With cost cutting top of many a distributor’s business agenda, Fuel Oil News asks are there any opportunities available to increase profit?
Speaking to Euro Oils directors, Lee Burgess and Ian Appleton, the answer is an emphatic “yes”. Just four years ago, the pair acquired this Midlands-based lubricants blender and manufacturer. Having grown the business by 400%, Euro Oils customers are sharing in the company’s success.
Our lubricant, your brand
Private label branding in the UK has grown substantially as major oil and lubricant brands have retrenched.
Euro Oils is different from other lubricants manufacturers, in that it produces lubricants solely for its customers. Working with Euro Oils allows your company to build its own brand equity with a quality UK manufactured product bearing your name. Not having its own brand, Euro Oils will never be in competition with yours. Euro Oils acts as your silent partner – never divulging its suppliers nor its customers.
“We launched our own brand of engine oil after becoming disheartened with the service and margins offered by our existing suppliers. As a small wholesaler/distributor we weren’t taken seriously by many of the other companies that we approached. Euro Oils came across as far more on the ball, and I was confident that they could deliver what I wanted.”
Professional and profitable
Benchmarking itself against the global leaders in lubricants, recent investment has vastly improved the image, quality and presentation of packaging. “When our customer’s brand packs a punch on the shelf, it’s definitely in everyone’s interests,” said Ian. “Professional packaging that really stands out certainly helps increase sales.”
Considerable investment in the company’s capacity, capability and people has seen new laboratory testing equipment, a state of the art label printer, new filling lines plus more graduate recruitment and staff training.
“For the first time in over 7 years of wholesaling other brand engine oils we can finally see profits in small pack engine oil. Previously our oil brands had acted as a door opener and we would be reliant on pushing wiper blades, car mats and seat covers to try and earn some profit. Sales are going very strong; the independent motor factor shops and a couple of larger distributors have been very receptive to our branding and packaging.”
“We’ve added more to our offering,” said Lee. “Having reduced the complexity around the sale of lubricants, there are now less barriers to entry for smaller players. Synthetic oils have risen in prominence and there’s been a move away from barrels to the production of smaller pack sizes and multiple packs. Large or small – all customers can build a brand with a strong image in the automotive and agricultural markets, and make a good profit.”
With threats of negative interest, rather than leave £30,000 in the bank doing nothing, one Euro Oil customer spends the money on lubricants; in six weeks he can make a £10,000 profit.
With the minimum order being just a pallet, entering the own brand lubricants market may be easier than you think. Taking a flexible approach, Euro Oils encourages customers to regard its blending plant as their own. “Simply tell us what you want,” said Lee.
“A partnership with Euro Oils was very much part of our company strategy. We felt that developing our own brand products for our retail network would give us a competitive edge. On a more personal level I have known Lee for many years and knew that I could rely on him to deliver a package that would effectively suit our business needs.”
Having upgraded its facilities for the benefit of customers, Euro Oils has upgraded itself with a brand new logo designed to reflect the company’s growing customer base in the Middle East. Check out the new logo and brand new website at www.euro-oils.com.
Could this silent non-competing partner give your business a competitive edge? To find out more, please call Lee on 01527 502252.