How do you find the best lubricant supplier for your business

Lubricant Supplier
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Significance of Lubricant

Lubricants are needed by almost every business, especially those which use machinery. Almost every other machine requires lubrication to improve efficiency and reduce wear & tear. From your car’s engine to heavy-duty machinery, lubricants are used extensively and therefore can be considered an essential requirement.

They reduce the heat produced by the moving parts of machinery by reducing friction. High-quality lubricants are essential for proper maintenance and the long life of machinery.

Importance of a good supplier

If you run a factory and your lubricant consumption is high or you are planning to sell lubricants then you may require one or more permanent suppliers. This can ensure a regular supply of lubricants for your business and also allow you to benefit from discounts on wholesale purchases.

Selecting a Lubricant Supplier can be a challenging task because the lubricant business is highly lucrative. It has a huge distribution network with hundreds of suppliers. What is even more challenging is that there are countless companies manufacturing lubricants, from cheap to premium quality.

 

Some necessary considerations for selecting the right lubricant supplier are mentioned below :

Consumption & Supply

As a business selling lubricants, your most important consideration should be your requirement. You should be able to estimate how many lubricants you will be selling in the market. You can start by considering how many buyers and prospective buyers need to cater.

What are their monthly or quarterly requirements? The answers depend on whether you are a B2B supplier or a B2C supplier. Estimation for the former will be relatively convenient, while for the latter you will have to consider the demographics of the market you are selling to.

You also need to identify the type or types of lubricants you would be selling. If you are selling only a specific lubricant such as hydraulic oil, you only need to look at the prospective consumption of hydraulic oil and the available hydraulic oil suppliers. Estimating consumption and the required supply will be more complex if you have a broad portfolio of lubricants.

Quality 

You will come across countless domestic and international brands of lubricants. They are available in a broad range of quality, functionality, and prices. Low-quality lubricants are in abundance and you might fall into the temptation of low prices.

However, this adventure will not last for long and you will end up losing face as well as your investment. It is highly recommended to do extensive market research before you decide to sell a particular brand.

Aligning yourself with an established lubricant supplier might be complicated but you will reap the benefits in the long run. Most of the businesses or consumers you sell to, would not be comfortable with new brands but rather famous and tested ones.

Lubricant Supplier
Lubricant Supplier

Product Portfolio

Your decision to link yourself with a supplier also demands that you identify which lubricants you would be selling. Many suppliers provide more than one type of lubricant which is commonly used by both consumers and businesses.

If you limit yourself to one particular type of oil, for instance, hydraulic oil, then you will be limiting yourself to a specific business and your choice of Hydraulic Oil Suppliers will make a significant impact on your profitability.

Although selling a specific lubricant may not be a wrong decision but having more than one product and catering to more than one market segment is highly recommended for a profitable business.

Cost 

Regardless of any business, the primary purpose is to make a profit. The lubricant market is huge, both domestically and internationally. Despite that, it still has ample room for new entrants and for existing ones looking forward to expanding.

High-profit margins are a characteristic of this business sector. However, you will have to find the best match between cost and quality. Lubricants with average pricing do not necessarily point towards low quality.

The manufacturers may want to break into the market and therefore have kept low pricing. On the other hand, you might find most of the established names expensive, reducing your profit margin. It is extremely important to do a perfect cost analysis before you step into this business or before you decide to expand.

Final Word

The lubricant business is without any doubt a profitable one despite countless market players. It is linked to numerous other businesses and therefore the sector enjoys high-profit margins. However, many factors need to be taken into account for turning it into a sustainable one. Choosing the right supplier ranks at the top among these factors.

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