Start Your Own Private Brand Lubricant Distribu7on Business
Introduc7on
• Good morning everyone. I am Wilfredo Rances, Jr. or you can call me Jun for short. I am here to show you that there’s money in selling your own line of lubricants. Before forming my own company, Green and Natural Lubes Philippines Company, I was formerly the Managing Director of Valvoline Philippines. I was the one who set up the Philippine subsidiary in 2002.
Lubricant 101 • What is a lubricant? o Lubricant is a substance, oOen in liquid form, that is introduced between two moving surfaces to reduce the fric7on between them, thereby improving efficiency and reducing wear.
o Lubricants or lubes are composed of 90% base oil and the remaining 10%, addi7ves.
Lubricant 101 • What are the criteria of a good lubricant? o Lubricity -‐ A lubricant's ability to lubricate moving parts and reduce fric7on.
o Viscosity -‐ Measure of a fluid's resistance to flow and is the most important controlling property of lubricants.
Lubricant Products
• Diesel engine oil • Gasoline engine oil • 2-‐Stroke motorcycle oil
• 4-‐Stroke motorcycle oil
• Hydraulic oil • Marine oil
Market Opportuni7es • The local monthly consump7on is 15 million liters or P12 billion a year and growing.
• It is overpriced.
Market Opportuni7es
Market Opportuni7es
Market Opportuni7es
• With an established product standard (API, SAE), an entrepreneur with a good marke7ng plan, distribu7on network and sufficient start-‐up capital can compete in this business.
Why private label? • Be`er margins by 10-‐15%
• Borderless and limitless territorial coverage.
• Total control of the business. • No repercussions from policy changes arising from changes in ownership and management.
Why private label?
• When you develop your own brand, you have perpetual exclusivity to market your brand.
Crea7ng a compe77ve advantage • Products conform to interna7onal industry standards
• 10-‐15% cheaper than the na7onal brands • Lower overhead • GNLPC has access to base oil supplies that are compe77vely priced.
Quali7es of an ideal lubricant business entrepreneur
• Good marke7ng plan • Has a distribu7on network • Sufficient start up capital (ranging from P2 million to P5 million)
GT Oil, Raimol and Phoenix Lubricants • GT Oil
o Started their private brand of lubes only last year o 100,000 liters/month o Regions 2 and 3
GT Oil, Raimol and Phoenix Lubricants • Raimol Energized Lubricants
o High Street – 100,000 liters/month
o Industrial – 300,000 liters/month o Luzon
• Phoenix Lubricants o 350,000 liters/month
o Visayas and Mindanao
Investment Proposi7on • Amount of Investment: P2 Million • Target Volume: 20,000 liters/month
• Number of customers required: 170 customers or auto supply that will buy 10 cartons or 120 liters/month
• Product: DEO SAE 40 API CD o Cost: P95/liter at current market price of P115-‐120/liter
o Suggested selling price: P109/liter o Gross Margin: P280,000/month o Overhead: 30% of GM
o ROI: 10 months to 1 year
Investment Proposi7on
• This business model can be replicated to the distribu7on of allied products like 7res, ba`eries, and other automo7ve accessories as the network is prac7cally the same.
About us • Green and Natural Lubes Philippines Company (GNLPC) was established by Wilfredo Rances, Jr., formerly the Managing Director of Valvoline Philippines.
• GNLPC is engaged in the importa7on and wholesale trading petroleum-‐based lubricants, base oils and fer7lizers.
• GNLPC also provides step by step assistance in launching their own brand of lubricants.
Moving forward • What you need to do – if interested in this business, you can get in touch with us and we can meet to discuss it in detail.
• What we need to do – o Will help you in the sejng up your OWN line of lubricants with product selec7on and quality standards
o assistance in ini7al product launch o 24/7 consulta7on.
Contact us
• Contact Person: Wilfredo Rances, Jr. • Email: [email protected]
• Telephone Nos.: 02-‐7882025/02-‐2151305 • Mobile Nos.: 0917-‐8432318/0920-‐9326193
• Website: www.gnlpc.com
