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News For and About Lubricant Marketers
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January 2005
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ARG Offers a 'Major' Difference
When people talk about the "majors" you typically
hear the names of ExxonMobil, ChevronTexaco, Shell-
PQS, CITGO, ConocoPhillips, Valvoline, Castrol, and
Sunoco. Technically, these are called the majors
because they are fully integrated with refinery and
blending assets that produce base stocks through to
lubricants.
But by this definition, there is another
major in the U.S. market, and from what Jobbers
World has been hearing, it's a major that lubricant
marketers are saying some very good things about.
It's also a major that some marketers feel offers an
excellent alternative to the "other majors." The major
they are speaking about is American Refining Group,
Inc. (ARG), and the major differences are in its
people, programs and position in the market.
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'Lube Buyer News'
Free Listing!
Petroleum Trends International announces the launch
of Lube Buyer News. According to Thomas F. Glenn,
president of Petroleum Trends Intl., this is a no-
nonsense publication designed to assist lubricant end
users to buy smarter and buy better.
In addition to the print copy of Lube Buyer News,
there is an online Lube Buyer News portal
(www.lubebuyer.com) . A key feature of the portal is
an online directory of lubricant suppliers. In advance
of the first issue's publication, lubricant marketers will
have a limited time opportunity to be listed in the
directory at no charge. IT'S FREE!
The premier issue of the Lube Buyer News will be
published next month. According to Glenn, it will
initially be distributed to roughly 10,000 select
lubricant buyers in the U.S. market, including on- and
off-road commercial fleet operators, industrial
lubricant end-users, metalworking shops, new-car
dealers, fast-lube operators, auto parts stores, truck
stop operators, and other large buyers of lubricants
and coolants.
Lube Buyer News
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ExxonMobil's Distributor Model of the Future?
As discussed in last month's issue of Jobbers World,
word on the street is that ExxonMobil is spending a
good deal of its time and energy on what is being
called the "Distributor Model of the Future," or DMF.
It's not necessarily a new model. Instead, it's a
model reportedly patterned on the dealer and
distributor models used by Caterpillar and Anheuser-
Busch to roll-up and leverage greater control over
their fragmented and inefficient distribution networks.
These models share a common thread in that they
are about building a highly efficient and cost
effective distribution system comprised of exclusive
dealers/distributors dedicated to a single brand.
Although not without pain, this model worked well for
Caterpillar and Anheuser-Busch. It is a proven model
for success. Subscribe to Jobbers World to find out
more and explore how this model might fit with
lubricant distributors in the U.S. market.
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Finding the Green in Recycled Coolant
An estimated 2 billion pounds of antifreeze/coolant
concentrate was manufactured in North America in
2004. Nearly 80% of the total was aftermarket
product used in the cooling systems of cars and
trucks. The price of this aftermarket coolant ramped
up sharply in 2004 and is now approaching $10.00 a
gallon at the retail level. As discussed in the
November issue of Jobbers World, the primary reason
for the increase is robust demand for ethylene glycol
(EG) in the Asian textile market and a reduction in
global refining capacity. The result of these opposing
forces continues to be a very tight supply of
ethylene and propylene glycol and inflated prices for
coolant, which is nearly 95% glycol.
Although lubricant marketers usually have little
choice but to pay the higher price for coolant and
pass the increases on to their customers, they do
have one option that can help them soften the blow,
and even capture a competitive edge. That option is
to bring recycled coolant into their product line.
Hear
what the experts have to say about how marketers
can save money and avoid the pitfalls with recycled
coolants.
Full story
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