Why is oil at Walmart so cheap?

[JohnnyJohnson]

Originally Posted By: BlueOvalFitter
Originally Posted By: JohnnyJohnson
Originally Posted By: BlueOvalFitter
Originally Posted By: Weezybabydoll
Nothing wrong with Quaker state oil. Pretty sure it's a sub division of Pennzoil if I remember right. But there are alot of ppl who claim PZ oil creates sludge even tho I've never had problems when using it.

Yes it DID, back in the '70's.


Only 50 years ago?

I can't go back THAT FAR! But, I do remember about 1975-76. My dad used PZ SAE 30 wt. to break in engines. But, he always told me,"Son, when you start working on your own engines, don't use Pennzoil and QS to run in your engines." The proof was the '72 Gran Torino he bought from my uncle. He used both of those oils and it showed in the 429 sludge monster in the GT. Not changing it often enough contributed to it as well.


LOL well I was putting Pennzoil in my 1969 Chevelle SS in 1969 and had been home from the service for just about a year. I changed my oil every 3000 and never had a problem.

 

[BlueOvalFitter]

Originally Posted By: JohnnyJohnson
LOL well I was putting Pennzoil in my 1969 Chevelle SS in 1969 and had been home from the service for just about a year. I changed my oil every 3000 and never had a problem.

Like I stated, my uncle would NEVER follow any kind of maintenance schedule on his vehicles. I remember my grandfather giving him a really good tongue lashing about spending all his money on hot rods and never taking care of them. At 12 years old, it was weird seeing my grandfather talk to my uncle like that, even though my uncle was married with 2 young girls.

 

[HondaBroMike]

12.44 for a 5 gallon jug, Motorcraft 5w.20. Those were the days.

 

[RoadRaceJosh]

Originally Posted By: HondaBroMike
12.44 for a 5 gallon jug, Motorcraft 5w.20. Those were the days.


5-gallons is a pail, not a jug.

 

[BlueOvalFitter]

Originally Posted By: Joshua_Skinner
Originally Posted By: HondaBroMike
12.44 for a 5 gallon jug, Motorcraft 5w.20. Those were the days.


5-gallons is a pail, not a jug.

Jug, pail, tomato, tumotto..........it's all the same.

 

[SatinSilver]

Originally Posted By: HondaBroMike
12.44 for a 5 gallon jug, Motorcraft 5w.20. Those were the days.


Now it's about .50 within the price of QS full synthetic.

 

[SatinSilver]

Originally Posted By: BlueOvalFitter
Jug, pail, tomato, tumotto..........it's all the same.

Good to see you posting Blue.

 

[Gimpy1]

Originally Posted By: edyvw
Take into consideration guys that maybe Wal mart is loosing money on some oil products. However, the idea is that you will go to pick up oil and end up with 10 more stuff for the house.
I go to Wal mart to buy Castrol 0W40 and my wife is: hey, since you are going there can you also pick up 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. By the time I get out of Wal mart, 5qt jug of Castrol cost me $160.


Exactly. That is why this is Walmart business model. The hardest this for a retailer is to get the customer IN the store. Once the customer is in the store they are a captive audience, if they can get EVERYTHING they need in one stop then selling some items at a loss is not a big issue since they more than make it up by selling items with a bigger mark up. Also remember as the worlds largest retailer Walmart has the ability to demand and set wholesale price. So Walmart can say to Mobil (or anyone else) if you want me to stock your product in MY store you will sell the product to me at this price, and Walmart will guarantee to buy X million amounts of cases or whatever. Normally the wholesaler or manufacturer sets the price, however in 99% of cases involving Walmart, it's Walmart that sets the price directly from the manufacturer since they no longer use distributors. A lot of companies hate the strong arm tactics that Walmart uses but have to do it the Walmart way or risk not having their products in Walmarts stores.

 

[AZjeff]

Originally Posted By: JohnnyJohnson


Don't kid yourself WM is sell oil at a loss.


I don't agree with you much Mr. JJ, but on this I do. WM has such buying power they can sell lots of items for less than other companies can buy them for and still make the profit they want. First hand experience with this.

 

[Garak]

Bingo. I've seen even their sale pricing, and I do know what some companies smaller than Walmart buy their oil for. Walmart is still making a handsome profit, no matter what they're charging. When a medium sized business here gets synthetic HDEO at around $3 a litre, I know Walmart is paying less than that, still.

 

[CR94]

So is Rural King paying as much for Harvest King (Citgo) synthetic they sell for $10/5qt as Walmart pays for Super Tech they sell for $17? I'm guessing there's a big markup on the Super Tech.

 

[BlueOvalFitter]

Originally Posted By: SatinSilver
Originally Posted By: BlueOvalFitter
Jug, pail, tomato, tumotto..........it's all the same.

Good to see you posting Blue.

Thank You, Sir.

 

[PimTac]

Originally Posted By: BlueOvalFitter
Originally Posted By: Joshua_Skinner
Originally Posted By: HondaBroMike
12.44 for a 5 gallon jug, Motorcraft 5w.20. Those were the days.


5-gallons is a pail, not a jug.

Jug, pail, tomato, tumotto..........it's all the same.

If they had only had jugs during my time.

 

[nascarnation]

If you've ever visited WM headquarters in Bentonville, you'll get some insight into how they succeed. Most of the buildings are sheet metal. The actual HQ office building looks like a state prison. It's easy to see when they bring in mfgr sales reps, the word is "we don't waste any money here, and you're gonna give us a price that we like"