If your argument is correct and tires really do last longer with
nitrogen then it appears that Costco is shooting themselves in the
foot since they would have less repeat sales over time, not more.
From what I've read so far you have no clue why Costco does what it
does. It's pure guesswork on your part.
When I was a Costco member I could almost always find the same or
better deal on a high dollar item elsewhere. But the two stores near
me are always packed so what do I know. Or maybe it should be there's
one born every second?
Costco is one of the few stores that sells tires that actually honors
tread wear warranties. They also include road-hazard insurance rather
than charge extra for it.
Like any business they want to minimize the cost of returns. They get
credit back from the tire manufacturer for tread wear returns but few
people take advantage of this even though they are entitled to. Road
hazard replacements aren't covered by the tire manufacturer, so they
want to minimize them.
If everyone was good about keeping tires properly inflated then there
would be little upside in inflating with nitrogen. They aren't so there is.
Remember, even though some tire stores may charge $5 per tire for
nitrogen, the actual cost to generate that nitrogen is about 1/100th of
On Thu, 13 Nov 2014 14:50:44 -0500, "Ralph Mowery"
I used to buy ALL of my tires "cash and carry" - and take them home
and install and balance them. That was when I had easy access to the
equipment. Now that I don't have easy free access to the equipment, I
buy them installed on the rim and balanced. All told, I bought a lot
more bare, uninstalled tires than I have installed.
But I am, admittedly, not your average customer.
Actually, the margin on tires is QUITE slim. If you are going to get
rich selling tires, you will have to sell a lot of them. One place
where I worked we sold over 1000 sets of snow tires each winter out of
a 3 bay service station. I'm sure we made more on the installation
than on the tires back in 1969-71. The wholesaler might make a better
margin than the retailer - and Costco is, in effect, both so they can
afford to sell them for less than the average independent shop - for
No, because people will buy tires from places that sell tires that
last - so the customer comes back to buy more tires if the tires stand
up well - they buy tires elsewhere if they do not - -with price being
a secondary consideration in many cases.
And the average car owner owns a car long enough to wear out about 1
1/2 sets of good tires.- so they will be in to buy the next set of
tires for their next car more likely than for this one.
Used to be there were great deals at costco in Canada - now I can
usually buy just about anything for less elsewhere if I look hard
enough. The advantage of Costco is they have EVERYTHING under one
I'm not a member any more - found it wasn't worth it for me.
Big difference. I shop at both as they both have benefits tot he
consumer. The meat from WalMart sucks and is injected with brine
solution. The meat at Costco, BJ's and the like is top quality.
We use Cascade Platinum dish washing detergent. It is 17¢ a dose at
BJ's and is 23¢ at Wal Mart. Assuming a load a day I save $21 a year on
just one little item. Laundry detergent was a savings, paper towel was
minimal. I can save enough in meat in a month to pay for the membership.
Your money, your choice, but the Clubs can be a money saver to a smart
I am sure people have been looked at in many years over the years. To
someone like me that has not, it seems difficult to know what drives people
to buy things. I know a small farmer that had some produce for sell at a
flea market. At 25 cents he could not sell any, but as soon as he took that
sign down and made it 3 for a dollar he started selling the same thing.
Peopel would pay more ,but probably thought they were getting a bargain.
While right or wrong, I am sure any business of any size has some people
looking at ways to get customers in the store and make the most profit.
This email is free from viruses and malware because avast! Antivirus protection is active.
Everyone know that the three for a dollar stuff is better quality than
the quarter stuff.
I've seen that happen over they years. I've seen it with industrial
products too. A certain tape for cartons was $1 a roll. A guy started
making it and could profitably sell it for half that, but had no takers.
He increased the price to 75¢ and got orders. Eventually sold the
company at a nice profit too. .
There is NO "free benefit"! The customer pays for EVERYTHING. A business
must make a profit to survive. I don't know Costco's business model on tires
but it may a selling point that costs then very little in the volume they
do. Ask Claire, he will tell you they had a price structure they followed
and the only thing that wasn't figured in was rework. But that was included
in the labor charges and/or tech agreements.
Guy I know from church, military vet. He is so pleased
at the free phone, free medical care, etc. Every time
he says "free" my brain changes that to "taxpayer
Star Spangled banner: "O'er the land of the taxpayer
funded, and the home of the brave."
On 11/18/2014 2:28 PM, Tekkie® wrote:
<snip> > There is NO "free benefit"! The customer pays for EVERYTHING. A business
Costco, or any store, determines prices based on what generates the
maximum revenue, not on what it actually costs them to provide a product
The mistake that many people make is to assume that the cost of the
included nitrogen is a line item in their price calculation of what to
charge for tires. Retail doesn't work that way, for better or worse.
They also include valve stems on non-TPMS tires instead of charging
extra for it as many tire stores do--$2 for a 10¢ item. Costco is not
going to lower the price of a tire by 10¢ if a customer declines the
Costco's tiny cost for nitrogen is almost certainly offset by savings in
labor and warranty costs so if anything they should charge extra to
customers that don't want nitrogen.
On Monday, November 24, 2014 7:05:15 PM UTC-5, sms wrote:
You keep making this claim that the cost of nitrogen is offset in labor
and warranty costs, without a shred of supporting evidence. The only
actual real world data that I've seen is a test by Consumer Reports that
showed that tires that were purged of all air, then filled with N, had
a tire pressure difference that was about 1 PSI higher over the same
tires filled with regular air, a year later. It's hard to see how that tra
nslates into labor and warranty savings at Costco, or anywhere else.
And I don't think the poster is saying that the customer specifically pays
for Costco's costs on a line item, buy line item basis. But if Costco's
costs do get paid for by consumers, one way or another.
On Wed, 19 Nov 2014 07:46:15 -0500, Stormin Mormon
If he's a military vet, he's likely paid for it 3 times over. You
want to complain, retroactively trade places with him. Korea, VietNam,
Desert Storm, or Afganistan - doesn't make any difference.
There are a lot of invisible injuries (ptsd etc) that just don't go
On 11/19/2014 9:05 PM, firstname.lastname@example.org wrote:
Would be nice if he'd say "taxpayer funded" instead.
At least his description would be accurate. From what
I know of his service, though, he's paid every penny
of the value in what he did for the country.
Christopher A. Young
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