Tom, Mark, I admire your loyalty to Amsoil. I have done hours-on-hours of
research about
motor oil and I'm convinced that Amsoil is the best. I own 4 auto's and
Amsoil is the only oil
I use. However, I do not necessarily agree with your marketing answers.
Yes Tom, you're correct. Fanchising w/Wal-Mart would destroy the
nationwide
dealer
business network, but that's a cause-and-effect anomoly of open
franchising
and free marketing.
It's obvious to me that you don't just sell Amsoil products, you educate
prospective buyers with
proven data that Amsoil is the superior product. In doing so, I bet your
customers are more
appreciative of your honesty and obvious committment to the product.
Sorry, Mark, I don't believe the manufacturer is faced with little or no
profit. Every product sold on
any Wal-Mart shelf is making the manufacturer a profit. "little to no
profit" is a relative statement.
If Crest toothpaste only sold 10 tubes a week on average, then
Proctor-&-Gamble (that's who
owns Crest) would have to charge an enormous price for each of those 10
tubes to make a profit.
However, they sell millions daily by saturating the market with their
product. They do that via the
shelves of Wal-Mart, K-Mart, drug store, 7-11, etc... and if the profit is
only a fraction over
cost, then that "fraction" is enough for the company to satisfy it's stock
holders, employ hundreds
of people to shove the paste inside the tube, grow as a company, and yes,
make a profit.
If you were faced with the choice of selling 50 cases of Amsoil oil a
month,
with a .50 profit per qtr
or selling 5,000 cases a month with a profit of .5, you would take the
second choice. Why?
because a smart guy like you would apply the same math formula Wal-Mart
employs:
50 cases (x) 24 = 1200 (x) .50 = $600 for you.
5K cases (x) 24 = 120,000 (x) .05 = $6,000 for you.
Again, both of you, your loyalty and committment to Amsoil and your
independent dealer****ps
is very admirable. My recommendation is let the product sell itself.
Educating the customer will
reveal that Amsoil really has no competition. It's not like a choice
between
Peter Pan peanut butter
or Jiffy. All the independent research will tell you, or any prospective
customer, that Amsoil
is a far supierior product. But unlike Tom, Mark - you're trying to
convince
me, and most likely
all your customers and potential customers, that the evil empire of
Wal-Mart, who can sell
Mobil-1 or Castrol with a Fram filter cheaper than u can sell Amsoil w/an
Amsoil filter, is actually
the enemy. Please....you may convince others to buy Amsoil from you by
using
the evil empire
speech, but that would be doing the product an injustice. :-)
"Thomas Adams" <imcelt2@[EMAIL PROTECTED]
> wrote in message
news:P_Zqg.19308$0G2.17062@[EMAIL PROTECTED]
>
> "Mark R. Hansen" <best1syn2oil@[EMAIL PROTECTED]
> wrote in message
> news:4cBqg.20$WJ2.15@[EMAIL PROTECTED]
>> "juanalong" <juanalong@[EMAIL PROTECTED]
> wrote in message
>> news:12alashgrj0j025@[EMAIL PROTECTED]
>> > Back to the marketing thing, seems to me that if one of u independent
>> > Amsoil dealers could figure out how to partner w/Wal-Mart, then
Amsoil
>> > would be as much a household name as Mobil or Castrol. You would
think
>> > Wal-Mart would be receptive to competition, anything to drive down
>> > their
>> > overhead and increase their profits.
>>
>>
>> If AMSOIL were to sell to chain retailers with in excess of 12
locations,
>> these retailers would have enough economy of scale to undercut pricing
to
> a
>> level that Dealers could not sustain. The company has been approached
by
>> Wal-Mart and others many times, but the family is loyal to its Dealer
>> network without which AMSOIL would have ceased to exist long ago.
>> Partnering with Wal-Mart or anyone of national scale would destroy the
>> business of AMSOIL Dealers nationwide.
>> AMSOIL products are a great value especially at Preferred Customer or
> Dealer
>> prices even when you factor in ****pping. Most any shop will install
> AMSOIL
>> for you, though many will charge a flat rate for the change even if
they
> do
>> not provide the oil.
>>
>> --
>> Mark R. Hansen / AMSOIL Dealer
>> Change your oil and filter once a year,
>> check out "America's Oil", AMSOIL at
>> www.bestsynoil.com
>>
>>
> Mark, tell him the other side. That Wal-Mart Inc. drives suppliers
> wholesale
> prices to the no profit range just to make a sale. They offer a few
cents
> profit for a whole train load of product. The retail customer gets what
> they
> think is a bargain while the manufacturer is faced with little or no
> profit
> at the end of the year. You are correct in that Al Amatuzio and company
is
> extremly lolal to their dealers. They realize that they made this
company
> and will continue to do so for many years to come.
>
> --
> Thomas Cameron Adams
> Independant AMSOIL Dist.
> imcelt2@[EMAIL PROTECTED]
>
>
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