Pet Peeves in Business

[84porsche]

I have been a Costco fan for a long time but a recent change in their business practices is making me wonder if they really deserve my future business. My family has several cars and all have tires purchased and serviced by Costco. Today, I got a nail in a tire on my Jetta and I called them to see if they would fix the tire. I told them that the car is new and has the original tires but I would like them to fix it and I'll pay for the repair and buy new tires when necessary. They refused service to me and told me to go somewhere else because they were not their tires. This really got under my skin as I have given them all my tire business for me and my family. I believe customer service to be extremely important but for them to refuse to fix a $20 issue. This may end up costing them $1000s in my future business. I may be bitter but the time for me to have to go hunt around for another tire center is ridiculous when they have done all my work in the past. Any opinions, any experiences, advice?

[Sonic dB]

3 things:

1) You are dealing with Costco which is a large corporation. Large corporations are not small stores and therefore by nature often do not bend rules.

2) You didnt buy the actual tires there, so they are under no obligation to help you.

3) Apparently they do not fix tires, or do not have a tire fixing service (other than those that they warranty) and since your tires are not theirs, they dont want to fix tires that they cant be responsible for.

Yesterday, I went to America's Tire to get issues fixed with 2 Rear tires on my 993 that ARE under warranty (which I paid for) to get repaired.

The drivers side tire has had a slow leak since I purchased them in Jan. Ive had it in there 2 times before about that issue and they could never find the source of the leak... but it leaks down where i have to fill it 1 time per week. Nothing is wrong with the rim.

The passenger side had a 6 inch drill bit wedged across the treads. Road Hazard??? Sure it is.

Here is what they did:

1) Agreed to replace the drivers side slow leaker with a new tire, but I had to pay for new warranty and also shipping on the tire $40 total.

2) They pulled the 6 inch drill bit from the passenger side....and would not replace that one under warranty because it didnt leak.

Well...im not too happy about this since I paid for their stupid Americas Tire warranty...but what can I do?

I bought the tires there, and got limited assistance.

You didnt buy your tires from Costco so you got no assistance.

I think I got screwed worse, dont you?

[84porsche]

Originally posted by Sonic dB
I think I got screwed worse, dont you?

You certaintly did get screwed worse. Sorry to hear about your warranty issues. If it was road hazard, their warranty should cover but I will look out for that fine print the next place I get tires from. Thanks for the heads up.

I really didn't get screwed but I was commenting on how their business practices have changed. They used to go the extra mile for their club members and that is why I went there. A couple of years ago, they would have fixed with no issues and now, I don't get it.

My point is if they are not willing to go that extra mile anymore then why do they deserve my business over say Sams Club or some other large corporation willing to offer me the same prices. I am generally a loyal shopper and go to the same places to buy the same types of items.

[gprsh924]

about 2 months after I got new tires for my 924 (purchased at Discount Tire) I got a flat and had to have the tire replaced. at the original purchase I did not spend the $40 for the warranty, but when i went back they allowed me to purchase it and they then replaced the $120 tire free of charge. im pretty happy with their warranty coverage

[Sonic dB]

The thing is... 84porsche... that it seems like almost no one goes the extra mile for their customers these days...even when they paid for it in advance!

I used to be satisfied with Am Tire, but its not the same any more.

Maybe its the slowdown in the economy, general conservativeness that businesses are showing these days...who knows..

Im with you though, in that next time I may take my business elsewhere.

Until then, I will be driving around with a 6 inch gash going diagonal across the threads of my passenger side tire.

[Don Plumley]

I understand the basis of your complaint - companies are not going the extra mile as often as they once did (famous story about Nordstroms, a clothing store, accepting a return of tires). Financial pressures to perform are relentless. While I'm a huge Costo fan, apparently you are not the first with this complaint:


From 2004: http://www.complaints.com/directory/2004/october/30/24.htm

Costco - No longer a competitive store
To:

Costco Corporation

PO Box 34331
Seattle, WA 98124

Member Services:
800-774-2678

customerservice@costco.com

Web address:
http://www.costco.com

Costco Customer service,

I'm writing this letter because I wanted to express my opinion regarding some changes you've made recently to Costco membership.

I've been a member of Costco (previously Price Club) for over 24 years (1980). For many years Costco offered unbeatable value and prices on products we all use. There was a time when I wouldn't need to shop price if it was offered at Costco, because seldom would any other store beat your prices. Over the last few years, your prices have consistently crept upward to the point where I have found better buys at a few of the larger outlets such as WalMart, not to even speak of the Internet. Even your gas prices can be matched around town now! Last month I was shopping for a 60" big screen DLP TV, a Samsung model your store carries.

I found it for several hundred dollars less at a discount store in Phoenix and Los Angeles. After mentioning a competitor’s price to your store manager, there was no interest in trying to compete for my business, so it was worth it for me to drive the distance and buy from them, which I did. Is this what I pay a membership fee for? The only area where your store offers a better buy (and not necessarily always) is with larger quantity items, but as our family has shrunk in size that isn't a benefit any longer.

Along with your prices not being as competitive, you've recently cut one of your main membership benefits that has kept me as a Costco customer over the last few years. I'm speaking of the tire department’s free flat tire repair for members, even if the tires weren't purchased from Costco. This has been a great benefit and one of the only reasons I've continued to renew my membership over the last couple of years, even though I've only had two flat tires in the last five year!

My wife and her sister (physically disabled) who is also a new member, ran over a nail a couple of weeks ago with her car and just happened to be in Costco's parking lot. What could have been a quick and easy experience turned out to be a very unhappy event! Costco refused to repair the flat since her tires weren't purchased from you, then they had to call AAA to have the tire removed and taken over to "Discount Tire" for repair. Two helpless women who both support your company were in a bind in your parking lot and your company couldn't even give them help for a service you perform everyday. I went to the manager to complain and express my extreme discontent for this action, I was then told of your new policy that stopped repairing flats for customers who didn't buy the tires from your store.

In my opinion, this is one of the final membership benefits you've cut that will hurt your business in a big way. If you want to reconsider your decision, I'll wait to hear from you personally. If not, I plan to go on the Internet and post this letter to thousands of readers who probably feel just as I do about your companies declining reputation for value. Many friends have already expressed the same opinion! Unfortunately my annual membership fee was just renewed before this event happened, otherwise I would not have renewed it again. Considering the added cost for a membership fee and your prices not being competitive as in the past, plus cutting benefits as aforementioned, it's just not an advantage to be a Costco member any longer.

If a competitor like Sam's Club or similar moves to Prescott, I know I and many other friends have already expressed switching our membership to them. I hope you will reconsider not only this last policy change, but also your effort to be more competitive with your pricing. I look forward to your response.

Sincerely,

Ed F

Prescott, AZ 86303

Costco response 10-26-04

Dear Mr. F,

Thank you for your email. We always appreciate and encourage communication from our members. Your comments and concerns have been forwarded to our Executives for their review.

I am unable to research your specific concern with the pricing on the Samsung TV without additional details. However, if you could provide me with a model number, I would be happy to research the price with our buying office. Costco's goal is to provide the highest quality of merchandise with the best possible price.

With regards to our recent change to tire service policy, as a service to our membership base, effective August 30th, 2004, we will no longer perform tire installations or maintenance services on vehicles that are not equipped with Costco purchased tires. The purpose of this change is to ensure that we meet the service standards for Costco Members that purchase tires from us. Over the years the increasing demand for no charge services on Non-Costco tires has made it difficult for us to adhere to our one-hour wait standard. This change will assure efficient service for our members'.

Thank you again for taking the time to share your concerns.


Sincerely,

Stephanie B.
customerservice@costco.com

Ed F

[cantdrv55]

I am a huge fan of Costco. No store has delighted me more day in and day out than Costco. Their AMEX rebate and return policy is second to none.

I can tell you that on one hot Sunday afternoon at 5PM, I needed road assistance and the only ones who were happy to help me was Costco at Temecula. I was driving from San Diego back to NorCal when my tire shredded on busy I-5. The tow truck came so late that Pep Boys wouldn't stay open even to sell me tires. Neither would Goodyear and Firestone. Only Costco waited for me to get there. If they hadn't, I'd have had to spend the night in Temecula.

[RickM]

I used to buy tires form Tire Rack then go to Costco and have them mounted, balanced and installed. It was a great deal for daily drivers as the cost was low and lifetime balancing was unbeatable.

About two-three years ago I stopped in to see if they could perform the service in the afternoon. I was informed then that they no longer worked with other vendor's tires. Bummer.

[Jims5543]

I always use a local mom and pop type of shop where you deal with the owner. If you did business with one of those for a long time they tend to hook you up when you need it.

[widebody911]

Originally posted by RickM
I used to buy tires form Tire Rack then go to Costco and have them mounted, [...] I was informed then that they no longer worked with other vendor's tires. Bummer.

This is becoming common - shops were getting "tired" (yuk!) of having to service a competitor's tires but not getting any margin on them. I used to have the local Big-O tires M&B my TireRack purchases, but now they charge an extra $20 per tire specifically for TireRack tires.

[Big Ed]

Originally posted by Jim Cesiro
I always use a local mom and pop type of shop where you deal with the owner. If you did business with one of those for a long time they tend to hook you up when you need it.

Exactly. 'Cept Mom and Pop are getting harder and harder to find lately.

[RickM]

Luckily I have a buddy with a full service shop. He was nice enough to show me how all the equipment worked and lets me use just about whenever he has free space.

[imcarthur]

Originally posted by Big Ed
Exactly. 'Cept Mom and Pop are getting harder and harder to find lately.

They were killed by Costco & Walmart etc. Welcome to the future. And it won't get any better.

Ian

[Moneyguy1]

And this will become more prevalent as the number of retailers is consolidated and reduced due to mergers, buyouts etc. Soon there will be no choices and you will "take it or leave it".

Beware the "big box" fixation.

[lendaddy]

There will come a point where a backlash occurs, even on a small scale. Mom and Pop are closer to coming back than leaving us forever. The niche of "service" will be satisfied, cause we'll ask for/demand it (which means we'll come to terms with paying for it).

Faith in the system guys