I'm buying an oil company! - Kind of

[MolaKule]

Originally Posted by Hastrup
Hi MolaKule

The company I will be buying into, if we agree on the price, relies on an additive package, that is hopelessly outdated and unpatented. They are relying on old costumers who keep coming back, and are unable to find new costumers.
What I'm buying into then, is pretty much a customer base, current owners knowledge, and a faded brand.

There would have to be developed a completely new additive package for their products under my co-ownership, and a new marketing strategy. And that is where the part about transparency will come into play.
Because why not have a community like this, help put together the "perfect" additive package?


I do not want to discourage any entrepreneur as that basically is how I began, but reality sets in early.

You keep mentioning transparency, but I do not understand what you mean by that and what your expectations of transparency might be. Perhaps you could elaborate further.

Harvard: Transparency

Recommendations:

1) Sort out "pie-in-the-sky" expectations and comments from what is scientifically attainable,

2) Once you have sorted out 1), contact an additive manufacture and give them your specifications and performance targets. If you do not have the expertise, additive companies have the chemistry expertise to make whatever is attainable, but don't expect this part of the enterprise (custom formulations) to be cheap.

 

[Hastrup]

Hi KevD47

Haha, you are absolutely right about the UOA/ppm thing on this forum. That is why I love it.
Though I do see brand-religion playing to big a part in peoples choices, mainly because manufacturers give so little information about their products. And I don't see why they shouldn't inform the costumers about at least the overall content in their products. Because anyone can (if they have the money) have a competitors oil reverse engineered down to ppm, and then copy it, or if it's patented, draw inspiration from that composition. So why keep the costumer in the dark? You guessed it, - uninformed brand-religion is a great way to keep costumers coming back.

My goal for the engine oil as you say, will resonate with a lot of people, but I think when it comes to private consumers, it will only be people like on this forum that will care. But then that is the most rewarding segment in my mind. As you write, most vehicle-owners will just go with what the manufacturer offers.

The biggest interest I think will be from the B2B market. The larger oil manufacturers already have long contracts with the car manufacturers, and if they see my product as a thread, they will try to block me out, copy or buy me out. My plan here is to fly under the radar for a while, going with smaller but still renowned machine and vehicle manufacturers, and over the next five years create an interest, that will lead bigger truck and car manufacturers to me instead, of me chasing them, fighting bigger companies.

Thank you! I might need it.

 

[Hastrup]

Hi Shannow

My answer will be the same as Elon Musks, when Salim Ismail asked him about the Hyperloop concept, and the impossible task of accelerating and then decelerating people to and from 1000km/h, within a short period of time and space, without them being sick or taking damage.
- "Yes, - it's an issue".

(Note that they found a way around the problem within the science of fluid dynamics).

It is not impossible. But the challenge is how to do it within industry and environmental regulations. We will have to develop a new special composition or develop/find a new additive, to reach the goal of up to 15% better economy and 5% power.

But I do thank you for pointing out the challenge.

 

[Hastrup]

Shannow

And thanks again for you second input!
So many manufacturer specifications to keep track of, and as a lubricant manufacturer, you have to pay them for the license to use their official approval. Even if your oils live up to their specifications. Otherwise, your oil will ruin the costumers warranty, on the product they bought from the car/truck manufacturer.

Kind of clever from a business point of view, - but also a bit douchy.

 

[Hastrup]

Hi Oildudeny

It is just a small lubricant manufacturer, owned and run by one person, so the investment will be smaller than most people think, when they hear "oil company". Sounds good though I think!

I agree there is still a lot to learn, which is why I do plan to test and reverse engineer the best and nearest competitors on the market, to get an inside into how they solve the challenges an engine oil faces, also find the weaknesses of their additive packages.

If "the perfect oil"-project fails, my plan is just to make the business focused on lubricants, invest in marketing, create healthy growth (at the moment the company also import detailing equipment as a side thing, doesn't invest in marketing, and hasn't been growing for 10 years...), and then sell it on with a small profit.

 

[Hastrup]

Sloinker

Fair enough.

Thanks.

 

[demarpaint]

Good luck.

 

[mitsuman47]

This sounds like a bigger money pit than a boat renovation.

Not saying it can't be done. But, you've got a ton of expense, time, expense, headache, and expense ahead of you. Unless you're 110% passionate about it, I'd say spend that money enjoying vehicles as a hobby. Unless, of course, you've got a trust fund, and money really is no object.

But, if you're that loaded, I'm available for adoption.

Dad?

 

[Hastrup]

Hi Molakule

Maybe "transparency" is a strong word. What I mean is letting consumers see the content of what is in the product (though not down to ppm levels), so they will be informed. And if they are really interested or have questions, then have an encyclopaedia on the website, to answer questions costumers might have to a code, approval or additive. Kind of like the Penrite "Knowledge center": https://www.penriteoil.com.au/knowledge-centre#/home/197/what-is-the-penrite-knowledge-centre/461

And thanks for the recommendations.

I do like the smell of the pie-in-the-sky, and intend to go for it, as I do think it is possible to reach the goals. The question is price...

Once research and tests have been done into what chemical or additive can help achieve these goals, I/we will require the help of additive companies, as the company for now is too small to blend the additive package in-house.

BUT, - if "the perfect oil"-project fails, my plan is just to make the business focused on lubricants, invest in marketing, create healthy growth (at the moment the company also import detailing equipment as a side thing, doesn't invest in marketing, and hasn't been growing for 10 years...), and then sell it on with a small profit.

Out of interest and desire to learn, what is your experience within this subject?

 

[Hastrup]

Hi Demarpaint

Thanks. I might need some.

 

[Hastrup]

HI Mitsuman47

As the company stands now, it is a money pit.
It is just a small lubricant manufacturer, owned and run by one person, so the investment will be very much smaller than most people think, when they hear "oil company". Sounds good though I think!

With a few adjustments, it can become a healthy small business, which I could then sell off, and earn a coin. But my plan is to use this company as a base, to make something great.

 

[Oildudeny]

Originally Posted by Hastrup
Hi Oildudeny

It is just a small lubricant manufacturer, owned and run by one person, so the investment will be smaller than most people think, when they hear "oil company". Sounds good though I think!

I agree there is still a lot to learn, which is why I do plan to test and reverse engineer the best and nearest competitors on the market, to get an inside into how they solve the challenges an engine oil faces, also find the weaknesses of their additive packages.

If "the perfect oil"-project fails, my plan is just to make the business focused on lubricants, invest in marketing, create healthy growth (at the moment the company also import detailing equipment as a side thing, doesn't invest in marketing, and hasn't been growing for 10 years...), and then sell it on with a small profit.

Sounds like you set out to be the competition to amsoil. There's many mice traps on the market and through time people tried to reinvent the snap trap, but the tried and true snap trap keeps on snapping. What is this company you say you're investing in, any website, pictures, info? What is the product or products currently produced, have you ever blended oil before.? And I don't mean mix a few ounces of your favorite quart

 

[Shannow]

Originally Posted by Hastrup

It is not impossible. But the challenge is how to do it within industry and environmental regulations. We will have to develop a new special composition or develop/find a new additive, to reach the goal of up to 15% better economy and 5% power.


Imagining it's not impossible and saying that we just need to search for an answer, versus doing the engineering and setting a target that IS possible are vastly different concepts.

First is Naïve, the second gives you the envelope that physics allows you to work within.

Here's an older range of Fuel Economy improvements from API testing showing the range of improvements from a standard 15W40 with changes in viscosity.

Your target is five fold the range of the chart...from a not realistic starting point (15W40)

 

[Hastrup]

Hi Oildudeny

Amsoil make good products, but most of the hype isn't justified. They make a very good old and tried snap trap, better than most, but that's it. Nothing new. The same can be said about Castrol, though they are trying to take small safe steps of innovation, with additive packages like the Titanium FST (Titanium oxide) package, to compensate for the growing restrictions on ZDDP.

The company is called Danco Oil. Not known outside of the country. http://www.danco-oil.dk/

I have never blended oil before, - but the owner has and does. I on the other hand have the business and marketing background he lacks, so we could be a good team.

 

[Hastrup]

Hi Shannow

Half of innovating is setting new goals, and asking new questions. If we only look for what we already know, we'll never be able to innovate.

I don't claim to be able to blow the frame of physics. I just think there are areas within the frame that hasn't been explored yet.

The right chemicals and metals are out there to create an additive package with the potential to deliver on my set goals. What is needed is testing in the environment of a combustion engine, to see how they react. I won't go to much into detail yet, but I am in contact with a chemist from Argonne National Laboratory and one from Fraunhofer IMW, about their individual discoveries, and the tribofilm potential of these, within a combustion engine.

It's really exciting.

 

[Hastrup]

But I'm still interested in reading what the users of this site want from an engine oil.