Discussion about Amsoil’s Home Dealership Business Opportunity

Amsoil ExecutivesWhen AMSOIL INC. was first created our goals were simple and straightforward. Foremost among them was providing the absolute best products we could possibly provide. I began by gaining as much knowledge as I could about synthetic lubrication. This required countless hours of research. I devoured every book and scientifi c paper available on the subject, then ultimately hired the most accomplished chemists I could find in the field of synthetic lubrication. Together, we laid the foundation of what would become a complete line of the finest lubricants in the industry. On a personal level, my financial goals were modest. I wanted simply to earn enough money to support my family and myself comfortably. Money alone was not what was driving me.

Beyond that, we as a company were determined from the start that AMSOIL INC. would take every measure to do the right thing at all levels in the operation of our business and in the corporate relationships we developed. That, of course, included the business opportunity we provided. We have insisted from the start that the AMSOIL business opportunity remains viable, affordable and profitable for all Dealers who are serious enough and willing enough to invest the time and effort. In that regard, we have employed a philosophy I learned very early in life; That is, a half a loaf of bread is better than none. We have always maintained extremely low profit margins in comparison to other companies, all to ensure greater profitability for our Dealers. Similarly, we have always refrained from raising our prices unless absolutely forced to do so by any number of costs beyond our control. Again, our concern is for the profitability of our Dealers. A half a loaf of bread is better than none, and the more successful our Dealers are, the stronger the company becomes.

Along similar lines, we have always taken great effort to provide the absolute best training possible for our Dealers. Once again, it is the right thing to do. AMSOIL University, for example, is specifically geared to arm Dealers with the expertise they can use to excel in all areas of this business. It is well documented that those Dealers who take advantage of the training we provide, especially AMSOIL U, attain greater levels of success at faster rates than those Dealers who do not.

We do right by our vendors, too. Although we will certainly never allow ourselves to be taken advantage of, we make no unreasonable demands. All we demand is a fair deal, and our vendors respect us for that. They appreciate our technical expertise and our relentless commitment to high quality. In fact, most of our vendors sincerely enjoy their visits to AMSOIL. They share in our challenge to develop great products, and they enjoy the friendships we establish.

Lastly, there is no denying that this company does right by consumers. Our products provide real and costsaving benefits that simply can’t be found with other products. Longer lasting equipment, reduced maintenance, reduced fuel costs and extended drain intervals all contribute to customer satisfaction. And when you top that off with the environmental benefits, it is overwhelmingly obvious that we deliver value that consumers just won’t find elsewhere in the industry.

And speaking of the environment, AMSOIL was recently recognized for doing the right thing as a responsible corporate citizen by an organization established by our local and city governments. The Superior/ Douglas County Count Me Green Program selected AMSOIL based on the processes we have established in virtually all areas of environmental stewardship. They cited our effort in recycling, which includes drums, totes, boxes, bottles, stretch wrap and banding. We recycle all of our batteries, light bulbs, absorbents, electronics, paper, glass, aluminum, copper and plastic. We use reconditioned totes and pallets, and all of our corrugated boxes are purchased from companies which carry the Sustainable Forest Initiative credential. We have also instituted an extensive environmental stewardship program to train our employees on material handling and recycling habits.

I know for a fact that each and every AMSOIL employee appreciates the extra measures this company takes to maintain the extremely high standards we have set. I would hope, also, that the pride they feel is shared throughout our Dealer network. As a company, we do the right thing, and that’s a claim not all companies can make.

 

A. J. “Al” Amatuzio President and CEO, AMSOIL INC.

Amsoil Product Updates

From the President's Desk

Amsoil President, Vice President and Managing DirectorThis past year, like most years, was unpredictable in many respects, yet predictable in others. The economy, of course, continued to affect virtually all categories of business, and AMSOIL was no exception. I am happy to report, however, that the company continued to grow in 2009 and we remain strong, stable and on the move. You can expect more of the same in 2010.

In terms of products, we will maintain full throttle on our research and development. At any one time at AMSOIL we have up to a dozen products under review that may or may not ultimately be developed. Careful analysis is done on each to determine its marketability. Performance levels, pricing, potential markets and many other variables are scrutinized to determine a product’s feasibility. The ultimate goal, as always, is to develop products that bring benefits to consumers and profits to our Dealers. This we will do.

As the lubricant industry becomes increasingly more complicated with the addition of more regulations, service classifications and equipment refinements, AMSOIL will remain at the cutting edge. Our willingness and ability to adopt new technologies and push performance parameters to the limit set us apart from other companies. For example, an emission policy recently passed down by the Environmental Protection Agency that demands a reduction in carbon monoxide, hydrocarbons and nitrogen oxides emitted by small, off-road gasoline engines will require changes in motor oil formulations. Other companies will set their sights on the minimum standards, solely to satisfy the EPA mandate. AMSOIL, on the other hand, will develop products that excel in those applications, including outboard motors, lawn mowers, personal watercraft and all other non-road small engine equipment.

Similarly, and on an even larger scale, the ILSAC GF-5 passenger car motor oil specification, which is scheduled for implementation in 2011 and is designed to help original equipment manufacturers meet EPA regulatory requirements, will require the development of more sophisticated motor oils. This works to the benefit of AMSOIL. While other companies may struggle within the confines of their cost/ profit restraints, AMSOIL will develop formulations that exceed GF-5 specifications and maintain AMSOIL standards. We will continue to work closely with our suppliers and select only those technologies that yield the absolute best results in terms of quality and performance.

It doesn’t matter what the challenge is. Whether it’s a regulation imposed by a government agency, a performance issue encountered through equipment design or an obstacle kicked up by an unstable economy, AMSOIL will remain on track. And Dealers can be assured that AMSOIL will continue to provide those components that are absolutely essential to creating and maintaining a highly profitable business opportunity.

First and foremost is the high quality of our products. Beyond that is the stability of this company. Any potential AMSOIL Dealer can look at our longstanding stability and determine immediately that the business opportunity we provide offers real, absolute potential. Second, we make no outrageous promises, but can guarantee that hard work and dedication can translate directly to Dealer success. Finally, is training. Whether through our website, printed materials, AMSOIL University, personal contact with corporate staff members or any other resource we provide, any Dealer has access to the education necessary to succeed in his or her AMSOIL business.

As we look ahead now to 2010, I can confidently say to all Dealers that the only real limitations they have are those they create for themselves. This company will continue to grow, and we can all look forward to another challenging, yet successful year.

A. J. “Al” Amatuzio President and CEO, AMSOIL INC.