VIEWS: 10 PAGES: 26 POSTED ON: 8/29/2012
FIELD SALES TOOLS SERIES QUICK LUBE Table of Contents Target Market Synopsis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 2 Gain a Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 3 Dispelling the Myth of Other “Extended Drain Interval” Oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 3 Market Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 3-5 Industry Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 5-9 Price Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 5-6 Extended Drain Intervals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 6-7 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 7 Declining Car Counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 7-8 Quick Lube for the Truck Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page8-9 Cost Savings for Fleet Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 9 Target Market Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 10 The Power of Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 10 The Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 11-13 Long Term Profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 13 Demystifying the Female Motorist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14 Checklist for Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14 Products and Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 15-16 Miscellaneous Convenience Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 16 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 17 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 18-26 A View from the Field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 18-19 More Money in Ten Seconds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 19 Looking to Save Time and Money? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 20 Can My Business Make More Money in Ten Seconds? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 21 Top Ten Reasons to Use AMSOIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 22 AMSOIL Dealer Quick Lube Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 23 Month-by-Month Oil Change Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 24 AMSOIL vs. Petroleum Oil Price Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 25-26 Sales Tip: Generally Target Market Synopsis speaking, larger Quick Lube operations are There are two main markets within Within the Quick Lube market, corporately owned, the oil change industry: there are two distinct operations: whereas the smaller, independent operations DIY Market (Do-it-for-Yourself): Franchise Operations: are many times owner • These are the people who change the oil • There are companies that operate operated. AMSOIL is not in their vehicles themselves. franchise operations with hundreds of stores discouraging Dealers from • This market has continually gotten smaller (i.e. Jiffy Lube). calling on corporately and smaller over the last few years. • For the purpose of this FST, operations owned Quick Lube with those over 30 stores will be considered operations, but has found DIFM Market (Do-it-for-Me): larger or franchised businesses. the independent operation (This is the market that will be focused on in to be a much more likely this Field Sales Tool (FST).) Independent Operations: AMSOIL customer. The • In order to put together the most • There are smaller, or independent, owner/operator can make comprehensive Quick Lube FST possible, operations where one owner will own and a buying decision quickly each of AMSOIL’s Regional Sales Mangers operate a small number of stores. when it comes to carrying spent a full day working at a Quick Lube • For the purpose of this FST, operations AMSOIL products, while operation. From getting down in the pits, with less than 30 stores will be considered the corporately owned washing windshields, to asking questions of smaller operations. operation usually has a Quick Lube customers, the research much longer decision performed by the RSM’s was done to best There are some minor differences as to making process. serve you, the AMSOIL Dealer. these two operations and Dealers need to Furthermore, the corporate • AMSOIL Dealers have already be aware of the type of operation that is operation may frown on established thousands of DIFM accounts, being approached. Here is an example of the use of competitor’s and there are tens of thousands left to one difference between the two types of products in their establish. Quick Lube operations. Consider that a corporately operated smaller operation averages $27.36 for a locations. The DIFM market has continually grown full-service lube, oil and filter change with a over the last number years. For example, multipoint inspection. That same service the number of quarts of oil purchased by from a larger operation averages $29.44. DIFM’s in 1996 was 43.4 %. In 2000, that The average cost of goods for the smaller number had risen to 50.4% and it continues operation is $9.13. The franchise owned to grow. There are many reasons for this operations cost of goods is only $6.82, so shift. First, the population as a whole is as you can see, the smaller operator works Educational Note: In getting older and the aging population is on a smaller profit margin, which is very the real world, many more inclined to be DIFM’s and second, important for you to know. As an AMSOIL drivers operate their there is the issue of convenience. Someone Dealer, you should have at least one Quick automobiles under what is is more likely to have this service performed Lube operation as a customer so you can often called "severe driving for them as leisure time becomes scarce for send your clients to this location to have conditions." most people. An offshoot to convenience is their oil changed to AMSOIL. the difficulty for individuals to dispose of the waste oil and filter, not to mention the fact that there is some complexity and difficulty Severe Service Definition: for individuals to get to the filters, get under • For gasoline engines, severe service is cars, etc. People today are much more defined as turbo/supercharged engines, conscious and active in keeping the commercial or fleet vehicles, excessive environment clean. Through extended oil engine idling, first and subsequent use of drains and advanced filtration, Quick Lubes AMSOIL engine oil in vehicles with 100,000 customers generate less waste and thus miles or greater, daily short trip driving less have a positive impact on the environment, than 10 miles (16km), frequent towing, which plays well for AMSOIL Dealers and plowing or hauling heavy loads and frequent the Quick Lubes. A strong economy also driving in dusty conditions. decreases the number of people who will • For diesel engines, severe service is perform this task and increases the amount defined as commercial or fleet vehicles, of DIFM’s. Because of this, the Quick Lube extensive engine idling, daily short trips industry has, and for the foreseeable future driving les than 10 miles (16km) frequent will continue, to grow. towing, plowing, or hauling heavy loads and frequent driving in dusty conditions.Now more than ever, is a great time for AMSOIL Quick Lube Page 2 11/06 Gain a Competitive Edge Dealers to target the Quick Lube Market, legitimized the extended drain interval and product consolidation may be the best claims that AMSOIL has been touting since way to gain the edge over the competition. 1972. As more and more Quick Lube operators Quick Lube Operators now have more and consumers are educated about the synthetic choices, but that doesn’t benefits of synthetics and buy into extended necessarily mean the owner/operators of drain intervals, the more AMSOIL Dealers these Quick Lubes will stock several should be able to effectively sell the wide different brands of oil. Competing array of AMSOIL products to Quick Lube companies do not offer the overall product operations. line that AMSOIL can. Since the introduction of extended With the AMSOIL lines of gear lubes, performance oils by some of the world’s transmission fluids, greases, filters, and car major oil companies in early 2005, much products in addition to the first in synthetic more attention has been focused on motor oils, Dealers can offer Quick Lube synthetics. The marketing blitz by Operators the opportunity to keep things companies like ExxonMobil and Pennzoil simple and profitable. Dispelling the Myth of Other “Extended Drain Interval” Oils As mentioned above, ExxonMobil AMSOIL can be used with confidence. Make announced a new line of motor oils in early sure to highlight the AMSOIL warranty when 2005 recommended for extended oil drain discussing this issue with the quick lube intervals. A close look at ExxonMobil’s new owner or manager. long drain motor oil line reveals that two are petroleum based, one is a synthetic blend Pennzoil also has an extended drain interval and the only one, Mobil 1 Extended oil, but in order to participate in their Performance, is a full synthetic. The extended warranty program, it would be petroleum-based products are necessary to keep every oil change receipt, recommended for 5000-mile drains, the and even if using synthetic motor oil, the oils synthetic blend for 7,500-mile drains, and would need to be drained every four months the Extended Performance for 15,000-mile or four thousand miles. drains. However, a look at the fine print If Quick Lube owners/managers want to use reveals that ExxonMobil is still a product that stands apart from the recommending drivers follow the oil drain competition, they will use AMSOIL. AMSOIL recommendations listed in their owners has always formulated products to be the manual during the warranty period. This absolute best, continually researching ways means that Quick Lube owners and their to make the already outstanding products staff must know if all of their client’s vehicles even better. Other oil companies formulate are under warranty. their oils down to a price, rather than formulating them to be the best. AMSOIL Quick Lube owners or managers do not will beat the competition not only in have to worry about the warranty of their performance, but in overall value as well. customer’s vehicles with AMSOIL. Also, make sure that you offer to send Owners/managers can be assured that customers to his/her location. What other oil AMSOIL will work for all vehicles, whether it company offers this service? has 100-miles or 100,000-miles, and Market Challenges There are many market challenges for Quick The market challenges faced by the Quick Lube operations. The following are some of Lube industry will vary depending on the challenges that most Quick Lube whether the customer is a small operation operators have the most concern with: or franchised, location but one thing is certain: Business is tougher than ever for • Crowded Marketplace operations in this industry as there is more • Employee Retention competition than ever, costs are rising and • Average Ticket Sale market-selling prices are staying the same. • Consumer Perception The U.S. Quick Lube industry is already known as a crowded market and it is Quick Lube Page 3 11/06 Market Challenges (cont.) inflating even further with the addition of a advertising, and other expenses that can not new group of participants, that being car be attributed to a particular item for sale. dealers with stand-alone oil change • Subtracting the cost of goods sold from centers. A growing number of auto the sales revenue (amount billed when manufacturers have developed programs selling the good) produces the gross profit intended to put oil change facilities on their on the good. own lots; and while oil changes may not be • The net profit, what most people what car dealers are focusing on, that understand as the business' income or service may be offered as a way to gain profit, is determined one of two ways: other business. That doesn’t change the fact • By subtracting the cost of goods sold and that with car dealers providing this amenity, the indirect expenses from the sales there is more competition for existing Quick revenue. Lube operators. • By deducting the indirect expenses from the gross profit on the sale to generate the One of the biggest challenges faced by the net profit. Quick Lube industry is employee retention, which is something Dealers must be aware Consider the following example: of when approaching this potential customer. Employee retention is critical to Sales Revenue +$100,000 any business as the process of retraining new employees is expense and causes Net Cost of Goods Sold -$70,000 gaps in consistent customer service. For smaller operations, the average length of Inventory Cost 01/01/_ -$5,000 employment for managers is 4.8 years and Purchases -$45,000 for smaller operations it is 3.6 years. For Direct Labor Costs -$30,000 lube technicians, smaller operations report Less Inventory Gain12/31/ +$10,000 the average employment time of 2.1 years while franchise operations only keep Gross Profit on Sales +$30,000 technicians an average of 1.1 years. A Dealer can show the operator of either of Indirect Expenses -$2,500 these operations how to be more profitable, and in turn be able to compensate their Net Gain / Loss (i.e. profit) +$27,500 employees, and themselves, better. This will help keep employees around for a longer If the cost of goods sold is too high, gross period of time as well as show an profit will not support the indirect expenses understanding of the Quick Lube industry and will result in a net loss for the and are not just looking for the “quick sale.” accounting period. Simply put, the average ticket price is the The key here, when talking to a Quick Lube average sale a particular Quick Lube makes operator who is using Cost of Goods Sold from a single customer. Quick Lubes and as a business metric, is to focus on the fact other business use this “average sale” as a that while using AMOSIL will increase their basic method for tracking profitability. Cost of Goods Sold, it will also increases Recently, Quick Lube owners have begun to direct sales revenue because a higher focus on another part of the financial amount can be charged to each AMSOIL equation – “Cost of Goods Sold”. customer for the benefits of longer oil life and less engine wear. Cost of Goods Sold is: Quick Lube operators would have to figure • In accounting, the cost of goods sold in 2.5 oil changes, as to Cost of Goods describes the direct expenses incurred in Sold, when comparing the Cost of Goods producing a particular good for sale, Sold for a petroleum product against the including the actual cost of materials that AMSOIL XL product line. This is due to the comprise the good and direct labor fact that a customer would need to change expenses in putting the good in salable a petroleum-based product 2.5 times to condition. Cost of goods sold does not equal the mileage obtained when using the include indirect expenses such as office XL AMSOIL product line. The Quick Lube expenses, accounting, shipping department, operation should make as much, if not Quick Lube Page 4 11/06 Sales Tip: Keep in mind Market Challenges (cont.) this important fact: Small operations need to service more, profit on one AMSOIL oil change then bottom-line. For most AMSOIL Dealers, 24.0 cars a day to break would be made on two (2) petroleum oil Quick Lube operations are a good industry even, where franchise type changes. AMSOIL products are priced so to focus on. operations need to hit 26.1 that the sales revenue of a Quick Lube will cars per day serviced to increase more than Cost of Goods Sold, Another challenge in the Quick Lube reach that same break resulting in a positive impact to the Industry is the perception that the oil in the even point. bottom-line. Conversely, when a petroleum oil change is “free.” Historically, oil has company increases their price, Quick Lubes always been sold as a loss leader, meaning can’t charge customers a higher price that the message communicated to without potentially losing them as a consumers is that it has no value. The result customer because there is no additional of this kind of pricing model is that in the benefit, just a higher price for the same old Quick Lube business, people think the only service. The core message is that using thing they are paying for is the service, AMSOIL will result in higher gross sales which is not the case. revenue and add positive dollars to their Industry Concerns The most common concerns for a Quick Lube operator are: • Price points • Extended Drain Intervals • Competition • Declining Car Counts Price Points Pricing is a concern in any industry and the The average ticket sale is another Quick Lube market is no different. Many of issue Dealers need to discuss with the these operations will advertise an oil change operator of a Quick Lube. It is more for as little as $13.99. The profit margin a important than ever for these operations to Quick Lube operation realizes with this type have a healthy ticket average, as it obviously of pricing for this service is very small. A makes the difference as to whether or not successful AMSOIL Dealer should have a they will have a positive or negative bottom goal to show the Quick Lube owner how line. Dealers can be of assistance in helping they can increase their profit margins by uti- them to a healthy bottom line by providing lizing AMSOIL products, even though the the full AMSOIL product line, from price point may be higher. lubrication to appearance products. The average ticket for smaller operators (less This is accomplished by using the same than 30 locations) is $40.36 and $50.49 for principles as discussed in the previous franchise type operations. section on “Average ticket” and “Cost of Goods Sold”. Quick Lubes can generate Add on sales is a very important part of more bottom-line profit on customers who increasing the average ticket sale. Filters purchase AMSOIL oil changes. These (air, oil, and fuel filters), automatic customers are also more likely to be transmission fluid replacement, gear lube, long-term customers because of the windshield wiper replacements, fuel injector benefits the Quick Lube provides them by cleaning, and chemical engine flushes are using AMSOIL: services most Quick Lube operations offer, and AMSOIL has the products to fit their • Longer Oil and Filter Life – Saves needs. Again, this information is very Time and Money important, as Dealers want to be able to • Less Wear and Tear on the Engine – discuss the average ticket sale with the Saves Time and Money operator of a Quick Lube and convince them • Less Oil and Filter Pollution – that they can increase their average ticket Imparts Feeling of Helping the sale by utilizing AMSOIL products. Environment Quick Lube Page 5 11/06 Price Points (cont.) The limited funds mind set is a state of mind certain products like oil and filters, benefit or that any business owner can get themselves least harm to the environment. AMSOIL is a into very easily. Getting them out of this perfect product to appeal to these emotional mind set can be difficult. Limited funds factors. Customers will pay more if the Quick suggests that customers have only X dollars Lube staff can create a high-perceived value to spend on your product or service and no for the product or service. Remind them of more. This mind set is very debilitating to a the three key benefits (listed above) of using business because it places an artificial limit AMSOIL. If prepared and armed with this on the prices (revenues) a business can type of information, Dealers can talk about achieve. Consumers purchase on emotion price points, as well as how to increase the and use logic to justify their purchase. average ticket price for the operation. By Emotional decisions are based on perceived discussing and sharing this information, value to the purchaser and, in the case of AMSOIL Dealers can and will sell more oil. Extended Drain Intervals Sales Tip: Some industry experts will have Dealers Today, motorists are bombarded with Ask the operator “If you and your Quick Lube owner/operators propaganda from the major oil companies have a customer coming to believe that extended drain intervals, past promoting 3,000-mile oil changes. However, you every 5,000 miles, do what the Original Equipment Manufacturer the industry is slowly but surely coming you want to make $10.00 (OEM) recommends, is the single greatest around to where vehicle manufacturers dollars or $25.00 dollars?” threat facing the quick lube industry today. typically suggest 5,000 to 7,500-mile The key is to sell the value The real message is that extended oil drains intervals in their owners manuals, and many of AMSOIL Synthetic Oil are here to stay and Quick Lube owners will manufacturers have also started and extended drain seek to maximize their profits by embracing incorporating oil life monitors into their intervals. the change. Ignoring synthetics as a viable vehicles, allowing motorists to safely extend long-term business model leads to drain intervals by monitoring oil life and bankruptcy. Yes, extended drains may mean alerting drivers when the oil needs a reduction in the frequency of visits from changing. This is one reason that the some customers, but the profit margins are AMSOIL XL product line is perfect for Quick higher with AMSOIL and later it will be Lube operations. Competing oil companies discussed exactly how this can have also begun marketing their own demonstrated this to Quick Lube synthetics, some claiming service lives owners/managers. (See addendum) extending beyond 3,000 miles. In fact, Mobil recently announced that they have Instead of becoming more like other auto developed oils designed for 5,000, 7,500 service facilities, which are fighting the and 15,00-mile oil drains. They also spent extended drain revolution, encourage the somewhere between 45 to 55 million dollars Quick Lube operator to distinguish in advertising these new oils. Dealers can themselves from their competition by use this advertising as an advantage-- that embracing synthetic oil and extended even the major oil companies are now com- drains. In addition, these operators need to ing around to the fact that oil drains can be create a service experience that their safely extended, something that AMSOIL customers cannot get elsewhere. This can has been promoting for over 30 years. It can include many things; customer service also be shown that Quick Lube owners can oriented employees, prompt service, clean profit more by carrying AMSOIL. stores and a high quality product that will allow for extended drain intervals. They have Lubes-n-Greases Automotive Editor David customers who are looking for a product McFall, once with the American Petroleum that provides the protection they demand for Institute, tackled the issue of extended drain their vehicle (and the convenience of fewer intervals in a recent column, criticizing the trips to have their oil changed) and that standard 3,000-mile oil change and referring product is AMSOIL. Remind the owner that to the American motor oil market as most people don’t bring their vehicles in "shackled." right at 3,000 miles. In fact it is usually "In Europe the average engine oil drain closer to 4,000-5,000 miles. interval for current gasoline-fueled cars is about 10,000 miles," explains McFall. "In the United States, indicates the Automotive Oil Quick Lube Page 6 11/06 Sales Tip: Use some of Extended Drain Intervals (cont.) the included information in sales presentations to Change Association, the average drain The successful AMSOIL Dealer never tries answer objections before interval followed by most drivers is to convince a Quick Lube owner to extend they are even brought up somewhat less than 5,000 miles—one-half oil drains past their comfort level. by prospective clients of Europe's.” regarding extended drain "Every year in the United States, this intervals. too-short drain interval results in the unneeded production of 300 million to 400 million gallons of engine oil; excess consumer expenditures of around $1.5 billion; and tens of millions of unnecessary oil changes." Competition As with many industries, the competition people is currently at approximately 4,350 keeps coming from all sides within the Quick miles) Lube market. The Quick Lube owner that adjusts to the competition will remain in Competition is tough. There are more business for years to come, and the ones threats today then there were 12 months that don’t run the risk of being out of ago, but this also presents opportunities for business. those Quick Lube operations that differentiate themselves from their If a customer is a straight oil change competition. The Quick Lube industry is also location, they could be encouraged to stronger than it was 12 months ago and its partner with, not fight amongst, related position in the marketplace has businesses like independent repair or tire strengthened. There are trends that are shops. The automotive repair industry is aiding the industry, as well as more people concentrating more and more on the falling into the “do-it-for-me” market, which maintenance segment of the industry. Again, will allow the industry to gain energy in the many industry “experts” are encouraging the future. The added value Dealers can provide Quick Lube owner/operator to fight this trend for Quick Lube customers is showing them and continue to educate customers on how they can differentiate themselves from having their oil changed every 3,000 miles. the competition, so their customers come (Note: The average oil change by most back to them time and time again. Declining Car Counts A very large industry concern is that Quick If a customer is looking for ways to increase Lube operations cannot be profitable as car profits, even in light of declining car counts, counts decline by extending drain intervals, they should be informed about per car profit. and this is false. In the addendum of this When Quick Lubes are new or in a period of FST a document called “Can My Business declining car counts, per car profitability is Make More Money in Ten Seconds,” can be extremely important--they need to make Sales Tip: Ask the Quick found. This quick questionnaire and every customer count to the bottom line. Lube owner: “How would worksheet will allow you to show your Quick Lube owners can do this by educating business be if your profits customer exactly how they will make more and “selling” their customers on the fact that were 2.5 times higher? money using AMSOIL, and extending they should switch to synthetics. This helps Would you be interested in drains, than they currently do with petroleum because AMSOIL synthetic oils are priced finding out how AMSOIL motor oil. Go over this sheet carefully before so that Quick Lubes can make as much as can help you achieve you use it in a sales situation. Put together a 2.5 times the profit as they would by using that?”. mock up of this work sheet before you petroleum products. attempt to work these numbers out in front of a customer. If you fill this out for the very Another suggestion is that that they broaden first time in front of the customer, it will their outlook on the services they are show, and it will come across very clearly in providing. For example, one Quick Lube your demonstration. Don’t make this operation recognized a special niche that mistake. was, in their region, mostly an untapped market by recognizing the need for express Quick Lube Page 7 11/06 Sales Tip: The more you Declining Car Counts (cont.) are in front of qualified prospects, the better off services for all classes of vehicles, not just because their family operates a home you’ll be… and the secret passenger cars and trucks. This company remodeling business. Some carry greeting is to ask the right modified its facilities to handle commercial cards for which female customers are questions of the right vehicles and motor coaches in addition to especially appreciative. Most offer a free cup people, the people with the passenger vehicles. They also added the of coffee in their lounge or waiting area, but power to purchase, related ability to detail vehicles to their skill sets. that does not mean that charging for the to how they like to buy, Remember, many people who travel in an donut or muffin that someone might like with what they buy, when they RV often have a passenger vehicle in tow. that coffee is out of the question. The buy and under what So, they not only need lubrication for their waiting area is also a great place for conditions they will buy, RV, but for their passenger vehicle as well. displaying AMSOIL posters, banners and and then make certain that brochures to additionally promote business. your product Some of the newest Quick Lube operations recommendation meets have added other amenities to their All of these types of ideas will keep those exact standards. locations in an attempt to broaden the customers coming back, and it can’t hurt outlook on services that are provided. An when Dealers are trying to get new people example is a quick lube location that to come to a customers Quick Lube connected a sit down coffee shop, complete operation. It is important to bring ideas to with drive-up window, to their facility. There customers that will increase their car counts. are others that have gone so far as turning the waiting room into a model kitchen, Quick Lube for the Truck Market Strong growth is expected from Quick Lubes centers use substantial amounts of AMSOIL being built at truck stops hoping to generate Synthetic Diesel Oil, but they can also utilize business from truck fleets. Quick Lubes are AMSOIL Synthetic Gear Lubes, Diesel Fuel aggressively marketing to fleets offering Additives, Synthetic Transmission Fluids, value added services, such as on-site oil Synthetic Greases, oil filters and the Dual analysis and other popular services not Gard By-Pass Oil Filtration System. AMSOIL often found at truck stops. Quick Lube appearance products are also ideal for this centers are also offering the ability to quickly market and should be suggested to Quick communicate truck maintenance information Lube owners/managers. back to the trucking fleets, which most shops feel is critical to attracting new fleet It’s important that a Quick Lube customer be business. Many trucking fleets are able to convey to his customer (the trucking outsourcing oil changes to Quick Lubes fleet) the advantages of not only switching during slower business periods, which oil changes over to the Quick Lube, but the allows the cutting of overhead at existing benefits of using AMSOIL as well. The cost facilities or the closing of maintenance saving to a fleet customer is significant if facilities completely. It’s also a big plus when they can avoid hiring just one additional business is good, allowing trucking fleets to mechanic. This can provide a serious boost avoid the major expense of adding to the fleet businesses bottom line. additional mechanic’s to accommodate new business growth. Example of the cost involved in hiring that new mechanic: Concerns with the quality of the service offered by truck stops and Quick Lube • Mechanic Salary: $20.00/hour centers are being addressed as major • Annual Hours Worked: 2080 OEM’s get involved with service centers. For • Annual Salary: $41,600.00 example, Volvo Trucks of North America is a minority owner in Petro Truck Stops, and TA Often times the additional cost of an has a similar arrangement with Freightliner. employee is not considered. For example, These OEM alliances offer credibility to insurance, social security, and other benefits service centers and quick lubes. could push the cost of that new hire to over $50,000. This gives Dealers the opportunity This shift to Quick Lubes by truck fleets to show Quick Lube accounts how they can presents a huge opportunity for AMSOIL present significant cost savings to their fleet Dealers. Not only will Quick Lube truck customers by using AMSOIL and taking full Quick Lube Page 8 11/06 Quick Lube for the Truck Market (cont.) advantage of AMSOIL extended drain to the Quick Lube customer the intervals. All the truck fleet owner needs to environmental benefits of using AMSOIL. do is utilize a Dealers customer’s Quick Even if it’s a fleet customer that is using a Lube and make the switch to AMSOIL. Quick Lube to perform oil changes, environmental concerns have become a When showing a prospect the advantages major issue for today’s industrial customers. of AMSOIL, Dealers should be prepared to demonstrate, with paper and pen, how Another important selling tool to use is oil money can be saved by using AMSOIL. analysis. Dealers should make a Basic information should be obtained before recommendation to the Quick Lube owner the sales call; information such as the size for the use of oil analysis for determining oil of the fleet, mileage or hours between drain change intervals in their fleet customers intervals, and working the math should all vehicles. Oil analysis will provide fleet be done prior to the presentation. Dealers customers with accurate information as to should also know that by using AMSOIL, a when they should change oil based on customer can save money and receive the need, and not just miles or hours. The benefits of better engine protection, better Dual-Gard By-Pass Filter, along with oil low temperature performance, and better analysis, would be very cost effective for gas mileage. Dealers should also point out fleet operations. Cost Savings for Fleet Customers The approach to a fleet customer is much AMSOIL Maintenance Schedule: different than that of someone driving a Oil Change interval @ 25,000 miles personal vehicle, although a Dealer should still be able to show the Quick Lube • Oil Change Cost (5-quarts of AMO) $99.95 operator examples of how they will benefit • Number of oil changes per year – 1 by switching from petroleum-based oil to • Total Annual Cost: $99.95 AMSOIL synthetic oils. When making a sales call, Dealers need to be prepared to Annual Savings of $108.05 show the customer the numbers (make sure to do the math during the presentation) right Not only will the fleet owner save money by in front of them. When the customer switching to AMSOIL, but they will also see observes the Dealer illustrating the cost better engine protection, better low savings and sees the numbers, it makes it temperature performance, and better gas extremely difficult to refute the facts. It also mileage, as well as the environmental shows exactly how he should show these benefits of using AMSOIL. The customer numbers to customers and establishes and the fleet owner will appreciate the Dealer credibility when it’s time to close the positive environmental impact we’d see in sale. the United States if every business would reduce their oil changes down to one per Here is an example: These numbers are vehicle, per year, using AMSOIL’S synthetic fictitious, so Dealers should obtain the oil. correct information from each prospect, and then work the formula using those specific It is vitally important for Dealers to study numbers. Assume a customer is putting and work the above formula until 24,000 miles on their vehicle in a 12-month comfortable presenting it to fleet prospects period. as presenting in a smooth and confident manner reflects well on the presentation as Current Maintenance Schedule: a whole. Oil Change Interval @ 3,000 miles • Oil Change Cost (5 quarts of oil and filter)-$26.00 • Number of oil changes per year- 8 • Total Cost- $208.00 Quick Lube Page 9 11/06 Sales Tip: Remember, Target Market Business Plan the average ticket of a smaller operation is $40.36 It is necessary for Dealers to study the competition. When deciding to approach a and $50.49 for franchise Quick Lube market whenever possible, as Quick Lube, a Dealer needs to make sure to type operations. Speak in well as possibly subscribe to magazines know whether it is an independently or terms of increasing their specific to this industry, find information on corporately owned operation and what ticket and they will know the Internet, etc. to stay up-to-date on product they are “pushing” in their particular that you have done some industry knowledge. It is also important for operation. research as to their Dealers to know the AMSOIL products and industry. the Quick Lube program, and be very Bring some ideas as to how they can knowledgeable about the Retail-on-the-Shelf increase their business over and above the Program (G-1001) and the Commercial and use of AMSOIL. A Dealer should make Retail Marketing Procedures (G-1097). certain to add value to the visit by providing assistance in an area that may not have A driven Dealer should learn the name of anything to do with his product or service; the manager and/or owner of the Quick this will help to instill trust and confidence in Lube, find out how long they have been in a prospect. business and locate their nearest significant The Power of Promotion If a Dealer wants business to grow and they organized the gathering. If there thrive, it is essential to promote it and since seems to be someone who does not appear Dealers are their own business, it is a must to be involved in a discussion, and is to promote themselves. For many people, perhaps a little shy, it helps to engage him this is not an easy thing to do. The tips or her in conversation and ask about his or found below are ideas, in addition to the her profession. This will help everyone feel Selling AMSOIL FST, that should be useful. more comfortable and leave a feeling of appreciation amongst potential customers. It can be particularly difficult or stressful to praise one’s own capabilities, as it is always Write a sales piece about your easier to speak of others in that sense, but business promoting your business, and yourself, is a This is a great exercise, even if never shown necessary part of doing business. Below are to anyone. Compose this sales piece as if it just a few ways of promoting business. were being written by another person looking at your business, and make sure to include flattering descriptions. How can a Inform all contacts and associates person or business benefit from using about your new AMSOIL business AMSOIL? How great are the services Successful people know that the secret to offered? How good is the training? How long being in the right place at the right time is to have you been in the business? What is be everywhere all the time. Dealers should your background? After a number of drafts talk with many people to let them know have been completed, confidence should exactly what their business is, what it is all rise as to promoting your business and about and how it will lead to great other people will pick up on this fact. When successes. The biggest mistake that most a Dealer is confident about their business, people make is assuming that other people others will be confident about doing are not interested in AMSOIL when in reali- business with them. ty, everybody is interested in protecting one of the biggest investments of they will ever Contact Radio & TV Stations, as make. well as a local paper, and offer to write a free "advice or tips" column Learn to network While this is quite a commitment, it is an When at an event, Dealers should make activity that most Dealers do not think sure to carry business cards and also to put about. This could be a great way to get your AMSOIL business cards in one pocket, and name out into the community as well as those collected from others in a separate setting yourself up as the professional in pocket as there is nothing more lubrication in your community and embarrassing then pulling out a business surrounding geographic area. (Not card of a competitor when attempting to necessarily recommend for a new or reach for your own. A Dealer can act as if inexperienced Dealer.) Quick Lube Page 10 11/06 When setting this The Sales Process appointment, you may want to say Set the Appointment Asking Questions something like: Set an appointment with the owner or Asking the right questions will assist in manager. Make sure to set the appointment getting to the customers main concerns. The with the decision maker as to bringing in main purpose of questioning is to determine “Hello Bob, my name is new product lines. Let’s imagine that you are or unearth the strongest benefit that a John Doe. I am an approaching an independently owned quick prospective client would gain by doing Independent AMSOIL lube operation, someone who competes business with you. The great thing about this Dealer with a with the national quick lube chains. (See fact is that the answer is already known. demonstrated track record optional sales call script in left margin.) Unfortunately, the prospective client might of increasing the profit not always see the light and realize the margins of Quick Lube The Sales Call benefit of offering AMSOIL to customers. operations just like yours. After the appointment is set, a successful Good questions will help to build a trusting AMSOIL is the leader in salesperson knows that business people are relationship with the client. As was stated synthetic lubricants for the busy people. By agreeing to meet, the earlier, no one will buy from you until they automotive quick lube prospect is making an investment of his or know your interests go further than the next market and I know that you her time. The business owner will expect to sale. Use open-ended questions-- who, probably operate on get something out of this meeting. If a what, where, when and how--to make sure smaller profit margins than structured sales process is followed, the prospective client provides as much most corporately owned everyone involved will get exactly what was information about their operation as operations. Would you expected. possible. When you ask a question, remain meet with me for 15 silent until the prospective customer has minutes over a cup of Introducing Yourself answered. The prospect should be doing coffee and see how you Successful AMSOIL Dealers should be sure 80-90% of the talking in this phase of the can make some decisions to smile when greeting the prospective sales process. If the Dealer is doing most of that will increase your customer. It is important to be very the talking, the right types of questions are profit margins even while professional and carry a great deal of not being asked. performing fewer oil self-confidence into this meeting, if you are changes? Of course, if you Sales Tip: well prepared. Make sure that introductions continue to perform the If you think of a question to ask during this are clear, stating first and last name, and same number of daily oil phase of the sales process, be sure to write then set the scene by explaining the exact changes, your profits will it down so it can be asked later in the purpose of the appointment, which should increase. Your time will process. If you don’t write it down, you will center on the client. (See optional NOT be wasted –because forget. introduction below) Ask if it is all right to your day-to-day challenges take notes, which shows politeness and that are very important. Would it is understood that some business Presentation you please meet with me information discussed may be sensitive. The The presentation should focus on the under these conditions?” next step at this point is to sell yourself. The benefit a client will receive once they begin perspective client will not buy until they trust carrying the AMSOIL product line and the Sales Tip: you and understand that their best business service that a Dealer will render. It is By taking this approach, a interests are at heart. After completing this important to focus on matching the benefits Dealer is informing this step, it is time to start asking questions. of AMSOIL with the needs of the prospect manager/owner that their that were identified in the questioning time is valuable and that Try this introduction: phase. This phase of the sales process you know a little bit about “Good morning! My name is Bob Smith and must meet the needs of the prospect or they his business. They will I want to thank you for the opportunity to will not think about buying. A Dealer should appreciate being introduce you to AMSOIL synthetic lubri- steer clear of simply discussing the approached in this manner. cants. As we discussed over the phone, your profit margins are probably a little smaller technical aspects of AMSOIL products than those of a corporately owned opera- without connecting the benefit for the tion, so I want to show you how to increase prospect. Decision makers will buy when your average ticket price and increase your they are satisfied that their decision will profits. Do you mind if I take notes during either make them money and/or decrease our discussion so I make sure not to miss the amount of labor time currently being anything? Thank you. Just so you know, expended. AMSOIL has been the “First in Synthetics” since 1972, so you will be dealing with a A Dealer must remain in control of the company that has a proven track record of presentation, but make sure to do so in a helping operations just like yours for over 30 stress-free way. If the answer to a question years.” is unknown, admit that you don’t know and Quick Lube Page 11 11/06 Sales Tip: Never knock The Sales Process (cont.) the competition. If you do, it will damage your promise to get back to them at a later time, techniques” that are used in order to finalize credibility and integrity. So, then be sure you keep that promise. Invite a sale. Many of these closes, such as, “Do whatever you do, don’t questions at the end of the presentation, or you want to use your pen or mine to sign imply anything disparaging anytime during the presentation, whichever the order?” or "I have found that only about the competition. is preferable. If presenting to a person who people who appreciate the best quality buy is not particularly friendly, be sure to stay AMSOIL-how do you feel about using the relaxed and let the benefits of AMSOIL best quality product available?” are used on products win them over. a regular basis. Dealers need to be careful not to make clients feel like they are “being Following this step with putting a pencil to sold.” the paper and show prospective clients how they can make more money by suggesting Good•Better•Best Examples to customers that they use AMSOIL. Give examples of other automotive products that have a “good, better, best” approach. Overcoming Objections and Closing For example: the Sale Sales Tip: Make sure This is where selling really begins. The first Car batteries: that you pass up any thing that should be done is to qualify the chance of getting into an objection by asking questions. Establish Price Range: Good Better Best argument with your what the objection is by asking, “Why do $39.90 $54.99 $69.99 prospective client. Even if you feel that way?” or “Why do you say you win the argument, you that?” It will probably be necessary to Naturally, there are differences in these car will probably lose the sale. explore further with the prospective client in batteries. If the good battery is purchased, it You will want to keep the order to find the real issue. Some objections will come with a sixty-five (65) month discussion cooperative so come from misunderstandings and some warranty and if it fails in the first twelve you can work with your are simply used to disguise other issues months, it will be replaced. The better prospective client to find that need to be uncovered. Sometimes an battery provides a little more power than the an answer to the question objection simply means that they are looking good battery as well a seventy-two (72) at hand. for more information. A Dealer will want to month warranty and replacement at stay away from responding with a re-selling eighteen (18) months in the event of failure. of the product. Ask a question such as, “ I The best battery provides the most power can see how that might be an issue, so can and an eighty-four (84) month warranty and you tell me why and what is important for if it fails, a twenty-four month replacement you in this situation?” Avoid using the word policy. “but” as it is naturally a word that is challenging. Below, the same size tire, but from three different manufacturers, are compared. In this case as well, it is important to keep notes on the objections raised. This way, the Car Tires: objections can simply be crossed off the list as they are answered. Good Better Best BF Goodrich Bridgestone Pirella P6000 The objective of a prepared presentation is $100.10 $128.25 $201.40 to guide the prospective client through the selling process so well that there are very There are differences between tires, just as few objections. When this process is there were in batteries, and maybe labeling followed, the client won’t feel like they were the above tires as good, better, best is not sold, but they will feel like they were helped entirely fair. The best tire for any vehicle will to buy. After the objections have been be determined by many different factors, but answered (there only should be a few) a as always, there are differences in quality, Dealer can ask for the sale by saying, construction and warranties. In the above “Would you like to go ahead and place your examples, the good tire has a warranty that first order?” Many times the prospect will covers manufacturing defects and materials. “close” the transaction themselves, which is The better tire has an 80,000 mile limited what Dealers are striving for. This indicates treadware warranty and road hazard that the presentation was well thought out protection and the best tire has a lifetime and professional. road hazard protection warranty. The bottom There are a great deal of “closing line is that there are different levels of Quick Lube Page 12 11/06 Sales Tip: Whether the The Sales Process (cont.) prospect buys or not, make sure that to ask two quality when it comes to tires, batteries and number of administrative duties are carried questions. One, ask why engine oil. out. they did or did not buy from you. This is very Dealers should point out to Quick Lube All paperwork must be filled out, in detail, in important. Also, ask them owners that just like other products, there order to complete the sales process. Make for a referral, again, are different levels of quality of engine oils, sure to follow-up with AMSOIL Corporate to whether they have and, if he points these differences out to his make sure paperwork has been received purchased from you or not. customers, both in the passenger and fleet and that the account has been created by vehicle markets, he can increase his profit checking in the Dealer Zone or waiting for margin by using AMSOIL. In fact, if they sell the new customer report to come in the batteries, ask the quick lube owner, “What is mail. Dealers should also make follow-up the best battery that you sell?” to which they contact with clients to verify that they are will most likely give a very definitive answer. happy with the process to this point. Now, ask the same question as to oil, “What is the best oil that you sell?” The answer, Dealers should be keeping track of sales, more than likely, will not be as near as not only dollar wise, but also success wise. decisive. Obviously, the answer to this Keep track of successes and why specific Sales Tip: Customers question is AMSOIL. customers bought from you. This will be will hold you accountable very helpful to other locations that run for what happens after the Follow-up similar operations. Also, keep track of total sale is made, and diligent There is a good deal of work to accomplish sales in dollars and compare this to where it follow-up will usually be after the sales process is complete. Actually, fits in with professional goals. rewarded with referrals to it could successfully be argued that the other clients. sales process is not complete until a Long Term Profitability Some oil change center operators worry Lube still makes as much as they would IF that over time, they will lose money if they all the customers changed their offer extended drain AMSOIL XL Synthetic conventional oil every 3,000 miles. They will Oils. However, AMSOIL XL Synthetic Motor still see their customers twice a year for Oil changes are priced to protect oil change add-on sales AND free up their bays for centers from losing money on extended more profitable services or more oil drain intervals. changes. Ask the Quick Lube owner if they would like to earn the same money for Example changing oil in 20 cars tomorrow as they earn for changing oil in 50 cars today. Now, Let’s say all the customers of the Quick imagine if 50 cars a day came to your Quick Lube change their oil every 3,000 miles, and Lube customer for an AMSOIL XL Synthetic 50 customers a day visit the oil change Motor Oil change. center to buy a conventional oil change (profit: $8.90). Daily Profit: 50 x $25.10 = $1255.00 Daily Profit: 50 x $8.90 = $445.00 Profits would increase $810.00 per day. ($1255.00 -$445.00 = $810.00) If ALL the Quick Lube customers switch to AMSOIL XL Synthetic Motor Oil, and come Can you afford NOT to offer the in for service every 7,500 miles, the Quick AMSOIL Lube can service ALL of them by seeing 20 7,500-Mile Oil Change Program™? customers a day. Now 20 customers a day buy an AMSOIL XL-7500 Synthetic Motor Oil change (profit $25.10) Daily Profit: 20 x $25.00 = $502.00 If ALL the Quick Lube customers switch to AMSOIL XL Synthetic Motor Oils and 7,500-mile oil drain intervals, the Quick Quick Lube Page 13 11/06 Demystifying the Female Motorist One of the most important market segments more than price, and as studies have shown for the automotive services industry is a that trust is the most important factor among female motorist. A recent study shows female motorists. This factor was cited by 70 nearly nine out of ten women are at least percent of the women in the survey. somewhat involved in the decision making process of their household’s vehicle The female motorist is an important maintenance and repair. segment to consider when developing marketing strategies. Service of a family The Automotive Aftermarket Industry vehicle is no longer the principal Association (AAIA) recently completed a responsibility of men. Getting in touch with study that found while roughly 78 percent of female motorists through education is the women feel that following the recommended solution to developing relationships with this maintenance schedule is important, 68 key demographic. Helping the female percent claimed to actually follow the motorist in understanding the importance of schedule closely. Do-it-for-me female proper maintenance, and why it is so customers believe that independent beneficial to them and the longevity of their facilities, such as quick lubes, are vehicle, will help build trust. Again, trust is trustworthy, offer a high level of customer the number one reason a female motorist service and have technical qualifications. chooses a particular service provider. These factors seem to drive their choice Checklist for Success As with any sales call, a Dealer should bring a number of promotional material items to back up statements. The list of material, found below, is very helpful for Dealers when making a sales call on a Quick Lube owner. Dealers need to make sure to know this material well, as it will give an advantage when speaking with prospective customers as well as project professionalism. Mandatory Sales Literature: • Increased Profits for Oil Change Specialists brochure (G-1401) • The XL Price Sheet (G-1402) • The XL Data Sheet (G-1404) • Can My Business Make Money Worksheet (G-1386) • The Right Environmental Choice Brochure (G-1059) • Product Catalog (G-290) • Save Time and Money Counter Top Brochure (G-1406) Miscellaneous Literature: • Triple Length API Sequence IIIF Testing Brochure (G-1916) • Gear Oil Testing Brochure (G-1903) Product Samples: • MP • MPHD • GVC Lithium Complex Grease • Saber Professional 2-Cycle Oil • Octane Boost Quick Lube Page 14 11/06 Products and Applications The AMSOIL XL-7500 Series is the perfect operations, AMSOIL SAE XL Synthetic product to suggest when speaking with Motor Oils provide clean, dependable Quick Lube owner/operators as this product lubrication and protection. is specifically designed for this market. Low Temperature Performance AMSOIL XL Series Motor Oils Wax-free synthetic stocks ensure the rapid AMSOIL SAE XL Synthetic Motor Oils are flow of motor oil throughout the engine after specially formulated to provide outstanding startup, protecting engines from wear. wear protection, power, fuel economy and AMSOIL SAE XL Synthetic Motor Oils low performance for up to 7,500 miles or six temperature fluidity also helps engines start month drain intervals, or longer, where dependably year-round and significantly stated by vehicle manufacturers or indicated improves cold temperature fuel economy. by electronic oil life monitoring systems. With AMSOIL XL Synthetic Motor Oil, Fuel Economy and Power motorists driving 15,000 miles a year need only change their oil twice annually. AMSOIL AMSOIL SAE XL Synthetic Motor Oils XL Synthetic Motor Oil offers a high degree enhance fuel economy and powerful of convenience and savings through its performance. A low coefficient of friction ability to perform and protect engines for ensures the maximum delivery of engine extended periods. The AMSOIL XL Motor power with minimal frictional losses. Oils are available in 5W-20, 5W-30, 10W-30, and 10W-40. Corrosion, Rust and Foam Control Thermal and Oxidative Stability AMSOIL SAE XL Synthetic Motor Oils seal out rust, neutralize acids and resist foaming. AMSOIL SAE XL Synthetic Motor Oils Rust inhibition is an especially important eliminate the need for frequent oil changes. feature for engines subject to frequent Outstanding thermal and oxidative stability short-trip operations or for stored engines. ensures long-term physical and chemical Acid neutralization protects engines from integrity of the oil after exposure to engine damage caused by corrosive by-products of operating temperatures. combustion. Foam resistance ensures protection against metal-to-metal contact Low Volatility and wear. Low volatility makes AMSOIL SAE XL Additive Durability Synthetic Motor Oils highly resistant to oil consumption. The oil continues to lubricate, AMSOIL SAE XL Synthetic Motor Oils maintain fuel economy, and reduces exhaust contains top-quality additives designed for emissions for an extended drain interval. long-term performance. AMSOIL SAE XL Synthetic Motor Oils protect engines from Shear Stability wear, corrosion, deposit accumulation and sludge buildup. The long-life additives in Superior shear stability ensures AMSOIL AMSOIL SAE XL Synthetic Motor Oils are SAE XL Synthetic Motor Oils maintain designed to keep engines clean and protective viscosity throughout extended protected for 7,500 miles or six months, or service life. The oil continues to protect longer with oil life monitoring systems. engine components from metal-to-metal contact and wear, especially in high Mixing AMSOIL temperatures. AMSOIL SAE XL Synthetic Motor Oils are High Temperature Performance compatible with conventional petroleum oils. However, AMSOIL does not recommend AMSOIL SAE XL Synthetic Motor Oils offer using a mixture of XL oil and conventional outstanding high-temperature engine oils for 7,500-mile or six-month drain protection and performance. Engines intervals. Engine oil additives are not operate in optimal temperature range in recommended for use with AMSOIL XL oils. high-stress conditions. In high-temperature It should also be clarified that you can use Quick Lube Page 15 11/06 Products and Applications (cont.) the AMSOIL XL product line for extending or six-month intervals, or longer with oil oil drains using conventional (non-AMSOIL) change monitoring systems. Change oil and air filters. aftermarket or OEM full flow oil filters with every oil change. Service Life In gasoline-fueled passenger vehicles in normal or severe service, change AMSOIL SAE XL Synthetic Motor Oils at 7,500-mile Miscellaneous Convenience Products BriteSide Heavy Duty Scrub Hand AMSOIL Engine Flush Cleaner with Pumice AMSOIL Fast Acting Engine Flush is made Heavy Duty SCRUB Hand Cleaner with from a carefully selected blend of solvents Pumice is a totally new formula and has and special cleaning agents that dissolve been engineered with the added cleaning and disperse harmful deposits formed in the power of pumice to cut through grease, oil crankcase, cylinder walls, pistons and rings and dirt with normal wiping motions. SCRUB of an internal combustion engine. When with Pumice comes in a specially designed used as directed, it cleans and restores container that is self-dispensing. By simply operating efficiency to valves, valve lifters, pressing on the top of the container, SCRUB rocker arms, and pistons for improved is dispensed upward and into hands. The horsepower, fuel economy, and pumice formula effectively cleans hands performance. Use before changing oil. with out the need for water. However, it also works just as effectively with water as a AMSOIL Anti-Freeze rinsing agent.SCRUB With Pumice utilizes a gentle lemon fragrance, not a harsh AMSOIL Antifreeze & Coolant is newly chemical smell like many other pumice- formulated to provide benefits far beyond based hand cleaners. The competitive those found in today's conventional pricing and large container size make antifreeze and coolant products. This SCRUB with Pumice an excellent choice for revolutionary formulation provides maximum workshops, repair centers and garages antifreeze and cooling protection in the most where large quantities of hand cleaner are extreme temperatures and operating used. conditions. And unlike conventional ethylene *All Quick Lube clients should be using this glycol based products, which are highly product. toxic and even fatal, AMSOIL Antifreeze & Coolant is formulated with propylene glycol. It is biodegradable and requires no special Pro Formula BriteSide Whitewall disposal costs or procedures in most areas. Tire Cleaner Above all, its low toxicity presents no threat to children, pets or wildlife. Concentrated chemical cleaner penetrates deep to clean and brighten whitewall tires without the need for abrasive scrubbers or harmful bleaching agents. Also cleans fireplaces, tennis shoes, grills, boat bumpers, floor mats, exhaust soot and other heavily soiled surfaces. Great for ring-around-the-collar, too! Rain Clear Windshield Protectant Maximize visibility in all kinds of weather. Rain, snow and sleet are repelled off glass. Wind action of driving forces moisture off the windshield, giving a clear view of the road ahead. Quick Lube Page 16 11/06 Conclusion All AMSOIL Dealers should be concentrating on The Quick Lube Market. As was stated earlier, Dealers should have a least one Quick Lube as a client to which people can be referred to when they ask where they can get their oil changed over to AMSOIL. Dealers need to make sure that their approach is one that focuses on the needs of the Quick Lube operator. Show this person how their profits can be increased on a per ticket basis and they will do business with you. Show them how they can be a step (or two) ahead of their competition by providing the finest in lubrication technology for their clients. Suggest to the Quick Lube customer that they should approach fleets in a little different manner than the personal vehicle market and offer assistance to the Quick Lube owner/manager in selling AMSOIL to fleets. The needs of a fleet are different and so the approach to this type of client should show an understanding of their needs and challenges. In conclusion, study the Quick Lube market, put together a plan for approaching owner/operators and practice the presentation that was put together. By following the steps outlined in this FST, an AMSOIL Dealer will find success. APPENDIX In the appendix you will find important sales tips and educational notes for Dealers who are serious about entering the Quick Lube market as well as examples of promotional material that you can make available to your Quick Lube customer. Quick Lube Page 17 11/06 A View from the Field Sales Tip: A good way to get an appointment is take Tips and educational notes from products, they will recommend them. Many your car in for an experienced AMSOIL Dealers times a customer will ask the owner or inspection or some work, technician what products they use and if complement the owner on Many times calling on a quick lube is they answer “AMSOIL,” the customer will be how good his shop looks, entering a hostile environment. Dealers more likely to choose AMSOIL. When that it is very professional, need to be aware that this potential exists. conducting training keep these thoughts in introduce yourself and get This is especially important to new dealers mind. Training normally cannot be done the conversation turned who have not made many, if any, calls on during business hours with the most around to AMSOIL. Or, tell retail or commercial establishments. New common time to perform the training is an him you are looking for a Dealers dream of getting the “big one” and hour or two after closing. Be creative and facility to send your figuratively get a bloody nose on one of their fun, and if possible, order pizza, set up a customers to have their oil first calls. Dealers who experience harsh product display, talk about the product line changed to AMSOIL, and if rejection need to keep a positive attitude and how to offer the products to the he would be interested in with an understanding that Quick Lube customers. the business if they owners, like many small business owners, brought their own oil. Most are under a great deal of stress and may A Dealer should make selling synthetics fun will say they are interested not be very inviting on the first couple of and rewarding. Dealers can work with the in that business. sales calls. owner to see if they have any established reward programs to help sell certain The focus of the AMSOIL Dealer should be products at certain times of the year. on the independently owned Quick Lube Dealers can help Quick Lube owners operations, garages, etc., not the oil develop one if they don’t and here are some company owned chains. This does not mean ideas based off of other success stories: that an AMSOIL Dealer should not call on a chain store, just that independent • Quick lubes have internal promotional owner/operators have more flexibility as to programs they offer to their employees. They what products can be carried at their have a promo card with, say, 100 squares location and are not restricted by a on it. 10x10. The top prize is $100, or two corporate entity as to acceptable store prizes of $50, four $25 prizes, or even more. merchandise. Every time an employee sells the product being promoted, whether it is a transmission Follow-up is one key to signing up a Quick service or an AMSOIL oil change, they put Lube. Most sales are made after the 5th their name on a square. The more they sell, call, but most Dealers quit long before they the more squares in which they can put their get to the 5th call. Dealers need to be name, improving their chances of winning. realistic that they probably won’t get the When the card is full, the owner announces account on the first visit and must be the winning square(s) that were available and prepared when the Quick predetermined before the card was filled Lube is ready. out. Or, the winner is the tech with his name in the most squares, or 1st, 2nd and 3rd Dealers need to keep it simple for the Quick place. Whenever a Quick Lube uses Lube owner. Very seldom are they interested AMSOIL as the promo product, AMSOIL in becoming an AMSOIL Dealer up front. moves out the door. Offer the ROTS program, and let them know there are options to obtain commissions on • Some quick lubes have offered a $5 bill to their purchases “down the road,” if they are any tech selling an AMSOIL oil change, interested. Too many options up front may which is big money to a lube tech. However, confuse the owner and as a result the a Dealer should help train the techs on how owner won’t make a decision. to offer the AMSOIL oil change. When a customer pulls up, after eyeballing that their Once a Dealer has Quick Lube Dealers, car looks worthy of AMSOIL, the lube tech they should expect to train the owner and asks the question, “Would you like to their techs on the products and the upgrade to AMSOIL’s 7,500 mile/6 month oil merchandising of the products if they expect change?” them to grow into a large account. One of the biggest factors in helping this is convincing the owners and shop technicians on the need to use AMSOIL. If they use the Quick Lube Page 18 11/06 A View from the Field (cont.) Help the Quick Lube Sell the Value charge more than for a synthetic that doesn’t have such tangible benefits. The current pricing structure is too low, Because of AMSOIL’s tangible benefits, which is probably due to the mind-set that customers will pay the higher ticket and customers won’t buy an oil change for more owners will sell more AMSOIL changes than than $25 and that the AMSOIL products they do other synthetics. aren’t that different from other synthetics. Dealers need to educate the Quick Lubes Brand extension is another huge benefit for on the added benefits / value AMSOIL has Quick Lubes. This means selling over other synthetic brands. Quick lubes complimentary AMSOIL products in addition must sell their other synthetic oil changes to the oil and filter, such as transmission for around $44.95 or more, whereas the fluid and gear oil. Keep in mind that a AMSOIL oil change needs to be at least bumper-to-bumper diesel pickup will $49.95 to $54.95, or even higher. It is generate about a $400 retail ticket at a justified because they are giving their Quick Lube when AMSOIL products are customers a tangible benefit – an extended used. oil change interval – for which they can MORE MONEY IN TEN SECONDS Oil change centers can make more money in ten seconds by asking customers if they would like to try a top-quality synthetic motor oil that may be used for 7,500 miles or six months and gives engines better protection than conventional oils. Experience shows about 25 percent of oil change customers will choose AMSOIL XL-7500 Synthetic Motor Oil if presented with a choice. Without AMSOIL XL Synthetic Motor Oil •50 customers a day buy a conventional oil change (profit: $8.90) $8.90 x 50 = $445.00 With AMSOIL XL Synthetic Motor Oil at a 25% response rate •37 customers a day buy a conventional oil change (profit: $8.90) $8.90 x 37 = $329.30 •13 customers a day buy an AMSOIL XL Synthetic Motor Oil change (profit: $25.10) $25.10 x 13 = $326.30 •Profit Grand Total=$655.60 Offering AMSOIL XL Synthetic Motor Oils increases profits $210.60 per day. $655.60 - 445.00 = $210.60 Example: Conventional AMSOIL XL Motor Oil Synthetic Motor Oil Oil change retail $21.50 $49.95 Oil cost - 5.00 17.25 Filter cost - 2.00 2.00 Labor cost - 5.60 5.60 Profit $8.90 $25.10 Quick Lube Page 19 11/06 Looking to Save Time and Money? Switch to Ask about the 10,000-Mile Oil Change Only $69.99 (Five Quarts) Each additional quart $9.00 Benefits Include: •Improved Cold-Temperature Starts •Better Engine Protection •Reduced Maintenance Costs •Less Time Spent Waiting for Oil Changes •Less Dependence on Foreign Oil With other motor oils, the recommendation is 3,000-mile oil change intervals. That’s $75.00 and three trips to the mechanic! Quick Lube Page 20 11/06 CAN MY BUSINESS MAKE MORE MONEY IN TEN SECONDS? Example: Profits Per Oil Change-My Usual AMSOIL XL Oil Change Syn. Motor Oil Change My usual oil change retails for + _________ AMSOIL Syn. XL retails for + $49.95* My usual oil cost (5 qts) - _________ AMSOIL Syn. XL oil cost (5 qts) - $17.25** My usual filter cost - _________ My usual filter cost - ________ My usual labor cost - _________ My usual labor cost - ________ My usual profit per oil change _________ (A) My oil change profit with AMSOIL ________ (B) How much more do I make on each AMSOIL XL Synthetic Motor Oil change? (B)_______ - (A)_________ = $ (I) Example: Profits at a 25% Response Rate to AMSOIL XL Synthetic Motor Oils My usual daily customer count no. of vehicles ___________(C) Without AMSOIL XL Synthetic Motor Oil My daily profits when all my customers buy my usual oil change: (A)______ $ x (C)_____ = $ (D)______ With AMSOIL XL Synthetic Motor Oil 75% of my oil change customers: (C) x .75 standard customers ___________(E) 25% of my oil change customers: (C)______ - _______(E) AMSOIL XL customers _______ (F) 75% of my customers buy my usual oil change (A)$______ x ______(E) $__________ (G) 25% of my customers buy an AMSOIL XL Synthetic Motor Oil change (B)$_______ x ______(F) + $________ (H) My profit with AMSOIL XL-7500 Synthetic Motor Oil (G+H) = $________ (I) How much more do I make with AMSOIL XL Synthetic Motor Oil? (I)______ - _______(D) = $__________ WHAT ABOUT LONG TERM PROFITABILITY? Example: My Present Profit Horizon Let’s say right now, all my customers change their oil every 3,000 miles. My usual daily profits when all my customers buy my usual oil change. $________ (D) Example: 100% AMSOIL XL Synthetic Motor Oil Profit Horizon with My Present Client Base Let’s say all my customers switch to AMSOIL XL Synthetic Motor Oil and change their oil every 7,500 miles. (C)________ x .4 = _________(J) (Calculation: I see the same number of customers in 40% of the time: 3000 ÷ 7500 = .4) My profits with AMSOIL XL Synthetic Motor Oils will be: (J)______ x ______(B) = $________ (K) Do my profits change if all my customers switch? (K)_____ - _______(D) = $ ________*** Example: 100% AMSOIL XL Synthetic Motor Oil Profit Horizon with My Present DAILY CUSTOMER COUNT Let’s say I service my usual daily customer count with AMSOIL XL Synthetic Motor Oil. My profits with AMSOIL XL Synthetic Motor Oils will be: (C)______ x ______(B) = $_______ (L) How much more do I make by offering AMSOIL XL Synthetic Motor Oil? (L)______ - _____(D) =$________ *AMSOIL suggests pricing the XL oil change at 2 to 21/2 times the price of your usual oil change. **AMSOIL XL Synthetic Motor Oil costs $3.45/qt., when purchased in quart containers, to $3.15/qt., when purchased in 55-gal drums. Example shows 5 qts. purchased in qt. containers. ***If your profits are not equal or greater with AMSOIL, you need to price AMSOIL XL Synthetic Motor Oil changes high er. AMSOIL suggests pricing them at 2 to 21/2 times the price of your usual oil change. G-1836 Quick Lube Page 21 11/06 Suggest that your Quick Lube customer post the following “Top Ten Reason to Use AMSOIL” poster behind their front counter. This will make for easy reference when speaking with a customer. Top Ten Reasons to Use 1. Extended Drain Intervals. Using AMSOIL means fewer trips the Quick Lube to get your oil changed. 2. It saves you money. Fewer oil changes and better fuel economy means more money in your pocket. 3. Improved gas mileage and lower emissions. The low viscosity of AMSOIL Synthetic Oil promotes maximum engine power, increasing fuel economy and reducing emissions. 4. Provides low temperature protection. The exceptional cold temperature properties of AMSOIL Synthetic Oil provide exceptional cold start lubrication in cold temperatures. Greatly reducing engine wear in sub-zero temperatures, it flows to all parts of the engine much faster then conventional petroleum oils. 5. Provides high temperature protection. AMSOIL’S outstanding heat-transfer capabilities keep engines operating at optimal temperatures in high stress conditions. 6. Inhibits rust and corrosion. AMSOIL contains special rust and corrosion inhibitors to protect engine parts. 7. Resists high temperature vaporization. Conventional motor oils “Boil off’ in high temperatures, losing up to 15% of their original weight contributing to excessive emissions and engine wear. 8. Resists oxidation and thermal breakdown. Conventional oils oxidize in high operating temperatures, producing sludge and deposit build-up that contributes to corrosion, engine wear 9. Up to twice the wear protection of other motor oils. AMSOIL additives protect engines by bonding to metal surfaces and forming a protective film between moving parts. 10. AMSOIL is the right Environmental Choice. If drivers used AMSOIL in place of conventional oil it would prevent billions of gallons of oil from being dumped into the environment. AMSOIL Synthetic oil resists chemical break- down and sludging and helps your engine run cleaner and reduce emissions. AMSOIL also improves engine life and fuel economy saving the customer money and reducing our use of fossil fuels. Quite simply it means fewer oil changes means less waste. Quick Lube Page 22 11/06 AMSOIL Dealer Quick Lube Questionnaire Asking the right questions is the goal of every AMSOIL Dealer when approaching prospective clients. The following questions should be very helpful in getting the information needed from prospective clients. 1. What is your average ticket? 2. What goals have you set to increase that average ticket? If they answer no to having set goals, ask why? 3. Would you like some help in determining what some goals could be? 4. What is your daily break-even point as to oil changes? 5. Do your employees promote ad on sales? How? 6. What areas within your dealership have the most potential for additional business? •How can AMSOIL help you tap that new business potential? 7. What is your largest ad on item? 8. Do your employees know the advantages of synthetic oils vs. petroleum-based oils? 9.What are your customer’s perceptions of: •AMSOIL? •Synthetic Oil? •The quality of other brand name oils? 10. Do you have regular scheduled dealership/store training? •Would you be receptive to my conducting an AMSOIL training session based upon an agreed upon agenda? 11. How do you market and advertise your business? 12. Do you market or have fleet vehicles as customers? 13. Do you know the number of miles your repeat customers average between oil changes? 14. What would be the most effective way for AMSOIL to assist you in selling more lubrication products to your customers? 15. How are your sales of the OEM synthetic and synthetic blend oils going? •Are the OEM’s offering you direct value-added sales and/or marketing support? 16. What are the most common reasons your current customers do NOT use AMSOIL products? 17. When your customers bring their vehicles in for service, do your employees recommend AMSOIL or the OEM products, and why? •If they are not recommending AMSOIL products would you mind if I scheduled a training session with the counter service staff so I can answer their questions about AMSOIL lubricants? 18. What’s your cost/quart of the major oil brand that you carry? •Typical minimum OEM Dealer Cost = $5.37 / quart •Typical OEM Retail Cost = $8.95 / quart •Can you share with me the actual profit per quart you realize when selling AMSOIL vs. the profit per quart earned when selling the OEM’s oil? 19. How does that compare with AMSOIL’s cost? •AMSOIL Dealer Cost = $_____ / quart •AMSOIL Suggested Retail Cost = $____ /quart •Can you share with me the actual profit per quart you realize when selling AMSOIL vs. the profit per quart earned when selling the OEM’s oil? 20. Would you mind posting the “Top Ten Reasons to Use AMSOIL” poster (in this appendix) at your front counter to assist your front counter person? Quick Lube Page 23 11/06 Month-by-Month Oil Change Profit for Quick Lubes Below is a spreadsheet that will show Dealers, and Quick Lube customers, exactly how the possible maintenance activity for their location can be viewed. This will also show customers how they can increase their bottom line by utilizing the use of AMSOIL products over a year’s time. This spreadsheet will show Dealers, and Quick Lube customers, how changing from a 3,000-mile petroleum oil change focus to a 7,500-mile or longer synthetic oil change will increase profitability. The first block of cells with the calendar shows the number of oil changes per month by oil type. Notice that as we progress through the year the number petroleum oil changes decreases and the number of synthetic oil changes increases. The bottom row shows the percent change by month. The second block of cells calculates the profit a quick lube will see from both petroleum and synthetic oil changes. The numbers are calculated by multiplying the number of changes shown in the first section by the amount of profit per change established by the quick lube owner. This value is input near the bottom of this sheet, on the left hand side. Dealers will want to pay close attention to these cells as they powerfully show the cost benefit of using the AMSOIL oil change program. The last block of cells calculates the Net value gained by implementing the AMSOIL synthetic oil change program versus using 100% petroleum oil changes. The grey boxes at the bottom left of the spreadsheet (these boxes start on the next page) are the input variables. Dealers should encourage customers to input their unique business parameters to see exactly how they can benefit from implementing the AMSOIL synthetic oil change program. The goal of using this profit calculator is to show customers how they can increase the bottom line is increased, over a year’s time, by utilizing the AMSOIL synthetic oil change program. Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Petroleum Changes 1200 1151 1102 1051 999 946 892 836 780 722 663 602 Synthetic Changes 0 61 122 185 250 315 382 450 520 591 663 736 Percent Synthetic 0 5 10 15 20 25 30 35 40 45 50 55 Petroleum Profit $10,680 $10,247 $9,805 $9,353 $8,891 $8,419 $7,936 $7,443 $6,939 $6,424 $5,899 $5,362 Petroleum Profit $0 $1,515 $3,060 $4,636 $6,244 $7,883 $9,554 $11,257 $12,994 $14,765 $16,569 $18,409 Gross Profit $10,680 $11,762 $12,866 $13,989 $15,135 $16,301 $17,490 $18,700 $19,933 $21,189 $22,468 $23,770 Net Profit Due to Synthetics $976 $1,971 $2,986 $4,021 $5,076 $6,153 $7,250 $8,368 $9,508 $10,671 $11,855 Year Gross Profit Combo $204,283.62 Year Profit from Synthetics $68,834.49 Petoleum Only Profit $135,449.13 Percent Increase Due to Synthetics 51% ASSUMPTIONS: Customers per Day 40.00 40.40 40.80 41.21 41.62 42.05 42.46 42.89 43.31 43.75 44.18 44.63 Customers PerMonth 1200.00 1212.00 1224.12 1236.36 1248.72 1248.72 1261.21 1273.82 1286.56 1299.43 1312.42 1338.80 Total Visits per Year 15,219 Petoleum Oil Change Profit $8.90 Synthetic Oil Change Profit $25.00 Percent Customer Growth* 1.0% * - Growth can be normal growth and/or can be additional customers served in the open slots provided by the synthetic customers not coming in as often. Quick Lube Page 24 11/06 DIFM AMSOIL vs. Petroleum Oil Price Differences The following examples are of price comparisons for using AMSOIL vs. Quick Lube operations. These comparisons should be of assistance to Dealers when discussing the use of AMSOIL vs. conventional motor oil with Quick Lube own- ers or managers. QUICK LUBE INSTALL PRICING COMPARISON XL-7500 SERIES Quick Lube Comparison--12,000-miles Conventional motor oil at 3,000-mile drain intervals (Passenger cars) Quick Lube price per 3,000-mile drain intervals $24.95 Amount of oil & filter changes needed 4 Total Expense per 12,000-miles/1-year $99.80 AMSOIL at 7,500-mile drain intervals Quick Lube price per 7,500-mile drain intervals $49.95 Amount of oil & filter changes needed 2 Total Expense per 12,000-miles/1-year $99.90 **Comparison based on driving 12,000-miles/1-year, and a 5-quart oil capacity AMSOIL COSTS $0.10 MORE per 12,000-miles/1-year** Keep in mind that even though the above example shows that AMSOIL is .10 cents more per year, the customer saves time (which means money), receives better engine protection and will only require two oil changes a year. The Quick Lube Operator also benefits because their profit margin is higher on AMSOIL oil changes than with petroleum products. Quick Lube Comparison--15,000-miles Conventional motor oil at 3,000-mile drain intervals (Passenger cars) Quick Lube price per 3,000-mile drain intervals $24.95 Amount of oil & filter changes needed 5 Total Expense per 15,000-miles/1-year $124.75 AMSOIL at 7,500-mile drain intervals Quick Lube price per 7,500-mile drain intervals $49.95 Amount of oil & filter changes needed 2 Total Expense per 15,000-miles/1-year $99.90 **Comparison based on driving 15,000-miles/1-year, and a 5-quart oil capacity Monetary Savings with AMSOIL=$24.85 per 15,000-miles/1-year Quick LubeT Page 25 11/06 Quick Lube Comparison--25,000-miles Conventional motor oil at 3,000-mile drain intervals (Passenger cars) Quick Lube price per 3,000-mile drain intervals $24.95 Amount of oil & filter changes needed 9 Total Expense per 25,000-miles/1-year $224.55 AMSOIL at 7,500-mile drain intervals Quick Lube price per 7,500-mile drain intervals $49.95 Amount of oil & filter changes needed 4 Total Expense per 25,000-miles/1-year $199.80 **Comparison based on driving 25,000-miles/1-year, and a 5-quart oil capacity Monetary Savings with AMSOIL=$24.75 per 25,000-miles DIFM AMSOIL vs. Diesel Oil Price Differences Quick Lube Comparison--Diesel Conventional motor oil at 3,000-mile drain intervals (Pickup Trucks) Quick Lube price per 3,000-mile drain intervals $29.99 Amount of oil & filter changes needed 10 Total Expense per 30,000-miles/1-year $299.99 AMSOIL Diesel Oil at 7,500-mile drain intervals Quick Lube price per 7,500-mile drain intervals $54.95 Amount of oil & filter changes needed 4 Total Expense per 30,000-miles/1-year $219.80 **Comparison based on driving 30,000-miles/1-year, and a 5-quart oil capacity Monetary Savings with AMSOIL=$80.19 per 30,000-miles Note: AMSOIL Product Change Interval Guide states Diesel Pickup trucks may go up to 2-times longer than manufacturer recommendations for 6-monts unless oil analysis is used. 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