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Petroleum Quality Institute of America

 
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March 1, 2011

JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS...  The First and Only Independent Newsletter to Focus on Lubricant Distributors.


New! Click here for the JobberWorld MarketPlace


Here We Go!  The Independents are First to Move.      

Smitty's announces it will increase the price of its Super S, Sureguard, TriStar, Custom Plus and all other private label brands effective March 20, 2011.  According to JobbersWorld's sources, the price of bulk and packaged lubricants (excluding synthetics) will increase $0.60 a gallon. Synthetics will increase by $0.80 a gallon. And dexos packaged lubricants will increase by a whopping $2.00 a gallon.

 

Smitty's says these increases are strictly due to the increased cost of raw materials used in manufacturing lubricants.

 

CAM2 will also bump up prices. Bulk lubricant prices (excluding synthetics) will increase by $0.60 a gallon effective on orders placed after March 12, 2011. Packaged lubricant prices will increase by the same effective April 2. Synthetic lubricant prices for bulk and packaged will increase by $0.80 a gallon on the same schedule.  The price for CAM2 grease will increase by $0.08 a pound.

 

Warren Oil Ups its Price. Warren Oil announced it will increase the price of its bulk lubricants by $0.50 a gallon effective March 14, 2011.  The price of its packaged lubricants will increase by $0.60 a gallon effective April 1, 2011. The good news in the Warren Oil announcement is that the price of its chemicals and additives will not change.   

   


Ouch!  

 The Shell and Jiffy Lube Story  

 

It didn't take long after JobbersWorld ran the story about Shell sweetening its offering to Jiffy Lube franchisees before we heard (loudly) from some who feel the deal is not as sweet as it sounds. 

 

For those who may have missed it, we reported in the Feb 15th issue of JobbersWorld that Shell launched a program that is very aggressive in its efforts to retain business with its Jiffy Lube franchisees. The new program offers franchisees an opportunity to enjoy a 1% reduction on their royalty fees, a lubricant price pegged to an index, and other benefits.   

 

It's all good, or maybe not?

 

JobbersWorld got slammed by a number of our readers about this story. In fact, one reader seemed to express the sentiments of many others when they stated "Are you kidding me? " 'Sends a strong message that Shell is committed to its relationship with Jiffy Lube'.  You guys missed the mark with that article."  

 

Based on this and other feedback we received, maybe we did miss the mark, maybe there is another side to this story.  So let us know what you think about Shell's new Jiffy Lube franchisee offer, the pros and the cons.  Is it a sweet deal, a lemon or a few sour grapes?    

 

Call us at 732-494-0405, or email us to confidentially let us know what you think.  

 

Petroleum Quality Institute of America (PQIA) Issues Consumer Alerts on Two Motor Oils

The Petroleum Quality Institute of America issued Consumer Alerts on two passenger car engine oils today that are currently on the market. The oils are Liberty Gold Plus SMO 5W-30 Motor Oil and Bullseye Automotive Products High Mileage 10W-30 Motor Oil (SC/CC). According to PQIA, these products can cause harm to an automobile engine and void warranties.

 

These two brands of passenger car engine oil were purchased by the Petroleum Quality Institute of America in January and February 2011 in Ohio and Michigan. The test results for the samples show they fall far short of the product's labeled viscosity. Whereas the Petroleum Quality Institute of America feels the low viscosity of these samples alone is enough to issue a consumer alert, other test data for the samples indicate use of these products can cause damage to an automobile engine.

   

Also of concern is that these products were purchased at a convenience store operating under the Shell banner. PQIA's website provides excellent insights on how this can happen and why Shell and other major oil companies have little control of what non-fuel products are sold at service stations flying their flags.

 

See the Petroleum Quality Institute of America's website for details on the alerts and Shell's comments:  

www.pqiamerica.com 

 

Shane Terry Moves on From North American Lubricants

JobbersWorld has learned that Shane Terry resigned from his position as President of North American Lubricants (NAL).  Terry lead NAL to record growth during his term and built a national infrastructure to market both their Puratech and PureGreen brands.

 

JobbersWorld was able to reach Terry for comment.  Terry stated, "Having the chance to develop, manage and execute the rapid growth of a national supplier was an amazing opportunity.  I am grateful to have been part of their management team and wish NAL continued success."  Terry continued, "I felt the time was right to make a change and follow a vision to create a 'Next Generation Major Oil Brand' that was centered on integrity, innovation and customer service.  Branding in the lubricants market has become about the corporations that are supported, not the customers being served.  I want to change that.  Our new venture consolidates a group of high-profile financial investors, marketing professionals, manufacturing partners and customer focused employees to define a new definition for branding; about people not products."

 

Terry anticipates releasing further details of the new corporation within the next 60 days.  JobbersWorld will stay on top of this developing story.  With additional price increases hitting the street, new performance standards and demand for quality products at competitive prices at an all time high, the timing may be perfect for a major player to enter the marketplace.  Terry can be reached at shaneterry25@yahoo.com


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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