NEVER call for a tire- RIP OFF
Last weekend we were camping in Okeechobee, FL. Sunday morning I saw my rear inner dual was flat. I mean one side of tire missing, (had driven there in driving rainstorm.) I called good Sam. I've had ...
Forum Discussion
onrecess wrote:delwhjr wrote:
The amount of the charge does seem to be over the top but consider this:
The "other fees" probably covers a multitude of possibilities including the tire dealer charging a higher price through GS to cover what he pays GS for the referral or making up the discounted service fee he gets from GS. Since you went directly he gets to look like the hero by charging his normal price because he didn't have to pay GS or discount anything.
Again, I think the markup is excessive but it is not an unusual business practice.
Why would the tire repair guy tell me he was the company GS called? What good does it do him to do that when simply stating the $500 price would have netted him the same business and profit? That makes no sense.
Do you honestly believe GS emergency service would stay in business for five minutes if members knew GS saving the member two minutes finding a repair shop number and dialing it would cost them $250 OVER the price they pay for this "service?"
It makes perfect sense. He quoted a higher price to GS to keep the same level of profit after paying them commissions or other fees which is normal for business referral systems. He told you he was the one they called to make him look good when he gave you the lower price.
It's called a captured market. The same thing happens when you pay higher prices for drinks and food inside an amusement park or sports venue. They have you and your not going anywhere.
You got lucky and found someone to do the work. In another situation you might not have been so lucky and would have paid the fee willingly to get on your way.
GS has been in business for many years doing that very thing and I bet they are still in business for many more.
