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#4701235 - 03/20/18 09:28 PM Why is oil at Walmart so cheap?
Weezybabydoll Offline


Registered: 03/12/18
Posts: 30
Loc: North dakota
I'm sure this has been answered before but couldn't find an article about it. But anyway why are name brand oils and filters at Walmart so much cheaper than at an auto parts store such as O'Reilly's? I can buy 2-5 quart jugs of let's say Valvoline full synthetic oil for [censored] near the price of one at a parts store. Motorcraft filters for one are also a few dollars cheaper.
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#4701239 - 03/20/18 09:32 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
Patman Offline



Registered: 05/27/02
Posts: 20268
Loc: Oakville, Ontario
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)
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#4701241 - 03/20/18 09:33 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
tomcat27 Offline


Registered: 06/25/09
Posts: 3541
Loc: Chicago, IL
two reasons:
- their purchasing power: they buy TONS of it and can (somewhat) dictate the price point to their suppliers
- they can operate on lower margins because they sell a large variety of products and are not reliant on one single product line for revenue
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#4701247 - 03/20/18 09:37 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
Weezybabydoll Offline


Registered: 03/12/18
Posts: 30
Loc: North dakota
Thanks for the quick replies. 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.
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#4701252 - 03/20/18 09:41 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
Quattro Pete Offline


Registered: 10/30/02
Posts: 35565
Loc: Great Lakes
Originally Posted By: Weezybabydoll
I figured Walmart name is way too big to be selling junk.
There is plenty of junk being sold at Walmart, but oil is the same as everywhere else.
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#4701257 - 03/20/18 09:49 PM Re: Why is oil at Walmart so cheap? [Re: Quattro Pete]
Patman Offline



Registered: 05/27/02
Posts: 20268
Loc: Oakville, Ontario
Originally Posted By: Quattro Pete
There is plenty of junk being sold at Walmart, but oil is the same as everywhere else.


Absolutely true. There have been rumors for years that Walmart got cheaper versions of the oils they carry, but if that were true we would have figured it out on here when we do our used oil analysis. But we can clearly see that the additive package in the oils we buy from Walmart are identical to those same oils bought elsewhere.

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#4701267 - 03/20/18 09:56 PM Re: Why is oil at Walmart so cheap? [Re: Patman]
Mr Nice Offline


Registered: 09/12/04
Posts: 20915
Loc: Orlando, FL
Originally Posted By: Patman
Originally Posted By: Quattro Pete
There is plenty of junk being sold at Walmart, but oil is the same as everywhere else.


Absolutely true. There have been rumors for years that Walmart got cheaper versions of the oils they carry, but if that were true we would have figured it out on here when we do our used oil analysis. But we can clearly see that the additive package in the oils we buy from Walmart are identical to those same oils bought elsewhere.


Johnny answered this rumor 10 years ago.

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#4701269 - 03/20/18 09:56 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
CR94 Offline


Registered: 03/20/16
Posts: 976
Loc: Western S.C. since 1996
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.


Edited by CR94 (03/20/18 09:58 PM)
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#4701276 - 03/20/18 10:01 PM Re: Why is oil at Walmart so cheap? [Re: Mr Nice]
Patman Offline



Registered: 05/27/02
Posts: 20268
Loc: Oakville, Ontario
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!

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#4701277 - 03/20/18 10:03 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
Weezybabydoll Offline


Registered: 03/12/18
Posts: 30
Loc: North dakota
Never heard of rural King. I live in North Dakota where we don't have alot of stores besides the basics such at Walmart, Napa, O'Reilly's etc.
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#4701282 - 03/20/18 10:07 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
Wolf359 Offline


Registered: 04/27/12
Posts: 4486
Loc: MA
Originally Posted By: Weezybabydoll
Thanks for the quick replies. 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.


I wonder where you read that. That's a pretty common line when people can't compete and it's the only thing they have left to knock the competition.

Basically Walmart is the largest retailer by far in the US. In 2014 they did 343 billion in sales. The number two retailer was Kroger with 103 billion, followed by Costco at 80 and Home Depot at 75. Get the picture? It's really about volume.

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#4701283 - 03/20/18 10:08 PM Re: Why is oil at Walmart so cheap? [Re: Patman]
edwardh1 Offline


Registered: 01/17/03
Posts: 2850
Loc: Coastal South Carolina
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
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#4701288 - 03/20/18 10:12 PM Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll]
GMguy84 Offline


Registered: 07/14/17
Posts: 117
Loc: OKLAHOMA
Rural King is a farm store

Luckily, I have a atwoods few miles down road and they sell the CHEAPEST oil I have EVER seen. Harvest King(Citgo) oil

$2.50 a QT for FULL SYN or $11 for 5QT jug

The HM semi-syn blend is $7.99 5qt jug or $1.69 a qt

Wish i would have discovered Atwoods long ago, Would have saved me $$$ on oil VS Wal-[censored]


Dave
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#4701293 - 03/20/18 10:18 PM Re: Why is oil at Walmart so cheap? [Re: Patman]
spasm3 Offline


Registered: 05/30/10
Posts: 8438
Loc: North Carolina
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!


I kept hoping he might come back. But i guess not.
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#4701300 - 03/20/18 10:31 PM Re: Why is oil at Walmart so cheap? [Re: edwardh1]
Wolf359 Offline


Registered: 04/27/12
Posts: 4486
Loc: MA
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


I'm not sure that's a good metric for determining how much they sell. They can have low prices and make it up in volume. Those smaller auto parts chains like Advance Auto had less than 10 billion in revenue, Autozone had a tad under 11 billion. They're small potatoes compared to Walmart. Try reading some 10k's.

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