Wal-Mart wants to sell ethanol

[Steve]

Is this a good idea? Would you purchase ethanol from Walmart if they made it available to you? How would this effect your business?

Wal-Mart wants to sell ethanol (http://money.cnn.com/2006/08/08/news/companies/pluggedin_gunther.fortune/index.htm) - Only about 800 service stations in the United States, out of a total of 168,000, pump E85. There's not a single E85 pump, for example, in all of New England.

You won't be surprised to learn that the big oil companies are not, as a rule, interested in selling E85.

But Wal-Mart (Charts) is. The giant retailer is considering selling ethanol at the eight stations that it operates at Wal-Mart Stores and at about 380 more that it runs as part of its Sam's Clubs division.

It could also decide to sell ethanol in a partnership with Murphy Oil Corp. (Charts), which operates about 946 gas stations in Wal-Mart parking lots, and there's no reason why Wal-Mart couldn't sell E85 - which it calls "America's Fuel" - at the rest of its 3,000 U.S. stores.

[tiedeman]

I would love more alternative fuel. I was just down at Sams Club this past Friday, and while gas was $3.19 up here (I am approx 30 miles away), if you use your sams card you get gas for $2.94 a gallon.

I used to be against the whole Walmart thing, but now I am actually for Walmart. They care about the consumer and trying to save money for the consumer. Do they hurt small businesses...no I personally don't think that they do. I actually think that they are great for competition because they force the guy marking up items 200%, to lower the prices and mark them up 50% instead.

I watched a thing about WalMart on tv a little while ago and the reason that they offer things so cheap is because:

1. They streamline everything. Once you check out at the register, that product number is not only sent to their distribution centers notifying them of the sale and the need to restock, but also to the suppliers as well for the suppliers can see in real time what is selling at what store. That is just amazing.

2. They have cost their overhead costs big time. Not even the CEO of the company has a nice office. It's still just wood panel.

3. They push their suppliers to provide a lower priced item for their stores. They basically tell the supplier, "hey, if you can get it at $12.00 instead of $14.00, we will buy them from you."

Have they caused some businesses to go out of business because they could not lower their prices, yes I feel they have, but the companys that did lower their prices are making huge profits.

[Steve]

Good points.

Does anyone have any idea the difference in price between gas and ethanol?

[tiedeman]

It verifes on the area: Some areas I found it 60 cents cheaper than gas, while others only 20 cents cheaper per gallon