Well, if the contract says they can "mark up the cost of service" by any amount they please ($350, DOUBLING the tire price) then I guess that may well be legal. I'd bet that if every member found out about this rip off Good Sam road service would either be out of business as soon as current contracts expired, or virtually no member would ever go through GS to have a tire delivered, cutting their profiting off of the supposed "help" the member pay for.
I always assume the posters defending blatant ripoffs are company employees.
What do people pay GS for? Everyone today has a cell phone and can call for service themselves from anywhere there is cell service. Only a fool would pay someone to make a phone call for them and charge them $350. Only a bigger fool would defend a company who charge members for the opportunity to be grossly overcharged.
If this is company policy, (which it has to be - it happened), and GS believes it fair, they should have no problem letting all their customers know UP FRONT that they will DOUBLE the tire price. Of course, they would be killing their own business in one swift blow.