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Why is oil at Walmart so cheap? #4701235
03/20/18 09:28 PM
03/20/18 09:28 PM
Joined: Mar 2018
Posts: 30
North dakota
Weezybabydoll Offline OP
Weezybabydoll  Offline OP
Joined: Mar 2018
Posts: 30
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.


2015 F350 Powerstroke
2014 Explorer Sport
2003 5.9 Cummins
95 Escort Shaggin Wagon daily driver
Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701239
03/20/18 09:32 PM
03/20/18 09:32 PM
Joined: May 2002
Posts: 20,778
Oakville, Ontario
Patman Offline
Patman  Offline
Joined: May 2002
Posts: 20,778
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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Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701241
03/20/18 09:33 PM
03/20/18 09:33 PM
Joined: Jun 2009
Posts: 3,694
Chicago, IL
tomcat27 Offline
tomcat27  Offline
Joined: Jun 2009
Posts: 3,694
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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Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701247
03/20/18 09:37 PM
03/20/18 09:37 PM
Joined: Mar 2018
Posts: 30
North dakota
Weezybabydoll Offline OP
Weezybabydoll  Offline OP
Joined: Mar 2018
Posts: 30
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.


2015 F350 Powerstroke
2014 Explorer Sport
2003 5.9 Cummins
95 Escort Shaggin Wagon daily driver
Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701252
03/20/18 09:41 PM
03/20/18 09:41 PM
Joined: Oct 2002
Posts: 36,285
Great Lakes
Quattro Pete Offline
Quattro Pete  Offline
Joined: Oct 2002
Posts: 36,285
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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Re: Why is oil at Walmart so cheap? [Re: Quattro Pete] #4701257
03/20/18 09:49 PM
03/20/18 09:49 PM
Joined: May 2002
Posts: 20,778
Oakville, Ontario
Patman Offline
Patman  Offline
Joined: May 2002
Posts: 20,778
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.

Re: Why is oil at Walmart so cheap? [Re: Patman] #4701267
03/20/18 09:56 PM
03/20/18 09:56 PM
Joined: Sep 2004
Posts: 21,626
Orlando, FL
Mr Nice Offline
Mr Nice  Offline
Joined: Sep 2004
Posts: 21,626
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.

Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701269
03/20/18 09:56 PM
03/20/18 09:56 PM
Joined: Mar 2016
Posts: 1,393
Western S.C. since 1996
CR94 Offline
CR94  Offline
Joined: Mar 2016
Posts: 1,393
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.

Last edited by CR94; 03/20/18 09:58 PM.

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Re: Why is oil at Walmart so cheap? [Re: Mr Nice] #4701276
03/20/18 10:01 PM
03/20/18 10:01 PM
Joined: May 2002
Posts: 20,778
Oakville, Ontario
Patman Offline
Patman  Offline
Joined: May 2002
Posts: 20,778
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!

Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701277
03/20/18 10:03 PM
03/20/18 10:03 PM
Joined: Mar 2018
Posts: 30
North dakota
Weezybabydoll Offline OP
Weezybabydoll  Offline OP
Joined: Mar 2018
Posts: 30
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.


2015 F350 Powerstroke
2014 Explorer Sport
2003 5.9 Cummins
95 Escort Shaggin Wagon daily driver
Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701282
03/20/18 10:07 PM
03/20/18 10:07 PM
Joined: Apr 2012
Posts: 5,141
MA
Wolf359 Online content
Wolf359  Online Content
Joined: Apr 2012
Posts: 5,141
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.

Re: Why is oil at Walmart so cheap? [Re: Patman] #4701283
03/20/18 10:08 PM
03/20/18 10:08 PM
Joined: Jan 2003
Posts: 3,073
Coastal South Carolina
edwardh1 Offline
edwardh1  Offline
Joined: Jan 2003
Posts: 3,073
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


These products are all new every year?? They are a revolution!!! Razor blades, mens shirts, TVs, wiper blades, gutter guards, hearing aids... according to the ads. But also all new last year
Re: Why is oil at Walmart so cheap? [Re: Weezybabydoll] #4701288
03/20/18 10:12 PM
03/20/18 10:12 PM
Joined: Jul 2017
Posts: 293
OKLAHOMA
GMguy84 Offline
GMguy84  Offline
Joined: Jul 2017
Posts: 293
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


05 Silverado Z71 5.3 DELO 400 XLE 10W30/FUG XG3675

01 Suburban 5.3 Mobil 1 HM 10W40/M1-206A

1982 TRANS AM (KITT) Mobil Super 5K HM 10W40/M1-302A
Re: Why is oil at Walmart so cheap? [Re: Patman] #4701293
03/20/18 10:18 PM
03/20/18 10:18 PM
Joined: May 2010
Posts: 9,045
North Carolina
spasm3 Offline
spasm3  Offline
Joined: May 2010
Posts: 9,045
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.


13 elantra 70k 5w30 QSUD
03 chevy avalanche79k synpwr 10w30
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Re: Why is oil at Walmart so cheap? [Re: edwardh1] #4701300
03/20/18 10:31 PM
03/20/18 10:31 PM
Joined: Apr 2012
Posts: 5,141
MA
Wolf359 Online content
Wolf359  Online Content
Joined: Apr 2012
Posts: 5,141
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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