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Castrol moves price |
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According to Jobbers World's sources, Castrol is the
first major to increase the price of its finished
lubricants in 2006. Taking effect on March 1, 2006,
Castrol will reportedly increase the price of all
Castrol GTX PCEO by $0.28 a gallon on bulk and $0.36
a gallon on packaged product. Its mid-tier PCEOs
(including GTX High Mileage, Startup, and Syntec
Blend) will reportedly increase $0.36 and $0.44 a
gallon for bulk and packaged, respectively. And
according to Jobbers Worlds sources, Castrol will
bump the price of its synthetic PCEO up by $0.64 a
gallon for both bulk and packaged product.
In addition to increasing the price of its
consumer automotive lubricants, Castrol reportedly
will also increase the price of its commercial and
industrial lubricants in March. Its conventional C&I
lubricants are reportedly moving up $0.28 a gallon,
and its synthetic C&I $0.48 a gallon.
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ExxonMobil is second to move...and an interesting
move it is |
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Within only one day of Castrol announcing an
increase in the price of its lubricants, ExxonMobil
followed with its price increase. According to
Jobbers World’s sources, effective March 1, ExMo
will increase the price of its conventional branded
and unbranded lubricants by an average of 8%. Its
synthetic lubricant prices are reportedly going up
4%.
Although ExMo's announcement would appear on face
value to be just another form letter about price
increases, it gets more interesting when one peels
another layer off the onion to look at some of the
detail. The first "that's interesting" starts with
the understanding that ExMo had previously informed
its marketers that Exxon Superfo will no longer be
made available to them in bulk. ExMo reportedly made
a decision to drop Superflo from its lineup at the
first of the year. This means that customers
formerly buying Superflo in bulk will now be
switched over to Mobil PCEO. For most this might
sound like a good deal if all things remain equal on
pricing. But they didn't. According to what Jobbers
World is hearing, ExMo is now offering it
distributor’s two choices when they buy Mobil PCEO.
The choices are to buy in Mobil with and without
"options." It short Jobbers World is told, "with
options" means the purchase includes certain
programs historically bundled with the product.
These programs are debundled from the offering when
the product is purchased by a marketer without
options. Now for the second "that's interesting."
ExMo's price for Mobil PCEO with options will
increase by $0.15 a gallon as of March 1, 2006. The
price for the same product without options will be
bumped up by $0.40 a gallon.
This means ExMo is now making the value of the
options more visible and maybe more importantly,
it's increasing the price of the Mobil without
options replacement for bulk Superflo in such a way
that buying with the options appears to be a good
deal for marketers and buying without the options is
a good deal for ExMo's bottom line.
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SOPUS takes off the gloves... |
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According to a number of industry sources, Shell Oil
Products recently restructured it lubricant price
schedule. Without mincing words, what Jobbers World
is hearing is that prices for Pennzoil and Quaker
State will likely be more competitive in 2006.
Similar to ExMo's approach of offering a with and
without options choice, SOPUS has reportedly put a
value on some of the program options it typically
bundles with its lubricants. Although unconfirmed by
SOPUS, the company is reportedly now prepared to
back out some program costs in an effort to reduce
its sticker price and regain some of the market
share it reportedly lost over the past few years.
SOPUS is reportedly in a position to make this
move due to its efforts over the past two years to
reduce costs. These efforts include improved supply
chain management, SKU rationalization, elimination
of selected direct delivery operations, and other
cost reduction efforts.
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Les Rudnick joins Ultrachem |
Ultrachem Inc. announced that Les Rudnick has
been appointed Technical Director. Les formerly a
faculty member at The Pennsylvania State University,
University Park, will be located at Ultrachem's
facility in New Castle, Delaware.
Les has over 20 years of industrial experience
with petroleum, lubricant and lubricant additive
companies. He has authored or edited over 85 journal
articles, book chapters and books, including
Synthetic Lubricants and High Performance Functional
Fluids, Second Edition, Lubricant Additives:
Chemistry and Applications, and the newly published
Synthetics, Mineral Oils and Bio-Based Lubricants:
Chemistry and Technology. Dr. Rudnick also serves on
the editorial board of the Journal of Synthetic
Lubrication.
Established in 1965, Ultrachem is one of the
oldest specialty lubricants compounders. Privately
held since 1984 by a group of key employees,
Ultrachem has built an impressive reputation as a
supplier of the OEM and industrial maintenance
markets.
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