A Sam’s Club member has revealed the “amazing” benefit that gives the department store chain an edge over its competitors.
The hidden benefit, which was only recently discovered by the member, was revealed in a viral TikTok that has been viewed more than 300,000 times.
Members of Sam’s Club, Walmart’s version of Costco, should stop going to gas stations and paying to have their tires checked and repaired, TikTok user Marie explained.
Instead, they should take advantage of the fact that Sam’s Club repairs its members’ tires for free.
This 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
“I don’t know if everyone knows this, but if you’re a Sam’s Club member, any type, the basic membership is fine, and you have a flat tire or a tire that goes flat on a regular basis and you go to the gas station every few days to fill it up, you don’t have to do that anymore,” Marie explains in the video.
“I had a nail in my tire, they fixed it while I waited 45 minutes, absolutely free, I didn’t have to pay a $,” she said as she showed her itemized receipt.
Sam’s Club guarantees that members have access to lifetime tire repair service.
The free service includes “removal of the wheel, inspection of the tire and analysis of the damage, repair (if repairable), mounting, adjustment of the tire pressure to the pressure stated on the registration certificate, balancing, replacement of the valve (if applicable) and mounting of the wheel,” according to the website.
Additional auto services include a complimentary battery check and complimentary installation of wiper blades, provided the blades are purchased from Sam’s Club.
This popular perk could give Sam’s Club an edge over its biggest rival, Costco.
Costco is the largest membership-based grocery chain, with sales twice that of its competitors, even though they both have the same number of clubs.
Last year, retailers went to war over a food court favorite: Sam’s Club undercut Costco’s famous $1.50 hot dog and soda combo by 12 cents.
Now Sam’s Club is finding new ways to attract new customers: by taking customers away from competitors or by attracting Americans who aren’t members of a club.
For example, it is offering lower membership fees, investing in its own brands and introducing the latest technology at the checkout. Many of these initiatives appeal to young Gen Z and millennial customers, experts say.
Discounted memberships
To compete with Costco, Sam’s Club offers lower membership fees.
Currently, Costco’s standard membership costs $60 per year and its executive membership costs $120.
Sam’s Club, on the other hand, typically offers a club membership for $50 per year and $110 for the plus option.
Recently, however, they have been offered for just $20, which is a third of the price of Costco.
The auto-renewal price only applies to new Sam’s Club members or members whose membership expired more than six months ago.
Private label investment
Sam’s Club’s own brand, Member’s Mark, continues to lag far behind Costco’s Kirkland brand in sales.
That’s a fact that Sam’s Club CEO Cris Nicholas is aware of and would like to address.
“The club model persists because there are brilliant traders who focus on creating or buying exceptional items,” Nicholas told CNBC.
“Costco has done a great job of that with Kirkland over the years, and we’ve seen it be successful.”
Member’s Mark accounts for about 30 percent of Sam’s Club’s sales, while Kirkland Signature accounts for about 28 percent of Costco’s.
But Costco’s sales are twice as high as Sam’s Club’s, so overall Costco sells many more of its own brand products.
Sam’s Club invests in its own brand products to ensure they are “exclusive designs using premium materials and the highest quality ingredients to ensure the best quality and value at members-only prices,” Nicholas explains.
Sam’s Club steps up price war with biggest rival
Costco, Sam’s Club’s biggest rival, still generates double the revenue
Technology Attracts Generation Z
Sam’s Club has done everything it can to stay ahead of its competitors with new technology, and it has paid off, attracting younger customers.
The club introduced new scan-and-go technology with an app and AI-powered exit gates earlier this year.
The update allows customers to scan and pay for their groceries on their phone, then leave the store immediately.
According to Nicolas, the app has been well reviewed and customers respond positively to the gates.
It appears this high-tech approach is paying off: Sam’s Club has seen its Gen Z membership grow by 68 percent in just two years.
“That’s not something that’s characteristic of the club model, but it’s something we offer,” Nicholas said recently.
“That generation thinks it’s cool to save money, and we agree with them,” he added.