Why is oil at Walmart so cheap?

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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.
 
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15 Years ago parts stores not only were competitive on prices, but also had people who knew what they were talking about behind the counter. Now that is the exception rather than the rule. With the changes in cars and the shift away from DIY maintenance, the stores don’t move as many parts in general and can’t afford low-margin on much of anything in the stores. Harvest King is definitely on my list for the Jeep once I thin down some of my stash of Autozone close out oil. Rural King is about 2 miles down the road. Hard to argue with $2/qt oil and chickens in the same store.
 
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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.
Yep, those ‘loss leaders’ have you buying something with zero profit and also buying 11 other items with a profit.
 

BlueOvalFitter

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Supply and demand. I learned that in FREE ENTERPRISE in high school. WM has stores EVERYWHERE. As much as they buy of any one given product they can afford to slash prices due to the low prices they pay for it. And, with the amount of consumers buying said products from WM, it only makes sense; the more they sell, the more they buy. Auto parts stores have a much higher overhead as compared to WM. Another reason why oil is cheaper at WM. There are members here that have a HUGE lump in their throat that they refuse to swallow when it comes to buying oil at WM. They would rather pay upwards to $25, or more, over WM's low every day prices. "I ain't supporting any Chinese sweat shop labor store!" That figure of speech is that lump in their throat. grin
 
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I get good entertainment out of the people who won't step foot in a WalMart, but will buy the same exact goods with a significant markup from Target.
 
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Originally Posted By: Mr Nice
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.
Yep, those ‘loss leaders’ have you buying something with zero profit and also buying 11 other items with a profit.
My mother was big on the idea of driving around to multiple grocery stores to pick up the loss leaders at each place. Of course, she was using up gas as well as putting wear and tear on '70s era cars that needed a lot of maintenance...
 
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Originally Posted By: Mr Nice
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.
Yep, those ‘loss leaders’ have you buying something with zero profit and also buying 11 other items with a profit.
Don't kid yourself WM is sell oil at a loss. The other store are just getting rich off excessive mark up. If you don't believe that look at the price of O'Really stock!
 
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Originally Posted By: JohnnyJohnson
Originally Posted By: Mr Nice
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.
Yep, those ‘loss leaders’ have you buying something with zero profit and also buying 11 other items with a profit.
that [censored] auto parts is double the price of Walmart, they will price match. Show them the price on the Walmart app, Don't kid yourself WM is sell oil at a loss. The other store are just getting rich off excessive mark up. If you don't believe that look at the price of O'Really stock!
 

BlueOvalFitter

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Originally Posted By: Bullwinkle007
People in Walmart don't stare at the oil like us weird folks, they just grab and go. They rather stare at the big screens in electronics
Man, how true is this! You know a BITOG member in WM's oil section. Some are also going through the oil filters looking for the ones without dents. While non members are looking in the filter book for their oil filter. grin
 
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Originally Posted By: edwardh1
Originally Posted By: Patman
One word: volume. Walmart can move a lot more product than those auto parts stores, so they can afford to sell it lower, plus they can get a lower price from the oil companies to begin with (because of the huge amount they will buy)
wrong I dont see many people in the wal mart oil aisle, but lots in and out of parts places
Wrong on your wrong. Walmart has many thousands of stores more than any other oil retailer. They sell 20 times more oil than all other oil retailers, probably combined.
 
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Originally Posted By: BlueOvalFitter
Originally Posted By: Bullwinkle007
People in Walmart don't stare at the oil like us weird folks, they just grab and go. They rather stare at the big screens in electronics
Man, how true is this! You know a BITOG member in WM's oil section. Some are also going through the oil filters looking for the ones without dents. While non members are looking in the filter book for their oil filter. grin
I probably spent 20 minutes picking out oil at WM a couple of nights ago...I can just imagine somebody in the back watching me on a security camera and thinking, "What the he!! is wrong with that guy?"
 
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Weezybabydoll

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We have Runnings farm and fleet stores here but they're selection kinda sucks. They don't sell filters and only sell conventional Valvoline and 15w40 oil. Wish I could shop around more for oil but Walmart is by far my cheapest choice in my area even tho I hate going to trashy Walmart
 

blupupher

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Originally Posted By: CR94
What makes you think Walmart prices are cheap? Check Rural King oil (and battery!) prices. A better question: Why did Advance, for example, quit selling oil at competitive prices, which they regularly did on sale with rebates up until roughly 15 or so years ago? They used to beat Wal-Mart prices consistently. So did Sears, sometimes, and hardware chains. I didn't have to go to Wal-Mart for best prices until maybe about 10 years ago, and then only when not near a Rural King.
What is the price of other oils at Rural King? Sure their house brand is inexpensive, and is a good oil, but many people won't touch it. They walk straight to the Mobil 1 and grab what they need without looking at the price, and change it every 3000 miles.
 
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Quote:
I heard somewhere that the oil and filters sold at Walmart are lesser quality than the higher price ones at other stores hence the lower price. I figured Walmart name is way too big to be selling junk.
Yeah, it's a favorite tin foil hat urban legend conspiracy floated on the internet. Most likely promoted by auto parts stores to deflect from their exorbitant price make ups. And even more than WM selling junk, the major oil companies aren't going to put their name on oil products of inferior quality that happen to be sold at WM. Answer to question given already, volume.
 
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Originally Posted By: Patman
One word: volume. Walmart can move a lot more product than those auto parts stores, so they can afford to sell it lower, plus they can get a lower price from the oil companies to begin with (because of the huge amount they will buy)
I'd add it is a conglomerate too it is the same why you want to get tires at Costco for example, they beat prices of other shops in the field.
 
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At one time it was discussed here by other members about, Walmart having a lesser quality oil in the same containers. Other members stated that to do so, the labels would need to be changed and not just at the bottom of the 5+qt jug where it states, "Made for Walmart*". If other auto parts stores claim that their own oil prices are higher than Walmart due to W*M having a lesser quality oil or different additives, this is against the law or ruling of the API...I'm not sure if I said that correctly! In other words: PYB is PYB is PYB regardless whether it's in a quart bottle, 5 qt jug or 55 gal drum. And the same from store to store to store. W*M, K-Mart, Target, AAP, AZ, PB RK, O'Rly's etc. Same goes for all brand/grade/types(dino or syn/blend or syn or HM) of oils in the specific containers & labeling, across the board. A store can work with an oil company or blender to have the product put into specific sized containers but cannot spec what goes into those containers. This is my understanding. Does anyone know anything different? I am curious! CB
 
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Patman

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Originally Posted By: Miller88
I get good entertainment out of the people who won't step foot in a WalMart, but will buy the same exact goods with a significant markup from Target.
I honestly don't know how Target stays in business. Every Target I've ever been to is a ghost town, and their prices are way higher than Walmart. Their auto section is a joke too, they have barely anything in it. They didn't last very long when they tried opening a bunch of stores up here in Canada. I think within 3 years of coming here, they closed every single store.
 
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Originally Posted By: Patman
Originally Posted By: Mr Nice
Johnny answered this rumor 10 years ago.
I miss Johnny, he hasn't been on here for a very long time. I hope he's alive and well!
+1 Johnny was a good guy.
 
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