Costco - No longer a competitive store - I'm writing this letter because I wanted to express my opinion regarding some changes you've made recently to Costco membership.

Costco - No longer a competitive store - I'm writing this letter because I wanted to express my opinion regarding some changes you've made recently to Costco membership.

Costco - No longer a competitive store

To: Costco Corporation PO Box 34331

Seattle, WA 98124 Member Services:

800-774-2678 Email User 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.

Email User

Ed F

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Comment On This

I just got online to see what are the benefits of becoming a Costco customer. I'm not sure I want a membership now.