AMSOIL Price Increase FAQ: Why is AMSOIL raising prices?
Industries around the globe are facing raw-materials shortages, labor shortages and even shortages of drivers to deliver materials. Meanwhile, demand is unrelenting. This combination, along with lingering effects of weather-based disasters and other problems at production facilities, is driving a period of unprecedented volatility in the lubricants industry. We have received multiple rapid and substantial price increases from our suppliers, forcing us to increase
prices of AMSOIL products.
Is a 12% increase warranted?
Yes. We have enacted multiple measures to avoid passing price increases along to AMSOIL Dealers and customers for as long as possible based on projections for increased stability. At this point, costs have risen so substantially we can no longer absorb them. Our competitors have issued multiple price increases, including recent increases of up to 25% by ExxonMobil, Valvoline and Chevron. In fact, according to Jobber’s World, 2022 has already recorded the highest price increases in over 20
years.
Why didn’t AMSOIL raise Dealer commissions along with the price increase?
We have experienced unrelenting cost increases from suppliers over the past 18-24 months. We have not kept pace with those increases and have not fully recovered our costs along the way. As a result, AMSOIL has taken a large pay cut during this period, while AMSOIL Dealers received a significant pay increase. We must reinstate more appropriate margins to maintain the company’s strength moving forward.
Is the company’s strength wavering?
No, the company remains very strong. Making this correction is necessary to ensure that strength remains.
When is this market volatility expected to end?
We do not know. All signs now indicate volatility will remain until at least early 2023.
Why didn’t AMSOIL provide advanced notice of the price increase?
Whenever we announce a price increase, Dealers and accounts increase their order volumes before prices rise. Right now, supplies of raw materials and inventories of finished goods cannot withstand a surge in order volume. If we had announced the price increase in advance, our inventories would be exhausted and we would be unable to continue supplying you with the products you need.
Are all products and package sizes increasing equally?
No. Filters are not increasing. Drums and totes will not increase 12%; the amount they increase will vary.
Is there going to be another price increase soon?
We cannot predict when the next price adjustment will be required. We expect this adjustment will allow us to hold steady for a few months; however, the market has been completely unpredictable and does not allow for confidence in any predictions.
Are you sending Dealers and accounts updated price lists?
Yes. Dealers will receive an updated price list as a special mailing. Accounts will receive a price list in the April edition of Service Line.
