the President's Desk
times over the years, I have been approached by other corporations
or investors who wish to purchase AMSOIL, Inc. I recently received
another such offer in a letter stating that their research indicated
we made excellent products and had a good
management team in place. Yes we do and yes we have,
but my response is and has always been... "not
AMSOIL enjoys an excellent reputation in the marketplace.
Our name means high quality products to millions of people.
This is bound to attract potential investors. It also has attracted
the interest of some large retailers. They know the AMSOIL name
is marketable. But there would be major drawbacks for us and
our Dealers if we let them buy and sell on their terms.
Some time back, one of our Dealers asked AMSOIL to assist
in preparing a proposal to a large discount retailer. We backed
out when the discounter insisted on purchasing and selling our
products at a lower price than our Dealers can purchase and
sell the products for. In essence, we turned our backs
on a possible multi-million dollar a year sale because we knew
it wasn't good for AMSOIL Dealers.
AMSOIL is committed to multi-level marketing and to our Dealers.
We won't do anything that we feel will hurt our Dealer
network. There have been a number of MLM companies
who have used their dealers to put them on the map, then turned
their backs on them and abandoned MLM for conventional marketing.
Can you imagine how frustrated and disappointed those dealers
had to be? All their work building sales organizations went
down the drain.
That will never happen here at AMSOIL. We have a great relationship
with our Dealers, and we like it that way. We make a great team,
AMSOIL INC. and you Dealers. We are all growing and prospering
together in this business and that's exactly how our marketing
plan is designed to work. And whether it be someone trying to
buy this company or someone trying to undercut our Dealers,
we don't want any part of it.
Part of our mutual success has been due to our promotional
efforts, which include our racing promotions. Have you seen
the December 24 issue of Snow Week magazine? It is
quite an exhibit of AMSOIL snowmobile racing. The front cover
features a full page photo of Justin Tate flying through the
air on a machine that is totally emblazoned With AMSOIL logos.
Inside is a double page ad for Ski-Doo showing Justin's number
28 machine, again covered with AMSOIL logos. Then the feature
story is about Justin Tate's win at the Spirit Mountain, Minnesota
race. AMSOIL totally dominated this issue of Snow
AMSOIL's supercross racing season got off to a blazing start,
as well. As noted in our racing update in this Action News,
all four of our riders accepted awards at the supercross season
opener in Anaheim, California.
You just can't buy advertising like that.
Seeing our name over and over in magazines and our riders on
the winner's podium gives tremendous credibility to the performance
of our products. That, after all, is the reason we're involved
in racing in the first place.
I also want to congratulate our Dealers for taking advantage
of our presence and success in racing. Our performance products
sales have increased tremendously this past year thanks to your
efforts and our racing promotions. This is especially true of
our two-cycle oil sales, which have increased over 50% this
past year. That, on top of a 50% increase over the previous
year, makes our two-cycle oil one of our best selling
The fact is, our sales should be increasing dramatically,
because we make the best products
in the world, period. A friend of mine told
me about an acquaintance who was researching lubricants over
the Internet and determined that AMSOIL made the best motor
oils and Mobil came in second. But he said someone made the
comment that the owner of AMSOIL was an "arrogant"
I suppose I may have that reputation with some people, because
I know our lubricants are the best made and
I'm not shy about saying so. If that's being arrogant, then
I guess I'm arrogant. But in business, you've got to "toot
your own horn", because if you don't, nobody else will.
Of course, you must have something legitimate to toot about
or you could be labeled a blowhard.
Fortunately, we all have something to "toot" about
these days. Our products are excellent, our dealerships are
growing, our promotions are successful, and our sales continue
to grow. Your wagon is hitched to a winning team. We're on our
way to another banner year in 2002. Let's continue making things
||A.J. "Al" Amatuzio
President and CEO, AMSOIL, INC.