Why is HDEO so cheap?

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As another poster put it, the average HDEO is much better than the average PCMO regarding add packs and base stocks.

The question is why? You are getting more quality for less money. That doesn't make sense.
 
Economies of scale - so much more HDEO is produced due to the size of truck engines, that it is cheaper due to volume.
 
Originally Posted By: jstutz
Im guessing that it is less marketing.


+1. When have you ever seen an HDEO print/tv/nascar/radio ad? That expensive advertising is built into the "household-name" brands.
 
HDEO is for professionals and done as a courtesy to hard working, no nonesense pro's. IDK about basetock being bettr maybe majority group II. Then, You pick up the slack by paying too much for PCMO and fauxsyn!
 
Most HDEO's are 11.50/gal at WM around here so there 2.88/qt vs most name brand PCMO's are 12.50/5qt so 2.5/qt. I dont think HDEO is really much cheaper, just better. There is the Motorcraft 15w40 that is 11.5/5qt which makes your statement correct. It really does seem like you get more for your money with the HDEO is your cliate is okay with it.
 
Originally Posted By: finalyzd
Yea 15w40 royal purple is 14 bucks in my auto zone.


Is this for the gallons? I just checked online and it was 34.99 for my local store. Maybe i should call?
 
I just left Oreilly's and Royal Purple 15w40 was 34 for a 1 gallon jug. I just about fell out but RP is a expensive oil.
 
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Im paying very little per guart for semi syn Mystik JT8 10w30 at the local farm store.

I buy it in 2 gallon jugs for 19.49 a piece.
 
We buy bulk Service Pro 15w-40 CI-4 Plus for a little better than $6 per gallon. Wish it had more moly in it but for that price can't argue complain too much.
 
I see dino HDEOs as a great value. You get a whopping good slug of overall performance for many applications, at a reasonable price.

But, as I always say, everything is depending upon individual conditions. HDEO is not a great buy if you're dumping in your last quart before you trade the equipment to a dealer; I'd use the absolute cheapest house brand stuff in that case. And, I'd never use dino HDEO for 30k miles with a normal filter system.

But for moderate OCIs, with good PM plans, dino HDEO is very hard to beat on a performance/dollar ratio.
 
Ever tried to get cash out of a trucker or even worse: a farmer?
These oil competes in a market were every penny is counted and
the demands for function is very high. This is prolly the
reason for hdeo to be so competetive.
But who buys it as aquart or a gallon? c´mon get a drum or atleast 5 gallon can. Its also usually
cheapest at the farm or trucker store.
 
Why is HDEO so cheap? Additives in general are cheap, the added cost of the extra additives in HDEO vs PCEO is negligible. They are using additives that have been used in motor oil for 40-70 years!
The newer lower SAPS oils are using newer additives that may be more expensive. The S/P requirements for HDEOs are less restrictive than PCEOs, so far, and the newer low SAPS PCEOs may be using more expensive additives; possibly.
What is expensive is base oils. The most "synthetic" HDEO base oil used in North America is Group II+, like Chevron's "Isosyn" used in Delo 400 Multigrade. Most of the very cheapest 15W40s are still Grp.I.
If you want to see what an HDEO costs with an expensive Grp.IV or V synthetic base costs, look at Redline or Delvac 1. The cheapest example of Grp.IV HDEO is Mobil 1 TDT.
Many PCEOs that are 5W30 or 0W20 are Grp.III, or in the case of Mobil 1 and maybe a few others Grp.IV.
I will agree that Grp.II base oils with VIIs like many 10W30s are probably overpriced. How does a PCEO 10W30 compare pricewise with a HDEO 10W30?
I think a good price comparison would be Delvac 1 5W40 vs. Mobil 1 ESP Formula M 5W40, or M1 0W40. Or a Grp.III PCEO with Rotella T Synthetic/T6.

Charlie
 
I will just talk about the majors, and in the Heavy Duty Trucking market, we will just call them the big 3, Shell, Mobil, and Chevron. Three of the toughest competitors there is. All three want the others business. Each uses a different additive, but all are close. All three own their on chemical/additive company and they are good. In their standard premium grade of 15W-40 all three use Group II+ base stocks, and all three perform extremely well. The customer base they cater to do not care about promotions, rebate gimmicks, etc., the customer base cares about three things, performance, service, and what's it going to cost.

Then you have the next tier of HDEO makers like CITGO, ConocoPhillips and all their brands, Castrol, etc., and then comes the speciality oils like Schaeffer's.

The customer wants the same from all of these. Performance, service, and how much.

To make a quality product without charging an arm and a leg for it you have to eliminate something, and that is marketing. Now they do their fair share of advertising in trade journals etc., but you won't see them on TV or a major sponsor at some major race, or sponsoring the Super Bowl etc. What major oil companies spend on marketing their line of PCMO's would boggle your mind.
 
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