Costco earns most of its profit from membership fees, enabling near-cost pricing that outperforms #2 Sam's Club on margin efficiency. Its Kirkland Signature private label is rated as good or better than national brands by Consumer Reports in 90% of tested categories. The $4.99 rotisserie chicken, held at that price since 2009, and the $1.50 hot dog, unchanged since 1985, are iconic loss leaders that drive member loyalty and foot traffic.

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