If you're a relatively unknown mfg you have to go and audition your product to Wally's buyers in Bentonville (fwiw). If you're lucky enough to get shelf space, you stay on the shelf by your product moving out the door. WM is by in large a volume retailer, they make money the more a product moves and not less. Hence why you see them do rollbacks and closeouts. If both WM and Amsoil thought they could make a worthwhile profit compared to other oil related offerings from other mfgs occupying similar shelf space in the automotive section, they would. Lss, it's not profitable for one or the other...or both.
I'm sure WM has reams of data to support it's buyers decisions. They've got the value of shelf space down to a science.
Originally Posted by kschachn
I don't think it is quite as nefarious as some make it out to be, I believe the marking method they have now was probably the most effective for the time it was introduced. But things have changed in retail and now it likely somewhat less effective than it used to be. Besides, being a small blender there's no way they can compete on cost with a major oil company, so when viewed on the shelf it is at an immediate disadvantage to their competitors based on price alone - just look at the Royal Purple example that was already mentioned.
Amsoil, Royal Purple, Redline and others just do not have the name penetration to generate sufficient sales in mass marketing. It's going to lose every time on the shelves at Walmart.
+1 this👆
I'm sure WM has reams of data to support it's buyers decisions. They've got the value of shelf space down to a science.
Originally Posted by kschachn
I don't think it is quite as nefarious as some make it out to be, I believe the marking method they have now was probably the most effective for the time it was introduced. But things have changed in retail and now it likely somewhat less effective than it used to be. Besides, being a small blender there's no way they can compete on cost with a major oil company, so when viewed on the shelf it is at an immediate disadvantage to their competitors based on price alone - just look at the Royal Purple example that was already mentioned.
Amsoil, Royal Purple, Redline and others just do not have the name penetration to generate sufficient sales in mass marketing. It's going to lose every time on the shelves at Walmart.
+1 this👆
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