money off a quart/liter of motor oil. I am talking in generalities. Does XOM make more from a quart of Dexos than Valvoline etc. Do the vertically integrated producers make more profit than the re-packagers? Do the boutiques make more per unit than a mainstream brand. Anybody have any insight into this subject? Don't forget advertising budgets and direct marketing and other sales types. It would be interesting to know how profitable/ how much markup on any given quart of oil.
Which brand makes the most ..
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I have precisely no factual evidence to back up what I'm about to say.
I think the mainstream brands make more. Economies of scale, Shell/ExxonMobil/BP/Chevron etc are far far larger than companies like Amsoil and Redline.
I think the mainstream brands make more. Economies of scale, Shell/ExxonMobil/BP/Chevron etc are far far larger than companies like Amsoil and Redline.
Well in the gasoline refinery side of things... The profit margin was 8-12% on average. My step father worked at the Amoco refinery in Yorktown Va. I'd be willing to bet it is not all that different in the actual motor oil side of things. Plus all the other products which are MANY made from oil is possibly in the range too.
I think this is a question that is impossible to answer. Most if not all of the major oil companies don't just produce oil. Besides the various fuels and lubricants they produce chemicals and elements needed for other industries. Plastics manufacturers get some of their ingredients from the oil companies. The oil companies are also investing in alternative energy sources.
The oil companies have diversified over the decades. They had to. Any company stuck on one single product is not going to last long in this day and age.
The oil companies have diversified over the decades. They had to. Any company stuck on one single product is not going to last long in this day and age.
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
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Mobil spends big time on advertising/marketing. That cuts into profits.
Havoline doesn't seem to advertise much; other 'second and third' string brand also.
My 2¢
Havoline doesn't seem to advertise much; other 'second and third' string brand also.
My 2¢
I believe the rebranded gas station stocked quarts of oil probably have the best ROI per quart for the company.
Average Consumer notices check engine light,
Pulls into X gas station,
Checks oil,
Appears low,
Buys 2 quarts of repackaged Warren or Old World Industries oil for 5.99/at.
Meanwhile, Supertech or Peak, the same oil, is sitting at Walmart or Biglots for 2-3$ a qt
I worked at a C Store for awhile. A quart of the oil to the store cost around 1.50$, was sold for 5.99$
Average Consumer notices check engine light,
Pulls into X gas station,
Checks oil,
Appears low,
Buys 2 quarts of repackaged Warren or Old World Industries oil for 5.99/at.
Meanwhile, Supertech or Peak, the same oil, is sitting at Walmart or Biglots for 2-3$ a qt
I worked at a C Store for awhile. A quart of the oil to the store cost around 1.50$, was sold for 5.99$
Originally Posted by GumbyJarvis
I believe the rebranded gas station stocked quarts of oil probably have the best ROI per quart for the company.
Average Consumer notices check engine light,
Pulls into X gas station,
Checks oil,
Appears low,
Buys 2 quarts of repackaged Warren or Old World Industries oil for 5.99/at.
Meanwhile, Supertech or Peak, the same oil, is sitting at Walmart or Biglots for 2-3$ a qt
I worked at a C Store for awhile. A quart of the oil to the store cost around 1.50$, was sold for 5.99$
I once had to pull into a gas station for a quart of tranny fluid (ten years ago). To this day it still bothers me that I paid whatever I paid at that time (can't remember but it was a lot) for some no name brand transmission fluid. It still bothers me. Haha...and I'm not really kidding...sometimes I still drive by that gas station and think...supply and demand, you guys got me...I had to have it and you deservedly won that battle.
I believe the rebranded gas station stocked quarts of oil probably have the best ROI per quart for the company.
Average Consumer notices check engine light,
Pulls into X gas station,
Checks oil,
Appears low,
Buys 2 quarts of repackaged Warren or Old World Industries oil for 5.99/at.
Meanwhile, Supertech or Peak, the same oil, is sitting at Walmart or Biglots for 2-3$ a qt
I worked at a C Store for awhile. A quart of the oil to the store cost around 1.50$, was sold for 5.99$
I once had to pull into a gas station for a quart of tranny fluid (ten years ago). To this day it still bothers me that I paid whatever I paid at that time (can't remember but it was a lot) for some no name brand transmission fluid. It still bothers me. Haha...and I'm not really kidding...sometimes I still drive by that gas station and think...supply and demand, you guys got me...I had to have it and you deservedly won that battle.
I make more money when Mobil sells a quart, gallon, or barrel of Dexos oil than I do from a quart, gallon, barrel of Dexos Valvoline cause I don't own any Valvoline stock. Exxon/Mobil has paid me what I consider to be fair for a resource stock that has doubled in the past decade. Chevron has performed even better over the past decade and to the best of my knowledge they don't spec a Dexos oil, I own Chevron also for well over a decade. That's about the only answer I can offer you, even though its not the question you asked.=)
Originally Posted by Mad_Hatter
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
If i were to guess i would say Warren. I lost count at how many house brand oils and products they provide.. didnt know they also did Gumout.
Originally Posted by KneeGrinder
Originally Posted by Mad_Hatter
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
Books can be " shaded " in one direction or another . But , yes , you are correct , to the best that can be done .
But why worry about that aspect of it . Just shop around and buy the sales / bargains / clearances .
Originally Posted by Mad_Hatter
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
Books can be " shaded " in one direction or another . But , yes , you are correct , to the best that can be done .
But why worry about that aspect of it . Just shop around and buy the sales / bargains / clearances .
Originally Posted by WyrTwister
Originally Posted by KneeGrinder
Originally Posted by Mad_Hatter
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
Books can be " shaded " in one direction or another . But , yes , you are correct , to the best that can be done .
But why worry about that aspect of it . Just shop around and buy the sales / bargains / clearances .
What do you mean by "shaded" because when I read "shaded" I'm thinking of "cooking the books" and that could very well be a crime, especially so when you have investors or partners.
Originally Posted by KneeGrinder
Originally Posted by Mad_Hatter
Unless you're an investor, either institutional or small time shareholder, that's virtually impossible to know. Some of this info is purposely kept confidential to prevent a (leveraged) buyout or for keeping your competitors in the dark about struggling business units.
If it's a publicly traded company you can glean info from SEC filings but I doubt it paints the whole picture.
I believe the only way to find the real truth, and it would change constantly on a cost basis for the base stock and additive pack would be to actually see the accounting books. I see no other way due to all the other products the companies sell to figure it from SEC fillings. Individual investors only see dividend profits and profit loss sheets.
Books can be " shaded " in one direction or another . But , yes , you are correct , to the best that can be done .
But why worry about that aspect of it . Just shop around and buy the sales / bargains / clearances .
What do you mean by "shaded" because when I read "shaded" I'm thinking of "cooking the books" and that could very well be a crime, especially so when you have investors or partners.
Originally Posted by PimTac
I think this is a question that is impossible to answer. Most if not all of the major oil companies don't just produce oil. Besides the various fuels and lubricants they produce chemicals and elements needed for other industries. Plastics manufacturers get some of their ingredients from the oil companies. The oil companies are also investing in alternative energy sources.
The oil companies have diversified over the decades. They had to. Any company stuck on one single product is not going to last long in this day and age.
You can be sure that the oil companies know, but will they tell us? My department (internal IT support) know exactly how much each call into our call center costs, how much per minute it costs our company when our client service portal goes off-line, etc.
Generally speaking, the larger manufacturers can leverage economies of scale and turn a larger profit. As far as marketing goes, the intent is to increase the perceived value of a product by a greater amount than is invested, so that might no eat as much profit as ou might think.
I think this is a question that is impossible to answer. Most if not all of the major oil companies don't just produce oil. Besides the various fuels and lubricants they produce chemicals and elements needed for other industries. Plastics manufacturers get some of their ingredients from the oil companies. The oil companies are also investing in alternative energy sources.
The oil companies have diversified over the decades. They had to. Any company stuck on one single product is not going to last long in this day and age.
You can be sure that the oil companies know, but will they tell us? My department (internal IT support) know exactly how much each call into our call center costs, how much per minute it costs our company when our client service portal goes off-line, etc.
Generally speaking, the larger manufacturers can leverage economies of scale and turn a larger profit. As far as marketing goes, the intent is to increase the perceived value of a product by a greater amount than is invested, so that might no eat as much profit as ou might think.
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