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Welcome to the "Oil Insider"!
Our weekly newsletter is full of valuable tips & industry specific solutions within the construction, aggregate, sand & gravel, mining, and cement industries. Our business is centered on the petroleum industry and how to manage your business to be successful in dealing within this industry.
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Oil is Oil?
The favorite question amongst oil consumers. I often get asked, what is the difference between your oil and the oil I am currently using? How is your oil better? Well, that all depends on your perspective, I often respond.
For years I only sold one brand of oil, and competed against all of the brands in the marketplace. If we're talking engine oils, which we usually are, then it becomes a matter of perspective on which brand is the best. The best oil usually goes to the best salesperson. When an oil is qualified against API CJ-4, for 2007 engines, or CI-4+, for older engines and extended performance, the fact is the oils qualified in meeting these specifications have to meet a certain performance level. These tests are very stringent and don't offer the opportunity for oil formulators and additive companies to provide an advantage over a competitor's oil, at least not a huge competitive advantage as some market pricing may suggest.
Each oil company may prove to be better in one oil characteristic on a marginal level, whether it is shear stability, TBN retention, or wear protection. Keep in mind that oil formulation is like baking a cake, you tweak one ingredient and alter the overall taste, or performance factor, of the finished product. A balanced formulation is the key. Some oils will outperform others when extended oil drains are applied, but you have to extend pretty far to see the marginal differences on performance. The real test is what are you basing your test criteria on? Who's helping you interpret the results of the test? Usually, it's the better salesperson. JG
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Don't Want to Make a Change?
Change is the most feared aspect of life, although it is consistent and ever evolving. Change is also the culprit of higher pricing that we pay for our oil. Brand loyalty is a grip which holds us to paying more than we should for our commodities. I am guilty as charged. I've raced motorcycles at 170 plus miles per hour on Valvoline synthetic, extended oil drains in my BMW to 25,000 miles for years on Mobil 1. Now, I just use what my dealer puts into my Range Rover. Why? Because it's free with my maintenance program!
Seriously, when you run a business, this brand loyalty will often lead to your company paying more for your oil, regardless of the brand. Why? Because your supplier knows you won't change. You will pay an extra 10-20% on average for a product if your supplier knows you won't leave the brand. I've seen many companies make changes from different oil suppliers, I'm still looking for the engine that failed after making the change.
What do you do? You evaluate your supplier on the performance they provide, evaluate them on service, delivery, responsiveness, and most importantly, on integrity. I wish I had a nickel for every bulk meter on a lube truck that wasn't calibrated properly, for every product that was mislabeled or misrepresented in the marketplace. Integrity also means that you are being priced appropriately for the service provided, and for the quantity of oil that your company purchases.
If you're paying more that you should for your oil, don't blame your supplier, take a hard look in the mirror...JG |