Anyone engaging motoroil wholesale?

[Bellinghamster]

Originally Posted By: KrisZ
Originally Posted By: Bellinghamster
Originally Posted By: Garak
Originally Posted By: Bellinghamster
I am really curious about the real margin rate for motor oil.

I don't have all the information, but I do know that our big retailers like a markup of over 100% on motor oil. I know I get my Delvac 1 from the distributor at less than half of what the big retailers charge here, and we know they're paying less than I do.

Most of my suppliers prefer a roughly 10% markup on oil. I do fairly well at the distributor, but large quantities will get you another sizeable discount. There are indications that certain very large users of HDEOs up here are paying half of what I already pay for Delvac 1, and I'm doing far better than retail. Part of that, of course, is package size.


For mobil 1, Castrol Edge, Shell full synthetic, those are $22.xx/5qt jug in Walmart, what price your distributors can offer?


In Canada, and Saskatchewan surprisingly is located in Canada

, the big retail stores sell synthetic oil at about $50 per 4.4L, 4.78L or 5L jugs at their regular prices. When it goes on sale, it's usually about $30 per jug. Most oil distributors will have their regular price the same as retail "sale" price.

Considering the CAD rate rightnow, 30CAD=22~23USD. Not too bad compared to Walmart retail price ($22.xx) in US.

 

[Garak]

Originally Posted By: Bellinghamster
For mobil 1, Castrol Edge, Shell full synthetic, those are $22.xx/5qt jug in Walmart, what price your distributors can offer?

If you're big enough, you could almost cut that in half; of course, it depends upon package sizes. One large equipment manufacturer and service outlet here, whom I am not permitted to name, gets Delvac 1 ESP 5w-40 for just over half of what I pay, so you're looking at somewhere under $15 a gallon, and that's their regular price. I don't have my sell sheet handy to guesstimate their package size, but I gather they're buying 1200 litre containers.

Usually, the distributors don't offer too much of a difference on pricing until you get into packages larger than 5 gallon pails and/or some very large quantities.