The Reality Reports

Setting the right price is one of the most important parts of running a service business. Your rates must cover your expenses, pay you for your time, and leave enough profit to support growth. Copying a competitor’s price may seem easy, but that business may have different costs, skills, and goals. A better price begins with your own numbers.

The Famous Food Court Combo That Never Changes Price: Walk into any Costco warehouse today and you'll find the same deal that existed in 1985: a quarter-pound hot dog and refillable soda for just $1.50.  This price has remained frozen in time while everything else has gotten more expensive. The story behind this pricing decision involves a dramatic conversation between two company leaders that has become business legend.