start your own private label lubricant distribution business by wilfredo rances
DESCRIPTION
This is the webinar presentation material of Wilfredo Rances of Green and Natural Lube Philippines Company who deals with entrepreneurs wanting to get into this business. The next webinar session will be on June 14. Sign-up at http://www.gnlpc.com/webinar.htmlTRANSCRIPT
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