News For and About Lubricant Marketers
Lubricant Marketers Choke on Price Increases
Majors Add New Meaning to Tax Day
Last week was ugly for most lubricant distributors
and the reason why is that within a time span of
just two days (Thursday and Friday); all but one of the
majors increased its price of finished lubricants
$0.28 to a whopping $0.64 a gallon. The average
bump was about
$0.35 a gallon. And the price increases didn't stop
with the majors. One of the largest independent
lubricant manufacturers in the county also announced
a price increase of $0.22 a gallon.
Beyond the style, the substance of the price increase
notifications was all about the same. They said the
increases are in response to the "rising cost of
base oil." One major went even further and attributed
its increase on the higher cost of base oil, steel
and plastic packaging, and the higher cost of
additives. Sounds plausible, but is it true? Have
major's cost of goods sold gone up that much since
the last price increase marketers saw for lubes?
Certainly the price of base oil alone hasn't.
Subscribe to Jobbers World for the full story.
CONOCOPHILLIPS AND GOODYEAR ANNOUNCE AGREEMENT TO OFFER KENDALL MOTOR OIL PRODUCTS NATIONWIDE
Continues to prove it's the one to Watch!
ConocoPhillips Company, announce today an agreement
with Goodyear to supply the Kendall GT-1 branded
lubricants line, as well as automotive transmission
fluids, gear oils and greases, to a nationwide
network of 1,800 Goodyear Gemini tire and auto
service outlets. The agreement, effective March 1,
2005, enables Goodyear to feature Kendall GT-1 Full
Synthetic, Synthetic Blend and High Mileage Motor
Oils to its customers through the Goodyear Gemini
oil change program.
"We are very excited to have been selected as
Goodyear Gemini's lubricants supplier," said Jon
Burlingame, tire store segment leader,
ConocoPhillips Lubricants. "This relationship
brings together two well-respected brands with a
long history of offering superior products and
services. This agreement will allow Goodyear Gemini
to provide tremendous quality and value to its
customers by offering products such as Kendall's
recently upgraded synthetic blend oils that are
marketed in the conventional motor oil arena."
"For consumers, our agreement with ConocoPhillips
represents our efforts to secure competitive pricing
and quality Kendall-branded motor oil, which fits
our model of offering reliable service at our Gemini
locations coast-to-coast," said Mark Boswell,
Goodyear's Gemini Service Sales Manager.
As an added benefit from this new relationship,
ConocoPhillips Lubricants Marketers servicing the
Goodyear network have the opportunity to gain
potential additional product sales in the course of
selling Kendall lubricant products into Goodyear
DM2 SOFTWARE INTRODUCES NEW INTERFACE
DM2 introduced an interface between its product and
ConocoPhillips' order system that automates purchase
orders, buy-backs and supplemental allowances for
ConocoPhillips jobbers. DM2 estimates that the
interface will save the jobber's accounting staff a
minimum of one day per week, while increasing
accuracy, by eliminating duplicate entry of
information into both the DM2 and ConocoPhillips
"Purchase orders and buybacks consume a tremendous
amount of time for the jobber's accounting staff,"
said Carl Dalton, DM2's vice president of sales.
"Likewise, it's very time consuming to analyze the
profit margins for individual customers. It's a
conservative estimate that the interface between our
product and ConocoPhillips will save at least one
day a week in accounting staff time, while reducing
the possibility of errors."
For more information about the interface between DM2
Software and ConocoPhillips' order system, contract
DM2 Software at 800-866-5151, firstname.lastname@example.org.
Pennzoil Introduces the Super Jug!
Take a look. Its true, Pennzoil is now marketing its
passenger car motor oil in a big new
six-quart jug; the Superjug. According to promotions
for the jug, when you buy five quarts in the
Superjug you get one
free. The only question on the minds of consumers
Jobbers World surveyed about the jug is "what do you
do with the extra quart after you change the oil?"
Other than that, it seems like a deal at $9.99 a jug.