How to Use the Retail Account Program

How to Use the
Retail Account
Program
T-1 CERTIFICATION SERIES
BOOK 8
AMSOIL – on the
shelf and off again
Where can a customer purchase AMSOIL products? Dealers, of
course, provide product to customers through personal retail
sales. But sometimes this is not the ideal means of acquisition for
a customer. Potential customers often search for the products
they need in the convenience and immediacy of a conventional
retail outlet. To expand the accessibility of products, meet the
needs of more consumers and expand the business opportunity
for AMSOIL Dealers, AMSOIL offers the Retail Account Program.
A retail establishment is a typical store where one can purchase
most everyday items. Hardware stores and automotive parts
stores are examples of retail establishments in which consumers
find motor oils and other automotive products. AMSOIL Dealers
can register these stores as retail accounts. Retail establishments
that qualify for this program receive AMSOIL products at
wholesale prices so they can stock them and sell them at a profit.
To expand the
accessibility of
products and
meet the needs
of more
consumers…
A Dealer might wonder how it could be advantageous to use the
Retail Account Program. The Dealer does, in fact, share profits
with the retail owner rather than profiting individually. However,
there are distinct advantages to using this program, including
increased sales volume, assistance from AMSOIL INC. in servicing
the account and increased profits.
Servicing Dealers receive a cash commission and commission
credits on each purchase the retailer makes. Commission credits
earned from purchases made by a Dealer’s retail accounts are
added each month to the commission credits Dealers receive
from the other AMSOIL programs. See Book 2 in the T-1
Certification Series, How to Administrate Your AMSOIL Business
(G1306). Based on the sales commission and total commission
credits received each month, AMSOIL sends Dealers monthly
commission checks. Cash commission and commission credit
values for each AMSOIL product and all AMSOIL programs are
listed in the Dealer Profit List (G3501).
The volume potential for retail accounts makes it a profitable
program.With several accounts, the combination of sales
commissions and commission credits can result in a substantial
income.While Dealers determine the amount of time spent on
each account, Dealers who call on accounts regularly to take
orders, deliver product or provide other services increase the
likelihood of earning more sales and retaining accounts longterm.
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YOURYOUR
PRODUCTS
UNIT OF
AMOUNT OF
CASH
COMMISSION
YOUR ACCOUNT
PURCHASED
MEASURE
PURCHASE
COMMISSION
CREDITS
Hardware Store
ASLQT-CA 89.2512.5019.64
ATMQT
-CA 89.2512.5019.64
ASEQT-CA 72.7510.1916.01
AMEQT
-CA 81.0011.3417.82
Total: 332.2546.5373.11
Auto Parts Store
ASLQT-CA 89.2512.5019.64
ATMQT
-CA 89.2512.5019.64
AMEQT
-CA 81.0011.3417.82
ATFQT-CA101.2514.1822.28
EAO11-CA147.0022.0532.34
APICN-CA100.5814.3022.13
Total:
608.33 86.87133.85
Quick Lube
XLMQT-CA 66.75 9.35 14.69
XLFQT-CA 66.75 9.35 14.69
XLTQT-CA 66.75 9.35 14.69
ATFTP-CA163.7522.9336.03
APICN-CA100.5814.3022.13
Total:
464.58 65.28102.23
Small Engine Shop
ASEQT-CA 72.7510.1916.01
AMHSC
-CA 71.9010.0715.82
Total: 144.6520.2631.83
Boat & Motor Shop
WCTQT
-CA 88.6512.5419.50
WCFQT
-CA 95.2513.4520.96
AMEQT
-CA 81.0011.3417.82
AGMQT
-CA 98.8513.8420.76
Total: 363.7551.1779.04
Total for the Month:
$1,911.30
$269.81
419.56
Examples only. Based on April 1, 2014 figures. Pricing and commissions subject to change.
Qualifying Accounts
Although there are many different types of businesses that would
qualify as retail stores, Dealers must be somewhat selective in
choosing which businesses are worth pursuing and working
with as retail accounts. For example, some AMSOIL regulations
place restrictions on how accounts should be handled when the
Dealer works for the business or has a vested interest in it. For
detailed rules and regulations regarding the Retail Account
Program, see the AMSOIL Commercial & Retail Marketing
Procedures (G1097).The most basic qualifying factors are:
1.The business must be a retail seller, either of products
exclusively or of products related to a service.
Dealers earn
a cash
commission
and commission
credits on retail
account sales.
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2.The business must be in a business location, separate from a
residence, with regular hours.
3.The business must primarily offer products or services
other than AMSOIL products.
4.If the business is part of a chain of 12 or more stores, it must
register individually and have the authority to order and
receive products.
5.The business must not already be the protected account of
another Dealer [see Initial Contact Guidelines for
Registering Dealers, Preferred Customers and Accounts
(G2194)].
Choosing A Market
Deciding which businesses to register as retail accounts involves
more than just AMSOIL regulations. Dealers have to assess many
different factors to make an informed decision about whether or
not to approach and service a retail business. Dealers should also
set their own standards based on geographical area or personal
interest.
Small businesses
provide a great
market for the Prospect List
AMSOIL Retail
The best policy in working the Retail Account Program is not
to flood every outlet possible with products, but to narrow the
Account Program.
focus to an area of specific experience or expertise. For example,
Small businesses
Dealers with connections to small auto shops and an
understanding of how they operate would initially want to focus
are often open
on this market. After Dealers grow more comfortable with the
to new products
Retail Account Program, they can expand into other areas and
markets.
and ideas and have
Developing a list of potential retail accounts involves more than
a lot of potential
walking down Main Street and stopping in at every store.
for growth.
Research the market before making calls. The gathered
information will indicate what the market is like and provide
AMSOIL servicing
direction in strategy. Dealers can develop a good prospect list by
Dealers have the
using resources that are available in almost every community.
potential to play a
The best resource is a referral. Established contacts in a certain
field (auto mechanics, retail hardware, etc.) mean a lot of
large role in their
potential for networking. Dealers can get the names of
growth and to
businesses in the area, the type of business they do and even the
names of the managers and people in charge of purchasing for
grow with them.
the businesses. A referral is an invaluable resource in sales, and
Don’t underestimate
it’s one that continues to produce results. Every good account
can lead to more referrals to other businesses in the area.
the little guy.
The Internet is another beneficial resource. Search engines,
interactive maps, business look-ups and more can help you
determine the types of businesses in your area.
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A variety of publications may also be helpful. Scanning local
newspaper advertisements is a good way to identify area
businesses that may be a good fit for your prospect list. Listings
from trade associations and nearby chambers of commerce can
also be useful.
Just as it is important to research prospective clients before
trying to sell, it is also important to research the industry to
become knowledgeable of the terminology and mechanics of
the business. Reading trade publications related to the industry
will help you get comfortable with the terminology. Extensive
research can provide direction and focus in formulating a retail
sales plan.
After developing a list of potential sales calls, Dealers should
narrow it down to businesses that seem most appropriate for
them. Some businesses might be too big, too small or too focused
on other types of retail sales.You know where you want your
business to go, so you should be selective about which
businesses receive your effort and attention.
Generating Profit
The focus of a retail business is to generate profits. It’s the
servicing Dealer’s job to convey to potential accounts how the
programs, the products and the Dealer will help customers
realize profits.
Programs
Programs provided by AMSOIL are designed to increase retail
sales and help increase business. For example, the Retail Co-op
Program provides monetary assistance to accounts for online,
newspaper, magazine,Yellow Pages, television and radio
advertising (G1071). The Co-op Program can also be used to buy
AMSOIL point-of-purchase items [see the AMSOIL Clothing and
Promotional Items Catalog (G1650) for available items].
AMSOIL also offers a 30-day credit line for qualifying accounts,
allowing them to get started quickly and stay well-stocked with
AMSOIL products.
Additionally, the Online Locator at www.amsoil.com is the
easiest and fastest way for customers to find retail accounts that
carry AMSOIL products. To be included on the Locator, an
account must have $500 in qualifying purchases in the past six
months and a completed profile page. A profile page includes
location, hours of operation and driving directions, as well as the
AMSOIL products and services the account offers. This
information improves customer service and helps drive traffic to
your auto service centers and retail locations, increasing sales.
AMSOIL products provide excellent gross profits for retail
accounts. Demonstrate how much accounts earn by selling at
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the suggested retail prices. Because AMSOIL products are sold to all
retail accounts at the same price, the largest discount retailers buy
at the same prices as the smallest specialty shops and pricing
competition is limited.
Products and Company
When explaining how retailers can profit from AMSOIL sales,
Dealers should point out that AMSOIL has a 40-year history of
successful business, is the First in Synthetics and has one of the
largest lines of synthetics in the world—large enough to provide
virtually any lubricant the store’s customers will need. High
demand for AMSOIL products and continual growth of market share
mean increased profits for the retailer and the Dealer.
®
AMSOIL also provides technical backup, not only through servicing
Dealers, but also through the company’s Technical Services
Department: (715) 399-TECH or [email protected].
The Dealer
Servicing Dealers aim to get products on retailers’ shelves. They
also are responsible for helping to get products off the shelves.
Selling the store on the product is the first step; selling the product
to the customers is the second, equally important, step. Retailers
may not have the time or knowledge to market AMSOIL products
adequately, so it could be up to the servicing Dealer. Dealers can
help retailers by regularly consulting with them on point-of-sale
matters and checking up on how things are going. Dealers should
know which products are moving and which aren't, and offer ideas
to make adjustments for those that aren't. Rotating product, setting
up merchandising displays or providing literature for distribution
may result in increased sales.
Another valuable service Dealers can provide for retailers is
training. Although the staff might be knowledgeable about
automotive items, they may not know much about synthetic
lubrication and the superiority of AMSOIL lubricants. By training
accounts’ staff, Dealers help themselves and the business. Training
gives staff members an education that helps them make informed
suggestions to their customers and increases the likelihood that
they will recommend AMSOIL products.
Encouraging the staff and managers to use AMSOIL products can
also help bolster sales. There’s no better advertising than personal
testimonials from the staff to sell AMSOIL products; their word will
go a long way with their customers. Excitement about AMSOIL
products will increase sales and everybody will profit from the
relationship.
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Making the Sale
An extremely important skill for a good salesperson to have is the ability to create the most
favorable conditions for approaching a potential account and making the sale. Timing,
preparation, meeting and following up work together to create an advantage for Dealers
committed to recruiting retail accounts.
Timing
The first step is to approach at an appropriate time. Avoid approaching potential retail
customers during busy times at their store, when they are unloading a truck, or at any other
time that would be inconvenient for them. The sale is lost when bad timing puts the customer
in a negative frame of mind.
Preparation
Preparation is important when approaching a potential customer
in person. Dealers should always carry business cards and
AMSOIL product literature to give potential customers.
Familiarity with AMSOIL products and their applications
illustrates a Dealer’s dedication to the products and AMSOIL
and helps strengthen customer confidence.
Meeting
It’s best to schedule an in-person meeting within a few days of
the initial call. When setting up an appointment by telephone,
Dealers should quickly state the purpose of the call and schedule
a meeting. Dealers should always confirm the appointment the
day before the meeting.
Following Up
After meeting with potential customers, Dealers are wise to follow up with an email and
business card. These are simple ways to create a lasting impression on potential customers
and increase the likelihood of gaining their business.
Fact-Finding in
Retail Accounts
In order to demonstrate the ability to meet customers’ needs, Dealers
must know those needs. Ask about the store or shop. Who are their
typical customers? What kind of service do they need? Dealers need
this kind of information to match their products and services with
customers’ needs. Do as much research as possible prior to the first
meeting.
As retailers' needs are discovered, Servicing Dealers can determine how well the company
suits them. What kind of shelf space is available? Are they open to displays? Will the
company allow employee training of synthetic lubrication and AMSOIL? Will employees try
the products themselves?
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Administration of
an Account
As in any business, independent AMSOIL Dealers must
observe certain AMSOIL policies and functional
procedures when registering new retail accounts.
Following the correct procedures for enrolling new
retail accounts will expedite the registration process.
Two methods of registration for retail accounts are
available: Traditional and online.
If the traditional method is preferred, all the forms
needed to register and administrate a retail account are
included in the Retail Account Kit (G1001). In addition
to some general informational items for Dealers to
present to potential clients, the kit contains several
forms. Some forms (Account Applications; Retail
Account Profile Sheet) are necessary for establishing
the retail account, while others (Account Order Form,
for accounts that wish to order product immediately;
Sales & Use Certificate, for accounts that claim tax
exemption) are necessary only for some accounts.
Dealers who prefer less paperwork can register retail
accounts using the EZ Online Application found in the
Dealer Zone at myaccount.amsoil.com (My
Business>Registrations>Retail & Commercial
Accounts).
Although most of the forms are self-explanatory, some
items warrant further explanation.
Account Application
To use the EZ Online Application process, log in to the Dealer
Zone. Under the My Business flyout menu, click the
“Registrations” link. Then click the “Retail & Commercial
Accounts” link and follow the prompts. When using traditional
paper forms to register accounts, complete the form at left
(G1388) and send to AMSOIL INC. Forms that are missing
information may delay account approval.
Note: Home-based businesses do not qualify for a retail account.
Credit Application
The Credit Application Form (G1391) is necessary for accounts
that wish to purchase product using the AMSOIL 30-day credit
line. The application form must be completed for review and
approval by AMSOIL. If accounts wish to pay directly or by COD,
they do not need to complete the Credit Application Form.
However, if AMSOIL denies a request for credit, the account will
be required to pay directly or by COD payment.
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The financial statement section is only for accounts that have no
other credit reference listing (e.g., a Dun & Bradstreet number).
Most businesses, however, have such a reference and do not need
to complete the financial statement section. The Dun &
Bradstreet Database is a credit approval database that helps
AMSOIL review the company’s credit history for approval. The
account will know if they have a D & B number.
Note: Always specify the amount of credit requested by estimating
monthly use. Providing fax numbers for references speeds up credit
approval.
If the company has a pre-printed list of credit references,
skip the trade reference portion of the application. However, the
company information must be completed and the application signed.
Credit Policy
Upon being established as a qualified account and prior to a
credit limit being extended, the account will be on a prepaid
cash basis and can order product at any time. Cash in advance,
COD or a valid credit card will be accepted for any orders the
account places in advance of AMSOIL establishing and
communicating a credit limit. This policy remains in effect until
the account is established­, credit history is analyzed and a credit
limit is determined.
Only commercial and retail accounts will be considered for the
extension of a credit limit. No Dealer accounts, whether old or
new, will be extended credit without prior written approval.
All retail accounts that request a credit limit must complete
and submit a Retail Account Application (G1388) and a Credit
Application (G1391). Dealers should have the account fill out the
applications and send them to AMSOIL.Applications should be
sent together to simplify the approval process.
AMSOIL must receive and approve a credit limit request before
acceptance of an initial order on credit. AMSOIL will notify
retail accounts of the amount of the credit limit. There are no
exceptions to this requirement.
Collections Procedures
Each month, AMSOIL sends out Statement of Account invoices
to all accounts with an outstanding balance.
When an account carries a balance beyond 30 days to 90 days
past due, AMSOIL attempts to contact the account by mail and
telephone. This is as a courtesy to remind accounts of their
outstanding balance and determine if payment has been sent or
when it will be sent. The account is then placed on a credit hold
until the past-due balance is paid. Accounts carrying an unpaid
balance will not be able to purchase more product until the
outstanding amount is paid.
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From 90 to 120 days, collection personnel attempt to reach customers by telephone to make
payment arrangements. Failure to follow through on commitments to pay results in accounts
being turned over to a collection agency (commissions and bonuses are not paid on accounts
sent to a collection agency).
How to Prevent Collections Action Against
Accounts
• Review monthly reports of commercial and retail accounts with open orders. Reports
give Dealers information on their accounts with outstanding balances.
• Maintain personal contact with customers, particularly those who carry unpaid balances.
Dealers do not earn commissions or bonuses on unpaid invoices.
•Contact AMSOIL collection personnel with any information obtained regarding
customers with past-due invoices. When possible, approach customers in a friendly
manner and try to collect payment from them in person.
•Resolve problems between customers and AMSOIL INC. as quickly as possible.
•Inform customers that an account that is sent to collections can never regain its line of
credit with AMSOIL. The account may continue to buy product at wholesale, but only
with pre-payment by credit card, check or COD.
Retail Account Profile Sheet
The Retail Account Profile Sheet is intended to give Dealers and AMSOIL more detailed
knowledge about the account. It gives Dealers the chance to interview the customer and
gather information useful in servicing the account.
Important: The profile sheet is to be completed by the Dealer. Make a copy of this form before
sending it to AMSOIL.
Account Order Form
The Account Order Form is only necessary for accounts that want to order product
immediately. Because Dealers are familiar with the products and the company, it is good
policy to assist the customer in filling out the form. Helping customers out and making
suggestions along the way could lead to a larger order than originally intended. There are
several ways for accounts to order product:
• Access the Online Store through the Retail Account Zone (myaccount.amsoil.com).
• Call the AMSOIL Ordering Line: (800) 777-7094.
• Complete the form and mail it to AMSOIL INC.
• Complete the form and fax it to AMSOIL INC.
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Shipping
The process of shipping and handling of product to retail accounts is simple. Given the
appropriate information, AMSOIL can take care of the entire process from the point of
purchase. Details regarding shipping and handling are spelled out on the Retail Account
Ordering Information Sheet (G2603). However, some points specific to retail accounts
warrant explanation:
1. Customers can choose to pick up product themselves from the nearest distribution
center. All they need is the account number when they pick it up. There is no shipping
and handling chargeif a customer picks up the order.
2. Dealers may order products shipped freight collect OR pre-pay the freight using the
schedule detailed in Book 2 of the T-1 Certification Series: How To Administrate Your
AMSOIL Business (G1306).
3. For retail accounts, there are freight discounts available based on the volume of the
purchase:
– $5,500.00 to $10,999.99—AMSOIL pays half the freight cost;
– $11,000.00 or more—AMSOIL pays all freight.
4. If accounts have specific instructions regarding delivery, they should be given to the
ordering operator.
5. The point of delivery must be a street address. Carriers will not deliver to P.O. boxes.
With proper administration and an understanding of the procedures involved in servicing
a retail account, it is possible to profit greatly from the AMSOIL Retail Account Program.
AMSOIL handles ordering, shipping and processing. All that’s left for Dealers is to sell to and
service the customers. However, any questions can be answered by the AMSOIL Account
Services Department at (715) 392-7101.
For further knowledge of the products and programs useful to an AMSOIL retail account’s
servicing Dealer, AMSOIL offers a wide variety of product and program literature. To
determine which literature items would be useful, order the AMSOIL Literature and Business
Tools Cata­log (G1045).
The Commercial Program
The next step taken by most AMSOIL Dealers who have mastered the Retail Account Program
is the AMSOIL Commercial Program. Book 9 in the T-1 Certification Series, How to Use the
Commercial Program (G1303), provides detailed instructions on how to register and service
commercial accounts.
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AMSOIL INC. retains the right to make modifications and/or revisions to the programs, procedures
and information contained herein.
AMSOIL INC., 925 Tower Ave., Superior, WI 54880-1527 (715) 392-7101 Printed in the USA. © Copyright 2014
6/14 G1302