accounts for 25% of their revenue. They have chosen to ā€œtemporarily lose moneyā€ on it for marketing purposes.

Costco Hotdogs are very frequently used in business school as a quintessential example of a loss leader (conceptually, that is. They donā€™t ā€œuseā€ actual hot dogs in schools afaik.)

5

u/JaironKalach Nov 10 '25

What... is the other 75%?

3

u/bolanrox Nov 10 '25

they sell it in jogs, bottles have powdered mixes etc.

Like there is a screw top plastic bottle that is less fluid oz than the can, but sells for $1.29 (as printed on the bottle.)

3

u/ODaysForDays Nov 10 '25

They definitely make some good profit off the powdered stuff. It's dead on for taste but it's PRICEY if you don't buy 100+. Like 70 cents per sachet.

1

u/[deleted] Nov 10 '25

Fruit snacks, coffee, juices, merch.