Walmart mark up

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Before working for Walmart I would never have guessed how much mark up there is in some items. Examples.

Replacing a valve stem while putting a new tire on in the TLE. Walmart's cost 0.03, your cost $3.00.
Supertech 5w-30 singe quarts. 50% mark up (This one really surprised me)
Pennzoil 5w-30 Synthetic 30% mark up.
Pennzoil 0w-40 Synthetic 25% mark up.
Valvoline 5w-30 Synthetic 27% mark up.
Slim tire gauge: 92% mark up.

Meanwhile those clearance items. Usually -30 to -50% mark down off what Walmart gets it.
Would have never guessed.
 
Go to Best Buy, the TV or computer you buy has very little markup, but the HDMI cable, surge protector and extended warranty make the profit.
 
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.
One of my friends in HS has grandfather that runs a gas station. He told me its about .02-.03 a gallon mark up. It was the oil changes/tires/flat repairs that made the money.
 
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.


That is correct. A friend is a manager at a Shell station and she told me they make maybe .10 a gallon profit.
 
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.

+1
 
I Occasionally fill in at my store's gas station, and i can tell you that at times, we are selling gas BELOW cost to stay competitive. its not often, but it does happen..
 
Costco has a pricing scheme that tells you a bit about the product.

Price ending in 9 and in 9 cents is a regular 14% item. $29.99

Price ending in a 7 as in 7 cents is marked down to get rid of it. $22.77

Price ending in 0 as in 0 cents is just marked down. $20.00

If there is an asterisk (*) in the upper right corner of the price tag it's discontinued and may or may not be marked down.
 
What is the markup on Fram filters?
laugh.gif
 
A family friend years ago owned several gas stations, very wealthy people. They also used to say they made less than 10 cents per gallon however because of the volume of gas that they sold per day, that’s what helped pay for the big house, nice cars, and numerous vacations.
 
I was talking with a pawn shop employee over the holidays and he said when someone pawns anything they usually shoot for 100-150% of the item on re-sale but that's not what they make thier money on it's really the 35-40% interest they shoot for. If the customer loses the item that is just sweetner to sale the item for profit.
I never saw so many pawnshops until I moved to Florida.
Crazy down here now I know why.
 
Originally Posted By: FordBroncoVWJeta
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.
One of my friends in HS has grandfather that runs a gas station. He told me its about .02-.03 a gallon mark up. It was the oil changes/tires/flat repairs that made the money.


Its more like $0.07 to $0.10 per gallon. Credit card fees eat up that profit.

Thus why stations that sold only gas had to convert to a gas station/deli or go out of business.

And in many states the constant upgrade required of the pumps and tanks to meet DEP rules is costly.
 
Originally Posted By: FordBroncoVWJeta
Before working for Walmart I would never have guessed how much mark up there is in some items. Examples.

Replacing a valve stem while putting a new tire on in the TLE. Walmart's cost 0.03, your cost $3.00.
Supertech 5w-30 singe quarts. 50% mark up (This one really surprised me)
Pennzoil 5w-30 Synthetic 30% mark up.
Pennzoil 0w-40 Synthetic 25% mark up.
Valvoline 5w-30 Synthetic 27% mark up.
Slim tire gauge: 92% mark up.

Meanwhile those clearance items. Usually -30 to -50% mark down off what Walmart gets it.
Would have never guessed.


Having been in retail nothing there surprises me. Those mark-ups on oil are probably higher than your auto parts store gets and still cheaper because WM buys in such high volume it gets better pricing. If you want a real surprise search a little for the mark-up on clothes, jewelry, eyeglasses, furniture.
 
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.


Really most stations pump gas at 10 to 40 cents a gallon than our local Costco here. Costco isn't losing money on their gas!

On diesel the difference is 30 to 60 cents a gallon.
 
Last edited:
Originally Posted By: bdcardinal
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.


That is correct. A friend is a manager at a Shell station and she told me they make maybe .10 a gallon profit.




I wonder how much profit there is on air and water. I've seen them charge as much as $1.50 at stations across the desert.
 
I don't understand the big controversy here in regard to Walmart (or any retailer) having a markup. What would you expect them to do? Are they supposed to sell you something and make no profit on it? And it's not important what amount the markup is....what is more important to the consumer is how the final price compares to other stores. If you find a better deal somewhere else, you are free to shop there.
I'll never understand why making a profit is somehow evil.
 
I didn't realize how much some things were marked up until I got a job at one of the major auto parts store chains. The retail price vs employee discount price is often significant. $140 battery for $60. $13 tire gauge for $4. $70 ignition coil for $12. Even more significant when you count sales tax is 9.x% here, the savings add up there too.

However, on some stuff, I suspect our company doesn't negotiate good deals on. Oil, for example, is still a better deal at Costco/Amazon/Walmart usually. For example Chevron Supreme at Costco is half the price. Needed a speed sensor for mom's 95 Accord, $11 on eBay vs retail at $90 or employee $50 in our store. Of course I bought the eBay one and it worked fine.

I kind of understand the markups in a way. Let's consider this. If you buy your car battery/headlight bulbs/oil at Walmart, you'll also buy groceries, clothes, soda at the machine by the checkout, etc. and all they do is scan the item. At the auto parts store, we look up the right bulb/battery/oil for you, and maybe even help install it (or pour it in if we're talking about a quart of oil) - wastes way more of our time than simply working at Walmart and scanning the item and having them insert their credit card.
 
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Originally Posted By: andrewg
I don't understand the big controversy here in regard to Walmart (or any retailer) having a markup. What would you expect them to do? Are they supposed to sell you something and make no profit on it? And it's not important what amount the markup is....what is more important to the consumer is how the final price compares to other stores. If you find a better deal somewhere else, you are free to shop there.
I'll never understand why making a profit is somehow evil.


It's not clear whether the OP thinks the mark-ups are too high or not enough. The retail price of any item is driven by any number of factors and it's absolutely normal that some are high and some are lower. Not sure if the OP thought everything would be marked up a straight low percent through the entire Walmart but that's not how it works.

There really isn't a profit is evil vibe in this thread, more people telling what they know or heard.
 
Originally Posted By: FordBroncoVWJeta
Before working for Walmart I would never have guessed how much mark up there is in some items. Examples.

Replacing a valve stem while putting a new tire on in the TLE. Walmart's cost 0.03, your cost $3.00.
Supertech 5w-30 singe quarts. 50% mark up (This one really surprised me)
Pennzoil 5w-30 Synthetic 30% mark up.
Pennzoil 0w-40 Synthetic 25% mark up.
Valvoline 5w-30 Synthetic 27% mark up.


Now think about how much the markup is at an auto parts store where oil and filters are more expensive than WalMart.
 
Originally Posted By: FordBroncoVWJeta
Originally Posted By: Chris142
I heard that gas stations dont make much on gas. Its the sodas and hot dogs that pay the bills. Except for chevron thats $.60/gallon more than any other station.
One of my friends in HS has grandfather that runs a gas station. He told me its about .02-.03 a gallon mark up. It was the oil changes/tires/flat repairs that made the money.


Agreed, gas has no money but it attracts/brings customers. Hotdogs, fountain drink, coffee and if there's a workshop - those are money making machine.

Otherwise, everything else there is premium price too
wink.gif
 
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