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Shell Sweetens Jiffy Lube Deal
JW Unveils MarketPlace
Classifieds

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February 15, 2011

JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS

 

The First and Only Independent Newsletter to Focus on Lubricant Distributors.

Your needs, your concerns, your outlook. No bias, no fluff and no punches pulled. Whether it's buy backs or brand battles, allocation of co-op ads, operating costs or turf wars, Jobbers World keeps you on top of the issues that matter to YOU: The Lubricant Marketers!



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Shell Sweetens the Deal for Jiffy Lube     

According to JobbersWorld's sources, Shell launched a program last week that is very aggressive in its efforts to retain its business with its Jiffy Lube franchisees.  For those that don't know, Jiffy Lubes are not required to sell Pennzoil products. This is because Jiffy Lube agreements are tied to service, not products. As such, Jiffy Lubes have the option to take on other lubricant brands when their supply agreements with Shell run out.

 

In an effort to help assure such brand abandonment does not occur when contracts expire, word on the street is that Shell is now sweetening the deal to encourage Jiffy Lubes to stick with the Shell family of brands. From what JobbersWorld has learned, this encouragement includes two key elements.  

 

The first is an indexed price. This means the price Jiffy Lube franchisees pay for Shell lubricants will go up or down based on an index. So rather than agreeing to pay a set price over the terms of the contract, regardless of what happens to the price of base oils and additives, the new contracts will be pegged to an index. As a result, the price floats based on an index which is presumably tied to the cost of goods.

 

The second carrot offered is said to be a 1% reduction in Jiffy Lube royalty fees. This can represent big bucks for most franchisees.  

 

So what do Jiffy Lube franchisees have to do to enjoy these benefits? From what JobbersWorld has learned, its fairly simple. They must agree to sign or renew a "long-term contract" whereby Shell lubricants account for 100% of the franchisee's bulk purchases and 85% of it packaged goods purchases.   

 

From JobbersWorld's perspective...     

It will be interesting to see how this plays out, especially the part about indexing lubricant prices. Because if this becomes a trend, it may not be long before lubricants move further into the commodity space. In addition, this move sends a strong message that Shell is committed to its relationship with Jiffy Lube and assuring Shell's consumer automotive lubricant brands maintain a leadership position in the market.

 

In an effort to learn more, JobbersWorld went right to the source. Here is what Shell told JobbersWorld:

 

SOPUS Products and Jiffy Lube recently unveiled a comprehensive new program that provides a platform to help drive growth and sustainability for our franchisees, JLI and SOPUS Products.

  • It is voluntary program for Jiffy Lube franchisees and designed to help grow customers, help reduce costs and help grow the business.
  • The program brings together and leverages the power of two of the leading brands in the industry, Jiffy Lube and Pennzoil.
  • It is an extension of our continuing commitment to uphold the values Jiffy Lube was founded on: convenience, speed and quality service for our customers.
  • We are not releasing any specific information about the program at this time.

JobbersWorld Unveils New MarketPlace For Hiring, Buying, Selling and More!  











JobbersWorld launched a new MarketPlace feature to its website and JobbersWorld Online News publication. This feature provides opportunities to list jobs, sell product inventory and used equipment, list businesses for sale, and trade in the lubricant distribution space.

"This is something our readers have been asking about for some time, says Thomas Glenn, Publisher of JobbersWorld. According to Glenn, "The JobbersWorld MarketPlace is way for our readers to get the word out about career opportunities/jobs, sale of inventory and used equipment, and more." Further Glenn adds, "The biggest advantage in placing a classified ad on the JobbersWorld MarketPlace is that we reach out to nearly 10,000 contacts in the lubricant supply and distribution space!"

 

Click here for JWMarketPlace    

 

 


Classifieds

Posted February 15, 2011  

Chemlube International Inc. seeks a well qualified person to oversee its finished lubes division.  The General Manager will have P & L responsibility in regard to the company's finished lubricants business. The company invites applicants who have 10+ years of relevant experience in as much of the following as possible:

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Management

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Finished lubricants sales

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Marketing strategy

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Pricing policy

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Additive and base oil purchasing

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Formulation and production

 

The position is based at the company's headquarters in Harrison, NY. Domestic USA travel is required. The company offers competitive salary, bonus potential, health insurance and a 401K plan.  Visit our website: www.chemlube.com

 

Contact: Larisa Voronina @ 914-381-5800 / lvoronina@chemlube.com

All inquiries will be handled in confidence.



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