Texas Refinery
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Family-run business is a leader in specialty market
If it ain’t broke, don’t fix it, as some would say. This motto reflects the overall approach that Texas Refinery Corporation has taken in doing business for several decades. The mere fact that Texas Refinery Corporation has been a leader in its specialty market for 87 years and continues to retain customers, sales and staff speaks volumes about the company. ABJ caught up with Jerry Hopkins, the president of Texas Refinery Corporation, who told us about the company’s keys to its long-time success.
Texas Refinery Corporation has been a family-run business since it was established in 1922. One of the original founders and owners was A. M. Pate, whose grandson, A. M. Pate III, is now chairman of the board. The company markets specialty lubricants and protection coatings for industrial customers under the Texas Refinery label.
Typical customers are industrial-type companies, including farms, construction, drilling, mining and trucking companies, schools, cities, counties, townships and manufacturers. Products supplied to these customers range from high-quality greases, lubes, engine oil, fuel conditioners, hydraulic oils, industrial cleaners and asphalt cleaners. In other words, products that these industries need to conduct their business.
Great advantage
The industry leader believes part of its long-time success has to do with the fact that they create and manufacture their products internally. “We have our own lab and formulate our own products. We manufacturer our own products meeting our own specifications; we warehouse these products in various locations, such as Alabama, North Carolina, Minnesota, California and more across the country. We also have two plants and offices in Mexico, as well as in Canada: one in Toronto, Ontario and another in Moose Jaw, Saskatchewan,” tells Hopkins. “We have sales people throughout these countries selling to customers locally,” says Hopkins, adding that personalized service is a value-add for many customers.
Quality makes this product line stand out
Perhaps what makes Texas Refinery most unique in its product line is its quality-control policy.
“Since we’re manufacturers and not just distributors, we feel we can control the quality of our products. This is important to us because if equipment lasts longer and doesn’t break down, those customers come back and see us time and time again,” explains Hopkins.
In order to help ensure quality, Texas Refinery does what is called ‘over-specking’ to a product. “One of the major laboratory tests for lubricating grease is called a Timken load. A number is given to the grease pressure application, which ranges between 50-70 Timken load, and that is considered a pretty good one. Our top-selling grease called 880 Crown and Chassis lubricant has a Timken load of over 100 (which is over-specking),” says Hopkins. In other words, Texas Refinery aims to make the product better than what it needs to be. “And that’s our philosophy,” says Hopkins, adding another example of this approach is demonstrative in their engine oil.
In this case, a total base number (TBN) is a number given to engine oils to qualify how much additive is in it. Normally, engine oils have a TBN of 10, which is considered to be in a very good range. However, Texas Refinery’s heavy duty engine oil has a TBN of 14. “That’s considered quite excellent; in fact, hardly any of the other competitors have such a ranking. We follow the philosophy that we’re taking care of very expensive equipment, ranging anywhere from $100,000 to millions very easily,” explains Hopkins. Because of this, Texas Refinery aims to sell the best quality end of products that will eventually be very inexpensive for the customer, since it extends the life of such equipment. Customers are willing to pay more for high-quality maintenance products, especially when it means better protection over the long-term.
Employees link products to customer base
The family-run and operated company attributes its longevity and success to its customer-oriented and sales-oriented approach. Customers say they find loyalty to Texas Refinery’s product line because of its high quality. In turn, the company’s sales force is the link to the community and clientele. “As a result, it is imperative that the sales person believes in the products and the company. We’re very proud that our sales people stay with us for decades,” Hopkins says. “We have one sales person located in Massachusetts who has been with us for 25 years, another in Mississippi for 40 years, and out of the top 25 sales people, the average link for service is around 20 years,” tells Hopkins. It comes as no surprise, then, that there are a number of sales employees who are second and third generation.
Challenges
The slowdown in the U.S. economy has been challenging for the lubricant and protective coating manufacturer. Because a majority of their accounts are industrial-based, the slowdown in their customers’ line of work has translated to a reduced demand. Despite the hurdle, Texas Refinery takes a proactive approach.
“Our philosophy is that there is always a need for our products.
That means, when things get slow, we just need to buckle down and work a little harder. We need to ask our sales people to work a little harder, because if we outperform our competitor, we feel we will be justly rewarded,” he says.
Future plans
The greatest thing about having years and years of experience is the familiarity with your market. “Our plan is to stay in our niche and continue to serve customers through sales people in that specialty market. If we continue on, we don’t see how we won’t be successful for another 87 years,” Hopkins says proudly.
www.TexasRefinery.com
If it ain’t broke, don’t fix it, as some would say. This motto reflects the overall approach that Texas Refinery Corporation has taken in doing business for several decades. The mere fact that Texas Refinery Corporation has been a leader in its specialty market for 87 years and continues to retain customers, sales and staff speaks volumes about the company. ABJ caught up with Jerry Hopkins, the president of Texas Refinery Corporation, who told us about the company’s keys to its long-time success.
Texas Refinery Corporation has been a family-run business since it was established in 1922. One of the original founders and owners was A. M. Pate, whose grandson, A. M. Pate III, is now chairman of the board. The company markets specialty lubricants and protection coatings for industrial customers under the Texas Refinery label.
Typical customers are industrial-type companies, including farms, construction, drilling, mining and trucking companies, schools, cities, counties, townships and manufacturers. Products supplied to these customers range from high-quality greases, lubes, engine oil, fuel conditioners, hydraulic oils, industrial cleaners and asphalt cleaners. In other words, products that these industries need to conduct their business.
Great advantage
The industry leader believes part of its long-time success has to do with the fact that they create and manufacture their products internally. “We have our own lab and formulate our own products. We manufacturer our own products meeting our own specifications; we warehouse these products in various locations, such as Alabama, North Carolina, Minnesota, California and more across the country. We also have two plants and offices in Mexico, as well as in Canada: one in Toronto, Ontario and another in Moose Jaw, Saskatchewan,” tells Hopkins. “We have sales people throughout these countries selling to customers locally,” says Hopkins, adding that personalized service is a value-add for many customers.
Quality makes this product line stand out
Perhaps what makes Texas Refinery most unique in its product line is its quality-control policy.
“Since we’re manufacturers and not just distributors, we feel we can control the quality of our products. This is important to us because if equipment lasts longer and doesn’t break down, those customers come back and see us time and time again,” explains Hopkins.
In order to help ensure quality, Texas Refinery does what is called ‘over-specking’ to a product. “One of the major laboratory tests for lubricating grease is called a Timken load. A number is given to the grease pressure application, which ranges between 50-70 Timken load, and that is considered a pretty good one. Our top-selling grease called 880 Crown and Chassis lubricant has a Timken load of over 100 (which is over-specking),” says Hopkins. In other words, Texas Refinery aims to make the product better than what it needs to be. “And that’s our philosophy,” says Hopkins, adding another example of this approach is demonstrative in their engine oil.
In this case, a total base number (TBN) is a number given to engine oils to qualify how much additive is in it. Normally, engine oils have a TBN of 10, which is considered to be in a very good range. However, Texas Refinery’s heavy duty engine oil has a TBN of 14. “That’s considered quite excellent; in fact, hardly any of the other competitors have such a ranking. We follow the philosophy that we’re taking care of very expensive equipment, ranging anywhere from $100,000 to millions very easily,” explains Hopkins. Because of this, Texas Refinery aims to sell the best quality end of products that will eventually be very inexpensive for the customer, since it extends the life of such equipment. Customers are willing to pay more for high-quality maintenance products, especially when it means better protection over the long-term.
Employees link products to customer base
The family-run and operated company attributes its longevity and success to its customer-oriented and sales-oriented approach. Customers say they find loyalty to Texas Refinery’s product line because of its high quality. In turn, the company’s sales force is the link to the community and clientele. “As a result, it is imperative that the sales person believes in the products and the company. We’re very proud that our sales people stay with us for decades,” Hopkins says. “We have one sales person located in Massachusetts who has been with us for 25 years, another in Mississippi for 40 years, and out of the top 25 sales people, the average link for service is around 20 years,” tells Hopkins. It comes as no surprise, then, that there are a number of sales employees who are second and third generation.
Challenges
The slowdown in the U.S. economy has been challenging for the lubricant and protective coating manufacturer. Because a majority of their accounts are industrial-based, the slowdown in their customers’ line of work has translated to a reduced demand. Despite the hurdle, Texas Refinery takes a proactive approach.
“Our philosophy is that there is always a need for our products.
That means, when things get slow, we just need to buckle down and work a little harder. We need to ask our sales people to work a little harder, because if we outperform our competitor, we feel we will be justly rewarded,” he says.
Future plans
The greatest thing about having years and years of experience is the familiarity with your market. “Our plan is to stay in our niche and continue to serve customers through sales people in that specialty market. If we continue on, we don’t see how we won’t be successful for another 87 years,” Hopkins says proudly.
www.TexasRefinery.com
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