How to Use the Retail Account

Program

T-1 CERTIFICATION SERIESBOOK 8

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AMSOIL – on the shelf and off again

Where can a customer purchase AMSOIL products? Dealers, of course, provide product to customers through personal retail sales. But sometimes this is not the ideal means of acquisition for a customer. Potential customers often search for the products they need in the convenience and immediacy of a conventional retail outlet. To expand the accessibility of products, meet the needs of more consumers and expand the business opportunity for AMSOIL Dealers, AMSOIL offers the Retail Account Program.

A retail establishment is a typical store where one can purchase most everyday items. Hardware stores and automotive parts stores are examples of retail establishments in which consumers find motor oils and other automotive products. AMSOIL Dealers can register these stores as retail accounts. Retail establishments that qualify for this program receive AMSOIL products at wholesale prices so they can stock them and sell them at a profit.

A Dealer might wonder how it could be advantageous to use the Retail Account Program. The Dealer does, in fact, share profits with the retail owner rather than profiting individually. However, there are distinct advantages to using this program, including increased sales volume, assistance from AMSOIL INC. in servicing the account and increased profits.

Servicing Dealers receive a cash commission and commission credits on each purchase the retailer makes. Commission credits earned from purchases made by a Dealer’s retail accounts are added each month to the commission credits Dealers receive from the other AMSOIL programs. See Book 2 in the T-1 Certification Series, How to Administrate Your AMSOIL Business (G1306). Based on the sales commission and total commission credits received each month, AMSOIL sends Dealers monthly commission checks. Cash commission and commission credit values for each AMSOIL product and all AMSOIL programs are listed in the Dealer Profit List (G3501).

The volume potential for retail accounts makes it a profitable program. With several accounts, the combination of sales commissions and commission credits can result in a substantial income. While Dealers determine the amount of time spent on each account, Dealers who call on accounts regularly to take orders, deliver product or provide other services increase the likelihood of earning more sales and retaining accounts long-term.

To expand the accessibility of products and

meet the needs of more

consumers…

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YOUR YOUR PRODUCTS UNIT OF AMOUNT OF CASH COMMISSION YOUR ACCOUNT PURCHASED MEASURE PURCHASE COMMISSION CREDITS

Hardware Store ASLQT -CA 89.25 12.50 19.64 ATMQT -CA 89.25 12.50 19.64 ASEQT -CA 72.75 10.19 16.01 AMEQT -CA 81.00 11.34 17.82Total: 332.25 46.53 73.11

Auto Parts Store ASLQT -CA 89.25 12.50 19.64 ATMQT -CA 89.25 12.50 19.64 AMEQT -CA 81.00 11.34 17.82 ATFQT -CA 101.25 14.18 22.28 EAO11 -CA 147.00 22.05 32.34 APICN -CA 100.58 14.30 22.13Total: 608.33 86.87 133.85

Quick Lube XLMQT -CA 66.75 9.35 14.69 XLFQT -CA 66.75 9.35 14.69 XLTQT -CA 66.75 9.35 14.69 ATFTP -CA 163.75 22.93 36.03 APICN -CA 100.58 14.30 22.13Total: 464.58 65.28 102.23

Small Engine Shop ASEQT -CA 72.75 10.19 16.01 AMHSC -CA 71.90 10.07 15.82Total: 144.65 20.26 31.83

Boat & Motor Shop WCTQT -CA 88.65 12.54 19.50 WCFQT -CA 95.25 13.45 20.96 AMEQT -CA 81.00 11.34 17.82 AGMQT -CA 98.85 13.84 20.76Total: 363.75 51.17 79.04

Total for the Month: $1,911.30 $269.81 419.56

Examples only. Based on April 1, 2014 figures. Pricing and commissions subject to change.

Dealers earn a cash

commission and commission credits on retail account sales.

Qualifying AccountsAlthough there are many different types of businesses that would qualify as retail stores, Dealers must be somewhat selective in choosing which businesses are worth pursuing and working with as retail accounts. For example, some AMSOIL regulations place restrictions on how accounts should be handled when the Dealer works for the business or has a vested interest in it. For detailed rules and regulations regarding the Retail Account Program, see the AMSOIL Commercial & Retail Marketing Procedures (G1097). The most basic qualifying factors are:

1. The business must be a retail seller, either of products exclusively or of products related to a service.

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2. The business must be in a business location, separate from a residence, with regular hours.

3. The business must primarily offer products or services other than AMSOIL products.

4. If the business is part of a chain of 12 or more stores, it must register individually and have the authority to order and receive products.

5. The business must not already be the protected account of another Dealer [see Initial Contact Guidelines for Registering Dealers, Preferred Customers and Accounts (G2194)].

Choosing A MarketDeciding which businesses to register as retail accounts involves more than just AMSOIL regulations. Dealers have to assess many different factors to make an informed decision about whether or not to approach and service a retail business. Dealers should also set their own standards based on geographical area or personal interest.

Prospect ListThe best policy in working the Retail Account Program is not to flood every outlet possible with products, but to narrow the focus to an area of specific experience or expertise. For example, Dealers with connections to small auto shops and an understanding of how they operate would initially want to focus on this market. After Dealers grow more comfortable with the Retail Account Program, they can expand into other areas and markets.

Developing a list of potential retail accounts involves more than walking down Main Street and stopping in at every store. Research the market before making calls. The gathered information will indicate what the market is like and provide direction in strategy. Dealers can develop a good prospect list by using resources that are available in almost every community.

The best resource is a referral. Established contacts in a certain field (auto mechanics, retail hardware, etc.) mean a lot of potential for networking. Dealers can get the names of businesses in the area, the type of business they do and even the names of the managers and people in charge of purchasing for the businesses. A referral is an invaluable resource in sales, and it’s one that continues to produce results. Every good account can lead to more referrals to other businesses in the area.

The Internet is another beneficial resource. Search engines, interactive maps, business look-ups and more can help you determine the types of businesses in your area.

Small businesses provide a great market for the AMSOIL Retail

Account Program. Small businesses are often open to new products

and ideas and have a lot of potential

for growth. AMSOIL servicing Dealers have the

potential to play a large role in their

growth and to grow with them.

Don’t underestimate the little guy.

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A variety of publications may also be helpful. Scanning local newspaper advertisements is a good way to identify area businesses that may be a good fit for your prospect list. Listings from trade associations and nearby chambers of commerce can also be useful.

Just as it is important to research prospective clients before trying to sell, it is also important to research the industry to become knowledgeable of the terminology and mechanics of the business. Reading trade publications related to the industry will help you get comfortable with the terminology. Extensive research can provide direction and focus in formulating a retail sales plan.

After developing a list of potential sales calls, Dealers should narrow it down to businesses that seem most appropriate for them. Some businesses might be too big, too small or too focused on other types of retail sales. You know where you want your business to go, so you should be selective about which businesses receive your effort and attention.

Generating ProfitThe focus of a retail business is to generate profits. It’s the servicing Dealer’s job to convey to potential accounts how the programs, the products and the Dealer will help customers realize profits.

ProgramsPrograms provided by AMSOIL are designed to increase retail sales and help increase business. For example, the Retail Co-op Program provides monetary assistance to accounts for online, newspaper, magazine, Yellow Pages, television and radio advertising (G1071). The Co-op Program can also be used to buy AMSOIL point-of-purchase items [see the AMSOIL Clothing and Promotional Items Catalog (G1650) for available items].

AMSOIL also offers a 30-day credit line for qualifying accounts, allowing them to get started quickly and stay well-stocked with AMSOIL products.

Additionally, the Online Locator at www.amsoil.com is the easiest and fastest way for customers to find retail accounts that carry AMSOIL products. To be included on the Locator, an account must have $500 in qualifying purchases in the past six months and a completed profile page. A profile page includes location, hours of operation and driving directions, as well as the AMSOIL products and services the account offers. This information improves customer service and helps drive traffic to your auto service centers and retail locations, increasing sales.

AMSOIL products provide excellent gross profits for retail accounts. Demonstrate how much accounts earn by selling at

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the suggested retail prices. Because AMSOIL products are sold to all retail accounts at the same price, the largest discount retailers buy at the same prices as the smallest specialty shops and pricing competition is limited.

Products and CompanyWhen explaining how retailers can profit from AMSOIL sales, Dealers should point out that AMSOIL has a 40-year history of successful business, is the First in Synthetics® and has one of the largest lines of synthetics in the world—large enough to provide virtually any lubricant the store’s customers will need. High demand for AMSOIL products and continual growth of market share mean increased profits for the retailer and the Dealer.

AMSOIL also provides technical backup, not only through servicing Dealers, but also through the company’s Technical Services Department: (715) 399-TECH or tech@amsoil.com.

The DealerServicing Dealers aim to get products on retailers’ shelves. They also are responsible for helping to get products off the shelves. Selling the store on the product is the first step; selling the product to the customers is the second, equally important, step. Retailers may not have the time or knowledge to market AMSOIL products adequately, so it could be up to the servicing Dealer. Dealers can help retailers by regularly consulting with them on point-of-sale matters and checking up on how things are going. Dealers should know which products are moving and which aren't, and offer ideas to make adjustments for those that aren't. Rotating product, setting up merchandising displays or providing literature for distribution may result in increased sales.

Another valuable service Dealers can provide for retailers is training. Although the staff might be knowledgeable about automotive items, they may not know much about synthetic lubrication and the superiority of AMSOIL lubricants. By training accounts’ staff, Dealers help themselves and the business. Training gives staff members an education that helps them make informed suggestions to their customers and increases the likelihood that they will recommend AMSOIL products.

Encouraging the staff and managers to use AMSOIL products can also help bolster sales. There’s no better advertising than personal testimonials from the staff to sell AMSOIL products; their word will go a long way with their customers. Excitement about AMSOIL products will increase sales and everybody will profit from the relationship.

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Making the SaleAn extremely important skill for a good salesperson to have is the ability to create the most favorable conditions for approaching a potential account and making the sale. Timing, preparation, meeting and following up work together to create an advantage for Dealers committed to recruiting retail accounts.

TimingThe first step is to approach at an appropriate time. Avoid approaching potential retail customers during busy times at their store, when they are unloading a truck, or at any other time that would be inconvenient for them. The sale is lost when bad timing puts the customer in a negative frame of mind.

PreparationPreparation is important when approaching a potential customer in person. Dealers should always carry business cards and AMSOIL product literature to give potential customers. Familiarity with AMSOIL products and their applications illustrates a Dealer’s dedication to the products and AMSOIL and helps strengthen customer confidence.

MeetingIt’s best to schedule an in-person meeting within a few days of the initial call. When setting up an appointment by telephone, Dealers should quickly state the purpose of the call and schedule a meeting. Dealers should always confirm the appointment the day before the meeting.

Following UpAfter meeting with potential customers, Dealers are wise to follow up with an email and business card. These are simple ways to create a lasting impression on potential customers and increase the likelihood of gaining their business.

Fact-Finding in Retail Accounts

In order to demonstrate the ability to meet customers’ needs, Dealers must know those needs. Ask about the store or shop. Who are their typical customers? What kind of service do they need? Dealers need this kind of information to match their products and services with customers’ needs. Do as much research as possible prior to the first meeting.

As retailers' needs are discovered, Servicing Dealers can determine how well the company suits them. What kind of shelf space is available? Are they open to displays? Will the company allow employee training of synthetic lubrication and AMSOIL? Will employees try the products themselves?

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Administration of an Account

As in any business, independent AMSOIL Dealers must observe certain AMSOIL policies and functional procedures when registering new retail accounts. Following the correct procedures for enrolling new retail accounts will expedite the registration process. Two methods of registration for retail accounts are available: Traditional and online.

If the traditional method is preferred, all the forms needed to register and administrate a retail account are included in the Retail Account Kit (G1001). In addition to some general informational items for Dealers to present to potential clients, the kit contains several forms. Some forms (Account Applications; Retail Account Profile Sheet) are necessary for establishing the retail account, while others (Account Order Form, for accounts that wish to order product immediately; Sales & Use Certificate, for accounts that claim tax exemption) are necessary only for some accounts.

Dealers who prefer less paperwork can register retail accounts using the EZ Online Application found in the Dealer Zone at myaccount.amsoil.com (My Business>Registrations>Retail & Commercial Accounts).

Although most of the forms are self-explanatory, some items warrant further explanation.

Account ApplicationTo use the EZ Online Application process, log in to the Dealer Zone. Under the My Business flyout menu, click the “Registrations” link. Then click the “Retail & Commercial Accounts” link and follow the prompts. When using traditional paper forms to register accounts, complete the form at left (G1388) and send to AMSOIL INC. Forms that are missing information may delay account approval.

Note: Home-based businesses do not qualify for a retail account.

Credit ApplicationThe Credit Application Form (G1391) is necessary for accounts that wish to purchase product using the AMSOIL 30-day credit line. The application form must be completed for review and approval by AMSOIL. If accounts wish to pay directly or by COD, they do not need to complete the Credit Application Form. However, if AMSOIL denies a request for credit, the account will be required to pay directly or by COD payment.

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The financial statement section is only for accounts that have no other credit reference listing (e.g., a Dun & Bradstreet number). Most businesses, however, have such a reference and do not need to complete the financial statement section. The Dun & Bradstreet Database is a credit approval database that helps AMSOIL review the company’s credit history for approval. The account will know if they have a D & B number.

Note: Always specify the amount of credit requested by estimating monthly use. Providing fax numbers for references speeds up credit approval.

If the company has a pre-printed list of credit references, skip the trade reference portion of the application. However, the company information must be completed and the application signed.

Credit PolicyUpon being established as a qualified account and prior to a credit limit being extended, the account will be on a prepaid cash basis and can order product at any time. Cash in advance, COD or a valid credit card will be accepted for any orders the account places in advance of AMSOIL establishing and communicating a credit limit. This policy remains in effect until the account is established , credit history is analyzed and a credit limit is determined.

Only commercial and retail accounts will be considered for the extension of a credit limit. No Dealer accounts, whether old or new, will be extended credit without prior written approval.

All retail accounts that request a credit limit must complete and submit a Retail Account Application (G1388) and a Credit Application (G1391). Dealers should have the account fill out the applications and send them to AMSOIL. Applications should be sent together to simplify the approval process.

AMSOIL must receive and approve a credit limit request before acceptance of an initial order on credit. AMSOIL will notify retail accounts of the amount of the credit limit. There are no exceptions to this requirement.

Collections ProceduresEach month, AMSOIL sends out Statement of Account invoices to all accounts with an outstanding balance.

When an account carries a balance beyond 30 days to 90 days past due, AMSOIL attempts to contact the account by mail and telephone. This is as a courtesy to remind accounts of their outstanding balance and determine if payment has been sent or when it will be sent. The account is then placed on a credit hold until the past-due balance is paid. Accounts carrying an unpaid balance will not be able to purchase more product until the outstanding amount is paid.

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From 90 to 120 days, collection personnel attempt to reach customers by telephone to make payment arrangements. Failure to follow through on commitments to pay results in accounts being turned over to a collection agency (commissions and bonuses are not paid on accounts sent to a collection agency).

How to Prevent Collections Action Against Accounts

• Review monthly reports of commercial and retail accounts with open orders. Reports give Dealers information on their accounts with outstanding balances.

• Maintain personal contact with customers, particularly those who carry unpaid balances. Dealers do not earn commissions or bonuses on unpaid invoices.

• Contact AMSOIL collection personnel with any information obtained regarding customers with past-due invoices. When possible, approach customers in a friendly manner and try to collect payment from them in person.

• Resolve problems between customers and AMSOIL INC. as quickly as possible.

• Inform customers that an account that is sent to collections can never regain its line of credit with AMSOIL. The account may continue to buy product at wholesale, but only with pre-payment by credit card, check or COD.

Retail Account Profile SheetThe Retail Account Profile Sheet is intended to give Dealers and AMSOIL more detailed knowledge about the account. It gives Dealers the chance to interview the customer and gather information useful in servicing the account.

Important: The profile sheet is to be completed by the Dealer. Make a copy of this form before sending it to AMSOIL.

Account Order FormThe Account Order Form is only necessary for accounts that want to order product immediately. Because Dealers are familiar with the products and the company, it is good policy to assist the customer in filling out the form. Helping customers out and making suggestions along the way could lead to a larger order than originally intended. There are several ways for accounts to order product:

• Access the Online Store through the Retail Account Zone (myaccount.amsoil.com).

• Call the AMSOIL Ordering Line: (800) 777-7094.

• Complete the form and mail it to AMSOIL INC.

• Complete the form and fax it to AMSOIL INC.

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ShippingThe process of shipping and handling of product to retail accounts is simple. Given the appropriate information, AMSOIL can take care of the entire process from the point of purchase. Details regarding shipping and handling are spelled out on the Retail Account Ordering Information Sheet (G2603). However, some points specific to retail accounts warrant explanation:

1. Customers can choose to pick up product themselves from the nearest distribution center. All they need is the account number when they pick it up. There is no shipping and handling charge if a customer picks up the order.

2. Dealers may order products shipped freight collect OR pre-pay the freight using the schedule detailed in Book 2 of the T-1 Certification Series: How To Administrate Your AMSOIL Business (G1306).

3. For retail accounts, there are freight discounts available based on the volume of the purchase: – $5,500.00 to $10,999.99—AMSOIL pays half the freight cost; – $11,000.00 or more—AMSOIL pays all freight.

4. If accounts have specific instructions regarding delivery, they should be given to the ordering operator.

5. The point of delivery must be a street address. Carriers will not deliver to P.O. boxes.

With proper administration and an understanding of the procedures involved in servicing a retail account, it is possible to profit greatly from the AMSOIL Retail Account Program. AMSOIL handles ordering, shipping and processing. All that’s left for Dealers is to sell to and service the customers. However, any questions can be answered by the AMSOIL Account Services Department at (715) 392-7101.

For further knowledge of the products and programs useful to an AMSOIL retail account’s servicing Dealer, AMSOIL offers a wide variety of product and program literature. To determine which literature items would be useful, order the AMSOIL Literature and Business Tools Cata log (G1045).

The Commercial ProgramThe next step taken by most AMSOIL Dealers who have mastered the Retail Account Program is the AMSOIL Commercial Program. Book 9 in the T-1 Certification Series, How to Use the Commercial Program (G1303), provides detailed instructions on how to register and service commercial accounts.

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AMSOIL INC. retains the right to make modifications and/or revisions to the programs, procedures and information contained herein.

AMSOIL INC., 925 Tower Ave., Superior, WI 54880-1527 (715) 392-7101 Printed in the USA. © Copyright 2014