Recent Topics
Does anybody else have reactions to MSG?
by Chris142 - 12/12/19 10:35 AM
injecter cleaner?
by ernied - 12/12/19 09:27 AM
Which would you use for 5k
by Bettez88 - 12/12/19 09:08 AM
Effective ways to reduce humidity inside the car
by MoneyJohn - 12/12/19 08:21 AM
Stupid regulations- Diesel Cap Color
by Rmay635703 - 12/12/19 08:20 AM
Help a not-so-noob: shear stability theory.
by OilStasher - 12/12/19 08:03 AM
Latest oil purchase for Lawnmowers
by Snagglefoot - 12/12/19 07:44 AM
Old school bra
by whizbyu - 12/12/19 07:10 AM
Tricky flight ticket change fees
by Superflan - 12/12/19 07:10 AM
2019 Jeep Rubicon F&R Axle UOAs [5,000 Miles]
by 2015_PSD - 12/12/19 06:58 AM
Redline SL-1. Application warning
by BMWTurboDzl - 12/12/19 06:51 AM
My Forester CVT blew up
by IMPALA08 - 12/12/19 06:30 AM
2016 Titan XD Cummins, Schaeffers 9000 5W-40
by 06_lx - 12/12/19 06:09 AM
Will moving steering via wheel hubs cause harm?
by mobilaltima - 12/12/19 12:26 AM
This oil looks interesting but not avail in US
by jkhawaii - 12/11/19 10:39 PM
Castrol Engine Shampoo (Oil Flush)
by adams355 - 12/11/19 10:03 PM
How Dumb can she get #2
by KeithS_NW_Ohio - 12/11/19 09:45 PM
Dodge Transmission
by Butterbean - 12/11/19 09:38 PM
Newest Members
lutvi20, Bazik, Lamasuna, berlinbai, SimpleGuy48
70111 Registered Users
Who's Online Now
100 registered members (Aichiguy, 2015_PSD, 12Fan, 77GrandPrix, 2010Civic, 13 invisible), 2,127 guests, and 20 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums67
Topics298,622
Posts5,139,324
Members70,111
Most Online3,589
Nov 2nd, 2019
Donate to BITOG
Print Thread
Hop To
Page 1 of 4 1 2 3 4
Why does Amsoil market the way it does? #5136382 06/17/19 07:36 AM
Joined: Sep 2018
Posts: 153
R
Redright9 Offline OP
OP Offline
R
Joined: Sep 2018
Posts: 153
Just as the title states, not trying to argue the quality of the oil, but just why do they market/sell the oil in the way they do? Wouldn't they make more money if they started selling it to big box stores? Why only sell through authorized sellers? I don't understand the reasoning behind this with them... Can someone help me understand why they sell this way?

Thank you

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136393 06/17/19 07:49 AM
Joined: Jun 2017
Posts: 1,022
J
JustN89 Offline
Offline
J
Joined: Jun 2017
Posts: 1,022
I doubt it would make a lot more money sold at box stores- put it on the shelf and it's instantly the most expensive oil at the store (the Signature Series line up, that is). They would have to price it at their "Preferred Customer" price to stay competitive with Royal Purple and it would still cost more. That said, I'm not sure why they model the way they do. My guess is that their current model allows them to spend very little on marketing as their dealers do most of the leg work for them. That's just a guess though.

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136396 06/17/19 07:51 AM
Joined: May 2012
Posts: 3,423
SubieRubyRoo Offline
Offline
Joined: May 2012
Posts: 3,423
If WM can sell RP on the shelf at the prices it does, with the volume they move I'm pretty sure Amsoil would be willing to play ball on the amount they'd purchase.

But, I'm sure Amsoil would just make an inferior blend for WM yet stick the same label on it as their regular stuff spank /pessimistic sarcasm

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136397 06/17/19 07:52 AM
Joined: Jul 2015
Posts: 5,483
M
madRiver Online Content
Online Content
M
Joined: Jul 2015
Posts: 5,483
A big box store HAS NO MARKETING. It is shelf space for a product that needs a rep to explain its benefits and why you would feel better about using it vs other excellent oils that are less expensive. Amsoil is half direct marketing and half product for people.

Once you loose marketing Amsoil is left with a more expensive price tag on huge shelf with a sea of products.

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136401 06/17/19 08:04 AM
Joined: Dec 2002
Posts: 1,851
R
Rat407 Offline
Offline
R
Joined: Dec 2002
Posts: 1,851
The system works well for AMSOIL now and no need to change. Like stated above, they really don't do much in the way of major marketing. If they went to the big box stores it would seriously hurt all the dealers kind of.

Plus there are probably a bunch of commercial accounts that move a bunch of product which brings in the money.


2002 Silverado 5.3 0w-20 AMSOIL®
Re: Why does Amsoil market the way it does? [Re: Redright9] #5136405 06/17/19 08:07 AM
Joined: Apr 2010
Posts: 4,322
B
BMWTurboDzl Offline
Offline
B
Joined: Apr 2010
Posts: 4,322
Low margin product and retail shelf space is expensive. AMSOIL, like Redline and Royal Purple, is a one-trick-pony unlike the majors so their chosen business model enables them to run the business profitably.

Last edited by BMWTurboDzl; 06/17/19 08:07 AM.

“It took untold generations to get you where you are. A little gratitude might be in order. If you’re going to insist on bending the world to your way, you better have your reasons.”

435i
Re: Why does Amsoil market the way it does? [Re: Redright9] #5136412 06/17/19 08:16 AM
Joined: Dec 2006
Posts: 20,696
A
aquariuscsm Online Content
Online Content
A
Joined: Dec 2006
Posts: 20,696
Since Redline is now a mass market corporate oil like Royal Purple (both are no longer “boutique mom and pop companies”) I wonder why it’s not sold at Walmart like Royal Purple now is?


1996 Nissan 300ZX 5-speed,Arctic Pearl(#175 of 300)
Quaker State Ultimate Durability 10W30
2012 Honda Accord Coupe EX-L 2.4,auto,San Marino Red
Quaker State Ultimate Durability 0W20

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136425 06/17/19 08:31 AM
Joined: Jun 2019
Posts: 544
F
Fawteen Offline
Offline
F
Joined: Jun 2019
Posts: 544
Amsoil uses MLM because it's more cost effective for them. It keeps prices inflated with several layers of middle men, and gives a perceived additional value for some. A couple times I've seen it on the shelf at a farm & home type store, but the prices were significantly higher than similar products and the bottles had a fair amount of dust on them.

Re: Why does Amsoil market the way it does? [Re: Redright9] #5136427 06/17/19 08:32 AM
Joined: May 2019
Posts: 2,931
M
Mad_Hatter Offline
Offline
M
Joined: May 2019
Posts: 2,931
The decision to rely on a network of distributors to market and sell your product (called a distribution channel) as opposed to relying on a retailers marketing, has advantages and disadvantages. Too many to list here without writing a book. But in short, a boutique or specialty item mfg like an Amsoil or Amway can better get their products into the hands (market penetration) of the people that are most likely to buy it using a dealer/distributor sales channel. The mfg has minimal to no marketing costs as the distributor does that in exchange for a slice of the pie. It's not uncommon for mfgs to prohibit a distributor from selling competitor products (captive).

I've been in sales and marketing for a while, most recently as a BDE in the service/software industry.

Last edited by Mad_Hatter; 06/17/19 08:50 AM.
Re: Why does Amsoil market the way it does? [Re: Redright9] #5136429 06/17/19 08:33 AM
Joined: May 2010
Posts: 1,404
R
racin4ds Offline
Offline
R
Joined: May 2010
Posts: 1,404
AMSOIL can be found in more and more places now, on the shelf. Rural Kings near me carry some of it now as does Napa stores. I'll use it and pay the premium for it when its there on a shelf and I can walk out with it same day. But if I have to "sign" up and go through all this hassle to get "preferred member" pricing and then pay shipping etc. It isn't worth the trouble. I'm going with something else.This is the main reason I have never tried Schaeffers oils in my PowerStroke, they are supposed to be the best oil made for a PSD but I'm not paying a premium for it, then paying shipping AND having to wait for it...


Just say NO to thin oils and M1!
05 F350 Powerstroke
05 Hyundai Tucson
08 Legacy GT
Re: Why does Amsoil market the way it does? [Re: Redright9] #5136436 06/17/19 08:43 AM
Joined: Dec 2016
Posts: 9,661
L
Linctex Offline
Offline
L
Joined: Dec 2016
Posts: 9,661
I can buy almost any Amsoil I want between what is stocked at the local Atwood's Farm and Ranch store, and the local independent biker shop.

Both places sell it for more than what a dealer charges.

I'm not into spending $14 for a quart of oil, so I'll stick with the 5 quart jugs I find on clearance.


"The evidence demands a verdict".
(Re:VOA)"it's nearly impossible to actually know the particular additives that are in there at what concentrations."
Re: Why does Amsoil market the way it does? [Re: Linctex] #5136454 06/17/19 09:12 AM
Joined: Oct 2009
Posts: 5,667
JohnnyJohnson Offline
Offline
Joined: Oct 2009
Posts: 5,667
Originally Posted by Linctex


I'm not into spending $14 for a quart of oil, so I'll stick with the 5 quart jugs I find on clearance.


When an oil is that good they should be able to warranty your engine for a million miles.


2004 Corolla 137480
Out: Havoline Pro DS 10w-30 Purolator PureOne 10-29-19 136457
In: Pennzoil Platinum HM 5W-20 ST 4386
2006 Duramax 76862
Out: T6 5W-40 XG9100 73909
In: Rotella Dino PH9100 11-3-19
Re: Why does Amsoil market the way it does? [Re: madRiver] #5136484 06/17/19 09:55 AM
Joined: Jun 2005
Posts: 13,754
bdcardinal Online Content
Online Content
Joined: Jun 2005
Posts: 13,754
Originally Posted by madRiver
A big box store HAS NO MARKETING. It is shelf space for a product that needs a rep to explain its benefits and why you would feel better about using it vs other excellent oils that are less expensive. Amsoil is half direct marketing and half product for people.

Once you loose marketing Amsoil is left with a more expensive price tag on huge shelf with a sea of products.



A lot of times in retail a company has to pay for the shelf space. Or they pay to be a preferred supplier and get their product on an endcap versus down an aisle.


2014 Ford Mustang GT Track Pack
1995 Ford Mustang GT

Ford/Mazda Parts Counter
NRA Benefactor Member
Opinions expressed are my own.
Re: Why does Amsoil market the way it does? [Re: Redright9] #5136485 06/17/19 09:57 AM
Joined: Oct 2009
Posts: 5,667
JohnnyJohnson Offline
Offline
Joined: Oct 2009
Posts: 5,667
Does it matter it isn't your business?


2004 Corolla 137480
Out: Havoline Pro DS 10w-30 Purolator PureOne 10-29-19 136457
In: Pennzoil Platinum HM 5W-20 ST 4386
2006 Duramax 76862
Out: T6 5W-40 XG9100 73909
In: Rotella Dino PH9100 11-3-19
Re: Why does Amsoil market the way it does? [Re: JohnnyJohnson] #5136504 06/17/19 10:32 AM
Joined: Jun 2009
Posts: 346
U
Uregina09 Offline
Offline
U
Joined: Jun 2009
Posts: 346
What a worthless response. Way to pad your post count while contributing absolutely nothing and wasting bandwidth.

Originally Posted by JohnnyJohnson
Does it matter it isn't your business?


Last edited by Uregina09; 06/17/19 10:32 AM.

2018 Ford F150 with 2.7 Ecoboost: Coop Sonic Gold SL 0W30 and Motorcraft FL2062

2016 Toyota RAV4: Pennzoil Platinum 0W20 and Denso 150-3021

Page 1 of 4 1 2 3 4
Previous Thread
Index
Next Thread

BOB IS THE OIL GUY® Powered by UBB.threads™