- Retail Profits
- Commission Credits
Retail Profits are simply the difference between what you paid for a product (wholesale) and what you sell to product for (retail)
Each AMSOIL product is assigned a specific number of commission credits. You earn money each month based on the number of commission credits you have generated through your own Personal Retail Sales as well as your Preferred Customer, Retail on the Shelf and Commercial Account purchases along with your Sponsored Dealer's sales. Think of this as a rebate. Your rebate is calculated using the following scale:
The more commission credits you generate each month, the greater your percentage of rebate.
For example, if you generate 300 commission credits, your rebate will be $15 USD (300 x 5%)
If you generate 5000 commission credits, your rebate will be $1250 USD (5000 x 25%)
For a full explanation of Commission Credits, be sure to view this older post
Here is an example of how much you could earn on the sale of just one case of oil. I'll use Z-Rod 20W-50 in this example:
- Order a case of 12 and have it delivered to your door. My cost in BC is $158.87 including tax, eco fee and shipping ($13.24 each). I can reduce this cost using some of the tips mentioned in this older post
- Sell each quart at MSRP + eco fee and tax. Here in BC I'd sell at $13.55 (MSRP) + 0.15 eco fee + 12% tax = $15.35 For a retail profit of $2.10 each or $25.20 for the case of 12 quarts.
- Rebate. The case of Z-Rod would also qualify you for 64.69 commission credits. Depending on your monthly volume, you'd earn somewhere between 2% ($1.29) and 25% ($16.17) on your commission credits. Your potential income on the case of Z-Rod is between $26.49 and $41.37
You are free to set your own selling price. You do not have to sell at MSRP. Some dealers choose to sell for more than MSRP and others choose to sell for less than MSRP.
Your monthly commission (rebate) cheque is paid in USD. With our current low CDN dollar, your cheque could be worth even more than this example shows.
If you'd like to see the exact profit and commission credits on a product, log in to your dealer zone then go to Business Tools > Literature > Price Lists and Catalogues and look for the G3501 Dealer Profit List You'll see a column for Commission Credits and another for Retail Profit
I hope this helps.
PS, if you are not an AMSOIL Dealer and would like to learn more about the dealer opportunity, click here to request a free information package or call me directly. I'm here to help.