Our recent article about a quick lube franchise dropping all conventional motor oils and only offering synthetic lubricants at $50 per oil change made us ponder…. How can a business make profits offering a Synthetic Oil Change for $50? Wouldn’t you know it, this month’s (March 2025) AMSOIL Dealer Magazine addresses our question.
Addressing questionable quality of some synthetic motor oils currently on the market
Alan Amatuzio, CEO and Chairman of AMSOIL Inc. in the AMSOIL Dealer Magazine for March 2023 spells out what is happening in the lubricant industry with this article.
From the Chairman
In the January edition of “Lubes ‘N’ Greases” magazine, longtime LNG contributor and president of consulting firm Petroleum Trends International Tom Glenn painted a gloomy picture of quality in the motor-oil market. His article captured my attention because many of his concerns. Glenn points out that products sold based on specifications are vulnerable to commoditization. As competition increases and all market participants are aiming for the same set of performance specifications, it becomes harder to differentiate between brands.
This typically leads to customers making buying decisions based almost entirely on price, and therefore, competing brands work hard to reduce the selling price of their products. That’s great when it benefits consumers, but there are gaps in oversight in our industry that allow unethical companies to market products that claim to meet certain standards, but sell at a price below what it would cost to manufacture an oil that performs as claimed. That puts customers’ vehicles at risk and it’s just plain wrong.
Glenn cited an American Petroleum Institute (API) report that revealed that nearly 50% of the engine-oil samples tested through the API audit program failed to comply with licensing standards. In addition, 15% of samples were categorized as “questionable additives,” meaning their chemical composition did not match that of the fingerprint established at licensing. Add to that the ambiguities surrounding the definitions of “synthetic” and “synthetic-blend” motor oils and the only thing that’s clear is that consumers should be wary.
“At AMSOIL Inc. We do not formulate down to a price; we formulate up to a performance standard.” Alan Amatuzio, CEO AMSOIL Inc.
While some of our competitors may engage in unethical practices, sacrificing quality, their brand and their promise to the customer, AMSOIL is standing firm. We do not formulate down to a price; we formulate up to a performance standard. We insist on providing products that perform as promised, and, well, you get what you pay for. Product quality has been a cornerstone of our brand since day one, and it is important that everything about AMSOIL reflects the quality of our products. As we grow, aspects of our business outside of product quality can be challenged to keep pace while upholding our high standards — maintaining enough inventory, packing and shipping orders quickly and minimizing telephone on-hold times all become more difficult with growth.
We are not going to grow at the expense of quality or the customer experience, so we need to take steps to ensure we’re able to maintain our high standards in all areas. To reinforce that notion, we recently launched a “quality first” initiative to beef up our commitment to earning the loyalty of every customer. To be clear, our commitment never faltered; however, we feel like the topic is worthy of continual examination and improvement. The quality first initiative is not about product quality; it’s about highlighting the importance of our customers’ overall experience and ensuring they get what they deserve. We are focusing on making sure we have the best packaging, we have products available to fulfill demand and orders are delivered on time. We are making capital investments and adding a second production shift to keep pace with demand and improve our ability to delight Dealers and customers. We are systematically evaluating all aspects of our business to ensure everything associated with AMSOIL is as high quality as the lubricants we manufacture.
However the quality issues in our industry shake out, you can trust that AMSOIL will remain right where we’ve always been — at the top.
Alan Amatuzio
Chairman & CEO
Download the AMSOIL Installer Program Brochure to learn how offering quality synthetic lubricants and engine oils at your shop can increase profits and attract High Value Customers!
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8 Reasons not to offer a low cost and low quality synthetic oil change at your shop or your quick lube.
Offering a low cost ($50) synthetic oil change may have several cons, including:
- Low profit margin: The cost of synthetic oil and labor may be close to or even exceed $50, leaving little to no profit margin for the service provider.
- Undervaluing the service: Synthetic oil changes are a premium service that requires high-quality oil and skilled labor, so pricing it at $50 may undervalue the service and attract customers who are only looking for a cheap option.
- Attracting price-sensitive customers: A low price point of $50 may attract customers who are extremely price-sensitive and may not appreciate the value and performance of a high quality synthetic oil or the quality of the service.
- Difficulty in upselling or cross-selling: With a low initial price point, it may be challenging to upsell or cross-sell additional services, such as tire rotations or brake inspections, as customers may be hesitant to spend more money.
- Potential for increased workload: Offering a synthetic oil change at a low price point may attract a high volume of customers, which could lead to an increased workload and potential delays or decreased quality of service.
- Competition from discount shops: A $50 synthetic oil change may put the service provider in direct competition with discount shops or quick-lube chains that can offer similar services at a lower price point due to their high volume and low overhead.
- Limited ability to use high-quality oil: To keep costs low, the service provider may be forced to use lower-quality synthetic oil, which could compromise the quality of the service and potentially damage the reputation of the provider.
- Difficulty in justifying the use of synthetic oil: With a low price point, it may be challenging to justify the use of synthetic oil, which is generally more expensive than conventional oil, and customers may question the value of the premium service.
The Slippery Slope of quality of synthetic oils.
All Synthetic Oils are not created equal! When we first got started in AMSOIL back in 1999, we had found out that in the late 1990s during a dispute between Mobil Oil Co. and Castrol Inc. It came into question the fact that Castrol was using Group III Hydrocracked¹ and oil and was marketing it as synthetic. Mobil challenged this as fraudulent advertising. A hearing was conducted by the National Advertising Division of the Better Business Bureau. In this hearing it was decided that Synthetic was a Marketing Term, NOT a technical or chemical term. As a result, Group III Hydrocracked oils could be marketed as synthetic. While many engine oils have increased in quality and performance, some companies have decided to lower the quality of their products to meet a price point.
As stated in above article written by the CEO of AMSOIL, we will not cheapen our brand by using lesser quality formulations. We will continue to develop products to a determined performance level and not a price point.
Be suspicious of low priced synthetics that cost less than high-quality conventional oils. If you question the quality of the oils you offer, consider taking a look at what AMSOIL offers for retailers, shops, and quick lubes. We believe that you will increase your high value customers as well as increase profits.
Choose AMSOIL!
1. Group III Base Lubricants:
Group III base lubricants, also known as hydrocracked base oils, are produced through a process of hydrocracking, which involves breaking down complex molecules into simpler ones using high pressure and temperature in the presence of a catalyst. This process results in a base oil with a high viscosity index, low sulfur content, and excellent low-temperature properties.
Read the Original Alan Amatuzio Chairman’s message here: 3-25 AMSOIL Magazine Alan Amatuzio
Read the original Lubes and Greases Article here: Lubes and Greases Jan 2025 Concering Synthetic Oil Quality
