NEW PRODUCTS - Synthetic Warehouse PDFs 2014...And even cold temperature additives have value in the...
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Presented By: Alan Amatuzio
NEW PRODUCTS - Synthetic Warehouse PDFs 2014...And even cold temperature additives have value in the south for when truck trav\ l north. Diesel Additives Dealer Profit Selling to a
We are always investing in the company, in ours and your future. These investments come in the form of buildings, equipment, products and people. The market is always changing establishing new trends. These are trends you can profit from. Changes = profit if you know the trend.
AMSOIL Mechanical Laboratory
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To start, let’s review what we call the crown jewell, the AMSOIL Mechanical testing laboratory.
Purpose • Research and product development
Benefit • Conduct experimental testing faster and more precise • Assists in generating marking data • Confidence statement for our Dealers & customers • Establishes our technical competency
Mechanical Laboratory
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Why did we invest in this lab? Marketing benefits Dealer and customer confidence. Establish technical competency
AMSOIL is a custom formulator and our products are unique to AMSOIL.
• Unique products are expensive • Helps manage cost • Allows us to expedite research and customize testing.
Mechanical Laboratory
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Most other oil companies are not formulators. They are blenders of someone else’s formulation. AMSOIL is different. Faster product development. Specialized testing not available elsewhere
Selling Products & Making Money
Today’s Agenda
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Discussion on certain products and markets. Where they are going and where you need to be.
Transmission Fluids
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Notice the new look of Signature Series ATF – The “A” is the same as in the logo. Nice! We have a three person graphic arts department today – another key investment for the benefit of AMSOIL and AMSOIL dealers. Our overall image with brochures and labels is second to none.
• OE ATF Target • Independent Auto Repair Shops • Transmission Repair shops • Fast Lubes
• Signature Series ATF target • Enthusiasts • Severe Service Vehicles • DIY Customers
Target Customer
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OE is targeted for businesses Signature series is targeted to individuals
Why are we selling it and to whom? • Stiff pricing competition • Preferred product to installers
OE ATF
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You asked for it and now you have it. – Lower pricing ATF to compete with competitive branded synthetic ATF.
Signature Series Transmission Fluids
• Top Tier Performance • Las Vegas Taxi Cab Field Trial
• 18 test vehicles • 1.2 million miles of R&D in 2013
− Proof of performance publication − Signature Series ATF
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Updated edition on its way featuring 180,000 miles of operation in the transmission. Current publication with 100,000. Chrysler chargers recommend 60,000 mile severe service. We went 3X with Signature Series.
Let’s talk about low viscosity ATF. This is the trend. The primary purpose is fuel economy. More vehicles coming to market require low viscosity, fuel efficient ATF. So we are seeing traditional ATF declining in sales while low viscosity ATF is growing in sales. Similar to 10W-40, 10W-30, 5W-30 and now 5W-20.
• Marketing one product is suitable both applications
• PQIA had issued an advisor on this products because it doesn’t meet MERCON® Specification. • Viscosity specification for MERCON® is 6.8 cSt minimum @ 100 • Valvoline MaxLife sample tested at 6.0 cSt
• PQIA's position is that we cannot condone the reference to a specification when the product does not adhere to all aspects of that specification.
ATF issue – One oil good for all?
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And while some companies try to market one oil as good for both high and low viscosity, the truth is there are rules against it. This presents a sales opportunity for you. If you are competing with an oil sold as good for all, you can point out that certain specifications, such as DEXRON VI and MERCON are mutually exclusive and one oil cannot satisfy their minimum and maximum viscosity requirements.
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That concludes ATF.
European Motor Oils
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Next, AMSOIL created the European car market. Again, notice the handsome labels. The competition caught on quickly and came out with a lower cost product. You asked and we responded with EFM, a lower cost version. EFM is the primary recommendation for installers as it satisfies most all of the North American market.
Mid SAPS – AFL 5W-40 • Medium levels of SAPS additives • BMW LL-04, VW 505.01
Full SAPS – EFM 5W-40 • High levels of SAPS additives • BMW LL-01, VW 502.00, 505.00
SAPS Sulfated Ash, Phosphorus, and Sulfur
Applications
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These cars are normally taken to the car dealership for service. With AMSOIL, installers can service these cars and it is working. Our sales are strong. European oils for installers is working. Pursue installers with EFM.
If you are not selling fuel additives, you are missing out on profits. How big is the diesel fuel additive market? Well, there are entire companies today with diesel fuel additives as their primary product.
We redesigned our diesel fuel additive line giving a family appearance. Handsome, no? Our approach has been to concentrate the active ingredient and not dilute with combination products. We have the right diesel fuel additive for all diesel applications. Cold, Clean, Power
Testing Product Name CFPP Results
(C°) Power Service -27
Stanadyne -27
AMSOIL DFC -51
Straight #2 ULSD fuel -28
Product Name Wear Scar (mm)
Schaeffer 0.582
Motorcraft 0.621
Power Service 0.559
AMSOIL ADF 0.388
Straight #2 ULSD fuel 0.598
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Data shows that our performance concentrate outperforms the blended version As you would expect, AMSOIL additives are top performers. We prefer concentrates to all-in-one blends. Customer flexibility and better performance.
• Contractors with diesel fueled equipment • Performance enthusiasts with turbo-diesel pick-ups • Independent owner operators, small private and for
hire fleets
Target Customers
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Fuel additives are great products to use for entry to a new customer. They are low threat and they result in noticeable benefits. And not just an entry additives, they are also great add on sales. The two ways to increase sales are to gain more customers or sell more to existing customers.
Target Customers
Three local companies were having major cold temperature issues.
• Problem: They were not using AMSOIL products.
Diesel Additives can be marketed in southern states. • Detergents needed • Cold temperatures where customers drive north
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A story about some local companies who happen to be friends of mine. They had trouble this past winter with their diesel equipment. It would not run. So they came to me and asked if we could solve the problem. And we did. Fuel additives are not just for cold weather. They are needed year around. And even cold temperature additives have value in the south for when truck travel north.
Diesel Additives Dealer Profit Selling to a Retail/Commercial Account
• $12.89 ADF Diesel Injector Clean
• $11.94 ACF Diesel Cold Flow
• $15.87 DFC Diesel Injector Clean
+ Cold Flow
• $22.18 DRC Diesel Recovery
• $14.54 ACB Diesel Cetane Boost
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Additives are particularly profitable. They command a higher price and margin and they are consumable. Unlike a lengthy oil change, fuel additives get used with every tank of fuel. If you are not selling additives, you are not hitting your earning potential.
Aerosols Product Spray Grease Miracle Wash Spray
Heavy-Duty Greaser
Metal Protector
Power Foam
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Another redesigned product family. Ahh, look at those labels. Plus, some additions with a degreaser and the re-introduction of spray grease. Entry products again. And add on sale. Non-threatening
Aerosol Product Dealer Profit Selling to a Retail/Commercial Account
• $8.19 AMW Miracle Wash
• $13.47 APF Power Foam
• $12.58 ALS Silicone Spray
• $10.06 AMP Metal Protector
• $6.42 FOG Fogging Oil
• $13.71 AMH Heavy-Duty Metal
Protector
• $25.73 ADG Heavy-Duty Degreaser
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Great profits from aerosols. Highly consumable.
• Positioned for retailers • No seasonal inventory change out
needed
AIO 2-Stroke Injector Oil
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Fills a void for retail stores with lower cost competitive products.
ATP Redesign
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Here is a recent evolution of AMSOIL pre-mix two-stroke. Through research, we uncovered that promoting 100:1 alone could be a barrier to sales. Many don’t believe. Even some new people on the team did not believe it until they saw the proof for themselves. So we had to balance the 100:1 recommendation while still allowing the product to be used for any mix ratio. Notice that 100:1 is greatly reduced, but not gone. One oil covers all mix ratios – save time, money
• What does it mean and who uses it? • Benefits and negatives to advertising 100:1 • Saber is no longer marketed as 100:1 • Target market is hand held power equipment
100:1
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100:1 – lowers smoke, lowers cost, and adds convenience because one oil for everything. One oil for all - convenience Saber – sword or cut which fits with its market.
The Saber Ratio
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Our position on SABER is to make SABER appeal to a wider audience. To do so, the oil can be used at any ratio. 1- It does not have to be used at 100:1 2- The new SABER Ratio is the ideal mix ratio
Price Comparison
PRODUCT 1 Gallon Price 1 Gallon Oil of Makes
$ Per Gallon of Fuel
SABER PROFESSIONAL $43.55
(MSRP) 100 Gallons
of Fuel $0.44
Husqvarna XP $51.93
50 Gallons of Fuel $1.07
STIHL Ultra $129.00
50 Gallons of Fuel $2.58
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I was amazed at the price of STIHL and had it double checked. Surely we can capture some of those sales.
Continuously Variable Transmission Fluid (CVT)
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You asked for it and here it is! And look at that label!
• Independent Installer • Example applications include -
Product is unavailable unless you go to a dealership Target market would be the installer market The market is growing and like the European car oil, you now have a product that allows installers to compete with dealerships.
To date, AMSOIL motorcycle oils have all been lumped together. There are defined markets within the motorcycle space. To better position the products and increase sales, we are separating our products into defined markets AND expanding the product offering. Let’s start with our biggest selling motorcycle oil, 20W-50. The market is almost exclusively V-Twin powered motorcycles. This is our first new product family. Here is a sneak peak
New images. Complete family. Introduction of two new products – transmission fluid and primary chaincase fluid. I know, you are wondering if the motorcycle oil can still be used in all three applications – yes. But some customers want three different products so we must offer them. And look at those labels! Handsome! Color coded caps, grey bottles to stand out, engines match viscosity and applications. Wow!
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So what I see is clear skies and a path to more sales and more growth.
