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A Sam’s Club member has revealed the ‘incredible’ benefit that gives the department store chain an edge over its competitors.
The hidden benefit, recently discovered by the member, was revealed in a viral TikTok that has been viewed more than 300,000 times.
Sam’s Club, Costco’s version of Walmart, should stop members from going to gas stations and paying to have their tires checked and fixed. TikTok user Marie explained.
Instead, they should take advantage of the fact that Sam’s Club repairs its members’ tires for free.
The benefit applies even if the tires were not purchased at Sam’s Club.
Sam’s Club will repair its members’ tires for free
The benefit is offered regardless of whether the tires were purchased at Sam’s Club or not.
“I don’t know if everyone else is aware of this, but if you have a Sam’s Club membership, any kind, the basic membership is totally fine, and you have a flat tire, or a tire that’s losing air on a regular basis, and then you keep going to the gas station every few days to get a refill, don’t do that anymore,” Marie explained in the video.
“I had a nail in my tire, they fixed it while I waited 45 minutes, absolutely free, $0 to pay,” he said, showing his itemized receipt.
Sam’s Club says its members have a lifetime tire repair service available.
The free service includes “wheel removal, tire inspection and damage analysis, repair (if repairable), mounting, adjusting air pressure to plate pressure, balancing, new valve stem (if applicable) and wheel installation,” according to its website.
Additional auto services include a free battery check and free wiper blade installation when the blades are purchased at Sam’s Club.
This popular perk may help give Sam’s Club an edge over its biggest rival, Costco.
Costco is the largest of the membership-based warehouse chains, with twice as many sales as its rival, even though both have the same number of clubs.
Last year, retailers clashed over a food court staple: Sam’s Club undercut Costco’s popular hot dog and soda combo to $1.50 for 12 cents.
Now Sam’s Club is finding new ways to win new customers, either by poaching them from rivals or by attracting Americans who don’t belong to any club.
For example, it offers lower membership fees, invests in its own brands and incorporates the latest technology into its cash registers. Many of these initiatives appeal to young customers from Generation Z and millennials, experts say.
Discounted Memberships
In an attempt to compete with Costco, Sam’s Club is offering lower membership costs.
Currently, Costco’s standard membership is $60 a year and its executive level is $120.
Sam’s Club, on the other hand, typically offers a club-level membership for $50 a year and $110 for its Plus option.
However, it has recently started offering them for as little as $20, a third of the price at Costco.
Auto-renewal pricing is only open to new Sam’s Club members or those whose membership expired more than six months ago.
Investment in own brand
Sam’s Club’s own brand, Member’s Mark, continues to lag far behind Costco’s Kirkland brand in terms of sales.
It’s a fact that Sam’s Club CEO Cris Nicholas knows and is willing to close the gap.
“The club model survives because there are brilliant merchants who focus on creating or buying exceptional items,” Nicholas told CNBC.
‘Costco did a great job of that over the years with Kirkland, and we saw it succeed.’
Member’s Mark accounts for about 30 percent of Sam’s Club sales, while Kirkland Signature accounts for about 28 percent at Costco.
But Costco’s sales are twice those of Sam’s Club, so it generally sells many more private-label products.
Sam’s Club is investing in its private label products to ensure they are “exclusive designs that use top-of-the-line materials and the highest quality ingredients to ensure they are the best quality and value at member-only prices,” Nicholas explained.
Sam’s Club steps up price war against biggest rival
Costco, Sam’s Club’s biggest rival, still generates twice as much revenue
Technology drags Generation Z
Sam’s Club has made a concerted effort to outpace rivals with new technology, which has paid off by attracting younger customers.
The club launched new scan-and-exit technology earlier this year with an app and AI-powered exit gates.
The update allows customers to scan and pay for their purchases on their phone and simply walk straight out of the store.
According to Nicolas, the app has received good reviews and customers have responded positively to the doors.
In fact, the high-tech approach appears to be paying off, as Sam’s Club has increased its Gen Z membership by 68 percent in just two years.
“That’s not something that’s typical of the club model, but it’s something we offer,” Nicholas said recently.
“That generation believes it’s okay to save money and we agree with them,” he added.