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Jobbers World Online News Briefs is a service to
Subscribers to the Jobbers World Newsletter.
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Big Changes at CITGO |
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CITGO had its big marketers meeting at the beautiful
Phoenician in Phoenix Arizona last week. And in
spite of some of the coldest temperatures recorded
in 19 years, marketers walked away from the meeting
with some very hot news. The hottest of the news was
said to be CITGO’s announcement that it will be
adding a new brand to its lineup – MileMaster.
According to marketers, the new brand, MileMaster,
will be offered as a price fighting “house brand”
designed to help marketers compete with the growing
segment of private label lubricants.
Marketers say another hot issue coming out of the
meeting was CITGO’s new organizational chart.
Complete coverage of the meeting will be covered in
the print issue of Jobbers World.
Factoid: For those of you with a touch of grey in
your hair, you may remember that the Milemaster
name is not new. In the 1950’s and early 1960’s,
Milemaster was the brand name for Cities Service’s
regular gasoline.
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More for Mopar |
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Word on the street is that Mopar, the automobile
parts and service arm of the DaimlerChrysler
American brands, announced a rather hefty price
increase for the Mopar genuine oil it sells to new
car dealers. Although unconfirmed by Mopar, dealers
Jobbers World spoke with say the price of Mopar
lubricants jump up nearly $1.80 a gallon, starting
on January 1, 2007. Whereas one dealer said he was
paying $6.45 a gallon for a 5W-30 in 2006, today its
cost is $8.00 a gallon. Similar increases were also
said to have impacted the price of all other
viscosity grades of Mopar lubricants.
But before dealers and others conclude someone
involved with pricing at Mopar must be either crazy
or overly courageous, there are several issues to
consider. First, although ExxonMobil has reportedly
increased the price it charges Mopar for lubricants,
according to dealers, Mopar has not pushed through a
price increase in about a year and a half. In other
words, an increase was long overdue when one
considers the number of times others lubricant
marketers increased prices over the same period.
The second issue to consider, however, may be
even more important. This issue speaks to changes
Mopar made to its dealer programs. The specifics of
these changes and their potential impact on what a
dealer actually pays for Mopar oil are discussed in
the upcoming print issue of Jobbers World.
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