ENGINE OIL DISTRIBUTORSHIP
Before we dive in to understand that what is an engine oil distributorship business and how can you become one, let us first understand that what is a distributorship
Let us first understand what is distributorship
As we all know in any business first comes the manufacturer
The manufacturer produces the product and after packaging, it is out for sale
Now, the product, before getting into the hands of the end-user/customer, it first goes through the wholesaler/distributor.
Then through the distributor/wholesaler, the product reaches the retail outlets and then is sold to the end-user.
To understand better, let’s take an example for the process of engine oil business
The manufacturer produces a can of engine oil and is sold to automobile owners through retail shops or repair shops
There are distributors that serve to move the product from the manufacturer to market
There are 2 kinds of distributors
Retail Distributor: These type of distributors sell directly to end users without any one in between.
Example: Adnan buys 100 pieces of engine oil from an engine oil manufacturer, stores it in his shop and directly sells it to the Ali, who is the end user.
Wholesale Distributors: These type of distributors buy the products from manufacturers and then sell their products to resellers
Example: Adnan buys 100 pieces of engine oil from the manufacturer, he stores it in his warehouse, then sells it’s to Ajay who owns a repair shop, and then Ajay resells it to Ali who is the end-user.
Now as the concept of distributorship is understood let us understand the business of engine oil distributorship.
We daily see millions of cars and bikes moving along the streets in India.
With a population of 1.2 Billion, and out of those millions of people owning cars and bikes, it is easily understandable that the demand for engine oil is high
Every vehicle needs a change of engine oil within a span of 4-6 months depending from model to model
Now these vehicle owners need to service their vehicle accordingly
This is where all the auto garages or repair shops make money
Now the person who supplies engine oil to these repair shops is the Distributor
But how do you become an engine oil distributor?
There are many engine oil manufacturing companies offering engine oil distributorship
Each brand has their own terms and conditions
For example, when you sign an agreement with big brand, you will only be allowed to sell their products.
You will be not allowed to sell engine oil of other brands.
But when you deal with small brands then there is a low chance that they will have such a clause in their agreement
Advantages of Big Brands
- Good name in the market
- Easy to sell
- Good Packaging
- Strong Marketing
Disadvantages of Big Brands
- Low Profit Margin
- High Inspection
- Heavy Investment
- High Price
Advantages of Small Brands
- Low Investment
- Low Price
- No Targets
- No Inspection
- High Profit Margin
Disadvantages of Small Brands
- They are not well-known in the Market
- Moderate Packaging
- Not many Advertisement
You may see that each option has its own advantage and disadvantage
If you ask our opinion, we would suggest you go ahead with a rising brand.
Their price will not be that high as they are looking to gain more customers, they will be very competitive with their pricing.
You will not be given any targets and also you will not be obliged to sell only their brand product
There will be no targets
There are very few brands in the market with such terms and conditions
You may research and find one
If you want to become an engine oil distributor of Mapco Lubricants
Here is what you will get
- Low Investment (Can start your business within 2 Lakh Rupees without any down payment)
- Low Price
- No Targets
- Decent Marketing
- Known brand in the market
- No Inspection
- Can sell other brand products as well
To know more you can click here to apply: Engine Oil Distributorship