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Published by Petroleum Trends International, Inc. For Lubricant Marketers
July 18, 2005

Greetings!

Jobbers World Online is a free e-publication provided as a service to lubricant distributors, manufacturers, and suppliers. In addition to this publication, Petroleum Trends International, Inc. publishes a monthly Jobbers World Newsletter. The print newsletter is a fee-based publication available only by subscription.

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in this issue
  • Another Price Increase - "The Majors are Like Sheep; when one moves the others usally follow"
  • Dunlap Mellor & Co., Inc. Acquires Fritch Lubricants
  • NOW AVAILABLE! The Lubricant Marketer Directory

  • Another Price Increase - "The Majors are Like Sheep; when one moves the others usally follow"

    As noted in last weeks JW News Brief, ExxonMobil advised its marketers on June 29/30 there would be yet another price increase effective August 1. This increase pushes the marketer buy-in price for ExxonMobil conventional lubricants up by 6% and synthetics up by 3%.

    But beyond questioning the reason for the price increase, the ExxonMobil marketers Jobbers World spoke with said they had several other more pressing concerns on their minds about the increase. The first being the competitive response and how this impacts an ExxonMobil marketer's ability to go back to its customers only two months after they told them about the last price increase to tell them about the next. And to add insult to injury, they say that, whereas usually a marketer gets 45 days to break the bad news to its customers about price increases, in this case, they realistically have less than 30 days when you factor in the holiday weekend.

    So how is the competition responding?

    In the words of most lubricant marketers Jobbers World spoke with about this, "the majors are like sheep, when one moves the others usually follow." They appear to be right.

    Although it looked for a few days like the competition might actually stand this one down, they didn't. Chevron and ConocoPhillips were the first to follow. Chevron's letters went out the morning of July 14th announcing a price increases of 5% to 7% effective August 17. And while most were turning off their computers for the day and getting ready to go home on July 14, ConocoPhillps sent out its notification that it would be raising prices 6% effective August 15.

    If history repeats itself, there is a high probability there will be additional increases by the time the sun sets. We will keep you posted. And once again, Jobbers World will be taking an in-depth look at the last year of finished lubricant price increases and trends in the August print issue.

    Also... don't miss Jobbers World's in-depth series of articles on buybacks/DFOA! We tell it like it is. No fluff, no bias, no smoke and mirrors... Get the facts on buybacks!


    Dunlap Mellor & Co., Inc. Acquires Fritch Lubricants

    Barry S. Mellor, III, president of Dunlap, Mellor & Co., Inc, located in Aston, Pa, has announced the acquisition of Fritch Lubricants of Bethlehem, PA.

    Dunlap, Mellor & Co., Inc., one of the largest ConocoPhillips industrial lubricants distributors in the country, welcomes the new branded products brought to us through this transaction with Fritch Lubricants. The new line will include Citgo, Cincinnatti Milicron, Houghton International and Quaker Chemical.

    According to Meelor, the Dunlap, Mellor's philosophy and business ethics parallel Fritch Lubricants in its commitment to service excellence.


    NOW AVAILABLE! The Lubricant Marketer Directory

    Finally! A directory with information on lubricant distributors, manufacturers, and their suppliers. All in One!

    The most comprehensive directory available on the US lubricants business. Includes 282 pages of contact information and brand representation for over 2,000 lubricant marketers. A must have for publications for anyone buying or selling in the lubricants business.


    The First Truly Independent Conference for and about Lubricant Distributors!
    Reserve your space today on the Trade Show Floor. A prime section of the Trade Show Floor has been set aside for majors and independent lubricant manufacturers, additive suppliers, oil analysis laboratories, equipment manufacturers, software vendors, and others interested in doing business with U.S. lubricant marketers/jobbers. This is a unique opportunity for suppliers to show the lubricant distributors what they have!

    To make sure you have a booth at the Lube Center of the Trade Show, or for more information, contact Robin Rinehart at 916-646-5980, or via e-mail at: rinehart@cioma.com.

    The lubricant distributor track of the conference and Trade Show is specifically for and about lubricant distributors.

    It will provide POC attendees with independent insights and information on such issues as: The state of the US lubricant distribution business and its future, Managing costs and optimizing efficiencies for lubricant distributors, Growth through acquisition, Success at private labeling, Benchmarks in lubricant distribution, Sharing the costs with cooperative buying

    Find out more....
    Quick Links...

    Lubrizol K2M - The Industry's Most Innovative Lube School

    Pacific Oil Conference

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