This web page is intended for installers of lubrication products. This includes not only motor oil for oil changes, but also transmission and gear oils. More than likely you are familiar with Amsoil and the high quality reputation we’ve earned over the last 45 years. However, this page is not intended to sell you Amsoil products. The main purpose of this article is to demonstrate how money is made as an Amsoil Dealer. As a lube installer you are already servicing clients so this page will simply show how much you can make if you switched to Amsoil as your main source of lubricants.
How can Amsoil increase your oil change profits? Well the short answer is; you will earn income from two separate sources. You are already familiar with the most common method, which is you purchase your oil from a local supplier, mark it up 20-25% take your profits and move on. This same method will also take place once you become an Amsoil Dealer. Your profits will generally be about the same or slightly higher. Later I will layout the potential profits with Amsoil and you can compare against your current product line.
Your second source of income will come from Amsoil’s commission based sales plan. If you’re a lube installer most Amsoil Dealer’s will set you up with what we call a Retail-on-the-Shelf account. There is nothing wrong with doing it this way, however it limits you to one source of earnings. Those earnings come from you buying Amsoil at wholesale then selling them at retail prices and keeping the difference. Selling Amsoil this way is perfectly fine, however you won’t be able to capitalize on Amsoil’s commission plan as Amsoil Dealers do.
Essentially you will be buying all your lubricants through your own Amsoil Dealership, which then qualifies you to earn commissions. The commission range is from 2-23% and are paid directly to you through automatic deposit (mandatory) on the 15th of every month based on your previous month’s volume. The main goal once you become an Amsoil Dealer is to estimate the approximate volume of all your lubricants. The goal is to reach a volume of 3,000 commission credits, which will put you at the top commission rate of 23%. This will be further explained after we set up a time to meet.
What does it take to become an Amsoil Dealer? There is a cost of $49.95 for the initial registration (which includes 5 free product samples) then a $40.00 fee per year to maintain your Amsoil Dealership. This registration fee goes directly to Amsoil Inc. for administrative cost. As an Amsoil Dealer you are not required to purchase or stock any products. You will not be required to package or ship any products, Amsoil’s distribution centers take care of all shipping procedures at no cost to you. You will not be billing or collecting invoices, Amsoil’s administrative staff handles all these details.
I will give one example of how much can be made by doing a certain number of oil changes. To keep things simple I will use Amsoil’s most popular 5W-20 XL as this is the most predominantly used oil in lube shops. I will also show the maximum commission paid by Amsoil in this example. Your commissions will vary until you reach the 23% level. The quantity of oil used for this example is based off each car holding 5 quarts. I will also be pricing out cases of quarts (12/case). Amsoil does have 30 and 55-gallon drums, which would actually increase your profits. This is only an example and you are free to charge your customers whatever you wish for an oil change.
61 cases of oil was needed to complete this example.
This amounts to 146 oil changes or 36/week or 6/day based on a 6-day work week
Number of cases needed to get to 3,000 commission credits and reach the 23% level: 61
Cost of 61 cases @$71.70/case: $4373.70 ($5.98/qt.)
Approximate cost of 146 filters @ $6.00 each: $876.00
Total cost of goods (COG): $5249.00
Suggested Retail price of an Amsoil Synthetic oil change: $63.00
$8.20/qt. x 5= $41.00
Total for 146 oil changes: $9,198.00
Profit: $3,948.30 ($9,198.00-$5249.00 COG)
Commissions paid by Amsoil on your purchase of 61 cases: $690.00
Total profit from sales plus commissions: $4638.30 ($3948.30 + $690.00)
This example shows the maximum potential you can earn when you reach the highest commission level that Amsoil pays. You do not have to purchase 61 cases of 5W-20 motor oil. All that matters is getting to 3,000 cc’s (commission credits). In other words you can also order transmission oil, gear oil, grease, fuel additives or even diesel oil. As long as you are hitting $3,000 cc’s during a calendar month. Also, there are no requirements you must get to 3,000 cc’s with just one order. The commission credits you earn are accumulative over a calendar month.
There are several key benefits to being an Amsoil Dealer. The ability to earn commissions from registering Commercial and Retail accounts is quite possibly the biggest benefit of all. The potential to earn unlimited commissions is worth your time to completely understand how the Amsoil Dealership works. The best way to accomplish this is to schedule an appointment with me. I have financial examples and other documents to illustrate exactly how I earn commissions.
The best way to reach me is through email. Just click Amsoil Dealer and send me an email. If you prefer to call so I can answer any questions you may call 800-797-4550.