Not all distributors are the same; they vary significantly in their structures, services, and market focus. Understanding the various types of lubricant distributors, their unique characteristics, and how they cater to different market segments is an invaluable asset in your sales toolkit.
There are 4 main types of distributors:
1. Multi-state Mega Distributors 
Example: RelaDyne, Cadence, Parkland, Brenntag, Petro-Choice
- Wide Product Range: Offer a comprehensive range of lubricants, including automotive, industrial, marine, and aviation products.
- Technical Expertise: Provide extensive technical support and services, including product recommendations, oil analysis, and training.
- Strong Relationships: Often have strong relationships with multiple lubricant manufacturers.
- Market Coverage: Serve a broad range of industries and applications, making them versatile and widely accessible.
Regional Distributors can be broken into two categories:
2. Large Regional Distributors
Example: Vesco, Flyers, SC Fuels, West Direct
3. Local / Regional Distributors
Example: Parent Petroleum, Northern Energy, Gulf Coast Oil, Hill Petroleum
- Geographic Focus: Operate within specific geographic regions, providing localized distribution and support.
- Local Market Knowledge: Have in-depth knowledge of local market conditions, customer preferences, and regulatory requirements.
- Responsive Service: Offer quick and responsive service to meet the immediate needs of customers within their region.
- Logistics: Emphasize efficient logistics and distribution within their operating area.
4. Smaller Local Distributors
Example: Small & Sons, Burkett Oil, Burck Oil, River City, anyone carrying P66 or Citgo
- Highly Localized: Operates within a specific community, providing support and a distribution point for small and local businesses.
- Local Market Knowledge: Have in-depth knowledge of local market conditions, customer preferences, and regulatory requirements.
- Small Team: A small team is able to react quickly and be flexible with their customers. A smaller team also fosters more personal relationships.
Product Lines that distributors carry:
Single Line (Handling only one key major brand, like Mobil, Shell, or Chevron)
These distributors are fairly rare, but have a strong loyalty to their brand partner. Many do have a private label or house brand to combat low priced competition, but frontline the major oils product line.
Multi-Line (Handling two or more major brands as well as other tier two lines, i.e.; Castrol, P66, Total, etc.)
Most Distributors fit this category as product lines have been added over the years due to acquisitions. Many have collected brands to keep them out of the hand of competitors over time. Depending on how many lines they have, it is becoming more and more difficult for these distributors to satisfy all the brand partners they have.
In the past few years, all major oil companies have been placing more pressure on their distributor partners to achieve gallon commitments.