How do you become an oil distributor?
How Do You Become An Oil Distributor?
- Thread starter Red91
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You have to contact them:
http://www.castrol.com/en/b2b/home/contact-and-support/our-distributors/become-a-distributor.html
http://www.castrol.com/en/b2b/home/contact-and-support/our-distributors/become-a-distributor.html
How? Bad luck??
Jack, I don't follow...
It's a tough business. Local distributors are having a hard time with new regulations, direct marketing by the majors and foreign competition.
Most of the time, at least up here, if you're distributing for the oil company, you're also distributing fuel (i.e. commercial and agro), and possibly even running a cardlock facility.
I wouldn't want to distribute fuel. I figured it's tough, and so far I've not encountered anyone locally who's in the business. I don't suppose it's realistic to have a small, one to three person operation with a decent sized storage facility/office, a forklift, and a one ton van, is it?
One could always check with Shell or the other majors and see what requirements they're looking for. I do know that for Mobil/Esso up here, one distributor focuses more upon the oil, and the other more upon fuel. I believe the oil guy does some fuel, but the fuel guy does no oil, if I have it straight. Petro-Canada on the other hand is one distributor doing the whole bit. Shell does, in Canada, have separate Shell (i.e. Formula Shell/Rotella) and full line (Pennzoil-Quaker State/Formula Shell/Rotella) distributors. I don't know how picky they are about fuel. I, too, would agree with your reluctance to distribute fuel. That turns what could be a relatively small operation into a much larger one, with significantly higher overhead. A climate controlled large shed/small warehouse to store oil and a delivery vehicle is a lot different than a cardlock facility, pumps, tanks, and fuel trucks, plus the lubricant distributorship.
It's worth a check, particularly if there are a few bulk fuel distributors there but not much in the way of lube distributors. It wouldn't be out of the realm of possibility, at all, for there to be a relatively small operation with a relatively small warehouse dealing with walk in buys and supplying a few shops. There was something like that here, multi-brand mind you, along with a few filters and other assorted automotive fluids, until the land got bought up. I was asked if I had interest in taking over the operation, but my properties aren't really suitable for such a thing, unfortunately, and I don't have the time. Of course, that bugs me, because what BITOGer wouldn't want his own giant oil stash?
It's worth a check, particularly if there are a few bulk fuel distributors there but not much in the way of lube distributors. It wouldn't be out of the realm of possibility, at all, for there to be a relatively small operation with a relatively small warehouse dealing with walk in buys and supplying a few shops. There was something like that here, multi-brand mind you, along with a few filters and other assorted automotive fluids, until the land got bought up. I was asked if I had interest in taking over the operation, but my properties aren't really suitable for such a thing, unfortunately, and I don't have the time. Of course, that bugs me, because what BITOGer wouldn't want his own giant oil stash?
Most of the distributors in my area, that I know of, are fuel. Shell has the most presence, and has for decades, but there's also a Wavaho distributor the next county over, and a Citgo in another county. I've really pondered Citgo lately, because there isn't one single station in the county I live in, but they are as present as Chevrons, Texacos, Shells and other major brands in the surrounding counties. There's also a local brand, Jet-Pep, that has as much presence as Shell does. Supplying local shops and mom 'n' pop stores would be my interest. Still, it seems a major jump from mechanic to motor oil distributor. I've never had as much money at one time as it probably takes to just start the business, much less get it through it's first year.
I would think that the oil companies would be able to set up credit. I can't see them wanting every pallet paid for immediately at drop off. Of course, that would be predicated on you having a facility and a business, so they actually could extend credit. It would still be a lot less of a capital expenditure than trying to run a fuel distributorship.
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