Amsoil Responds to Industry Demand with New 5W-20 Motor Oil

It’s interesting how things work out. I have been thinking about the subject of my next message to our Dealers these past few days. I wanted to tell you all how great business has been and congratulate you on how well so many of you are doing in this business. Then, I got a call from my good friend, Jack Arotta, and I have an all new message not quite as upbeat.

Jack was the first person to use my experimental synthetic motor oil back when I was flying jet fighters and starting an oil company was only a dream for me. He put my experimental oil in his brand new 1966 Ford. ( I eventually told him he had better drain it until I did more testing.) In later years, I kidded him about putting untested oil in his new car. He said he had to do it. After all, I was his commander.

Anyway, Jack is totally sold on AMSOIL products. He owned a business in Duluth, Minnesota, where he operated a number of vehicles, including delivery vans. He would literally run those vehicles until the bodies fell off the frames, but the engines and drive trains were still going strong on AMSOIL lubricants.

Jack called me from the west coast of Florida, where he was visiting his sister and her husband, Ray. Ray had just purchased a 19-foot runabout with a 350 Chevrolet engine. Jack told him he should switch the boat over to AMSOIL lubricants. Jack has owned and operated a number of boats on Lake Superior over the years and they were all lubricated with AMSOIL products.

Jack set out to find an AMSOIL Dealer. He looked under lubricants in the yellow pages, but there were none listed. He called a number of marine supply stores, but to no avail. He finally stopped at a marine supply store near Ray’s home and asked why they didn’t stock AMSOIL Lubricants. The owner said he had received a number of requests for AMSOIL but he had never been approached about marketing the products.

Now this is where I knew my message was going to change. I’m sure most of you are just like me. There’s nothing you dislike more than to hear that a potential customer can’t find you or your products. It’s hard for me to believe that there is a single phone book in this country that doesn’t have an AMSOIL Dealer listed, but I guess there are.

If your business has been growing and you haven’t advertised in the one place that most people look when they want to find a product, just imagine how much better you could be doing if you did advertise in the yellow pages. And if your business is not doing as well as you would like and you haven’t advertised in the yellow pages yet, for goodness sakes, do it now!

Also consider how many businesses are out there right now who know about your products, have had requests for your products, yet have never been given the opportunity to become a retail outlet for your products. These are business people who would welcome a visit from an AMSOIL Dealer to explain how they could profit from selling AMSOIL products, as so many other retail businesses have been doing in recent years.

They may have seen our magazine ads, or our logo on racing machines on TV, or had customers requesting AMSOIL products, but they have never once been approached about selling them. To my way of thinking, there is something wrong with that picture.

Yes, these are good times for AMSOIL and AMSOIL Dealers, and my original message was to celebrate this fact. But considering Jack’s story, business is obviously not as good as it could be. I remember many years ago, the common complaint from people who were interested in using AMSOIL products was they couldn’t find a Dealer. There is really no excuse to hear that complaint today, and it is very disappointing when I do.

My friend Jack finally broke down and bought some Mobil 1. He was very apologetic, but he figured at least it was a synthetic oil. He said he put in some 5W-30 and asked what I thought of that. I had a hard time being too critical, but I certainly wasn’t enthusiastic. I said, “It’s better than nothing, I guess.”

As the economy slows down, consumers have become even more demanding. They want maximum value for their money. That is good news for AMSOIL Dealers, because our products are not luxury products. They are solid investments that help keep high priced vehicles and equipment operating properly and lasting longer. They deliver full value and then some.

But we can’t expect people to beat a path to our door. We need to make it as easy as possible for them to buy from us. That means yellow pages advertising. That means signing up Retail Accounts. If you are not doing either of these, it’s certainly time to begin!

Amsoil Action News June 2003

Amsoil President Al “A.J.” Amatuzio

AMSOIL celebrates its thirty years in business this summer. It’s interesting how some things have not changed at all during that time. Thirty years ago, oil companies and vehicle manufacturers were recommending 2,000 to 3,000-mile oil drain intervals. Today, the auto manufacturers have increased their drain recommendations significantly. But despite the improvement in motor oils made during these past 30 years, and despite the fact that the same oils are used in Europe with much longer drain intervals, oil companies here in the U.S. are still promoting 3,000-mile drain intervals.

According to a feature article in the March issue of Lubes ’n Greases magazine, that represents the “unneeded production of 300 million to 400 million gallons of engine oil” every year! Who pays for all that unneeded motor oil? It’s the motorists who change oil more often than necessary. And who profits from producing all this unneeded motor oil? The oil companies who continue to recommend frequent oil changes!

The article was written by David McFall, past president of the American Petroleum Institute (API) and Automotive Editor for Lubes ’n Greases magazine. He minces no words in questioning the motives of oil companies, asking why their oils can be used for 10,000 miles in European vehicles while being recommended for only 3,000 miles here in the United States. Most of us already know the answer to that question. The oil companies don’t want to see their market cut by at least half by extending drain intervals. They’ll stick to their 3,000- mile drain recommendations as long as the American consumers will keep buying into it, at an estimated annual cost of $1.5 billion, according to McFall.

Oil specifications and drain recommendations in Europe are controlled by the vehicle manufacturers, with the oil companies having less influence than here in the U.S. Because of higher costs, Europeans are more careful about wasting energy. They are also very environmentally aware. They would not put up with the cost, waste, and environmental effects of changing their oil every 3,000 miles. They are very aware of the improved performance synthetic motor oils provide. To illustrate how the performance of synthetic oils are appreciated, take note of what follows.

Owners of Mercedes-Benz automobiles in the U.S. were recently awarded a $32-million settlement because they were not informed they should use synthetic motor oil. Mercedes utilizes a system designed to help owners lower maintenance costs and reduce the adverse environmental impact of used motor oil. The system extends drain intervals to when the oil actually needs to be changed, rather than at set predetermined intervals.

They start with 10,000-mile drains and push them up to 20,000 miles, using synthetic motor oils! The problem occurred because these U.S. owners were told to use conventional motor oils, which could not stand up to those extended drain intervals.

According to the suit, this promoted more engine wear than if they had been using the originally specified synthetic oil. Now if that isn’t a testimonial as to the superior performance of synthetic motor oils, I don’t know what is. Thirty-two million dollars is a tidy sum to pay for increasing engine wear, but the company did not dispute the fact that the drain intervals determined by their system were too long for conventional oils. McFall’s article singled out AMSOIL as the only oil company actually recommending extended drain intervals. He notes that the other oil companies either don’t make drain recommendations or stick with their 3,000- mile recommendation. Consumers must refer to their owner’s manuals, which almost always recommend more miles between oil changes than 3,000 miles for normal operation, or they can listen to their car dealers or oil change specialists, who push frequent oil changes to keep their cash registers ringing.

Mercedes-Benz should be commended for specifying synthetic lubricants for their superior performance and for extending drains to minimize the adverse effects of used motor oil on the environment. As time goes on, there will be an increasing number of companies who will do the same. But that won’t happen if the oil industry can help it. They are actively working to keep the status quo, promoting many more oil changes than necessary, wasting precious resources, and creating the need to dispose of more pollutants in the form of used motor oil.

AMSOIL coined the term “extended drain intervals” back in the early days of the company. We were the pioneer in extending drains, producing synthetic lubricants that performed well beyond what anyone thought possible. Today, like in this article by McFall, we are recognized as the leaders in producing extended drain lubricants. Our success proves the world is ready for our products. There is no doubt they are needed more today than ever.

Amsoil Action News August 2001

Amsoil President A.J. Amatuzio’s News Desk

First, I want to congratulate you all for recognizing the AMSOIL opportunity and making it work so well for you and all of us here at AMSOIL. Your sales are up, your sponsoring is up, and when you enjoy success, we also enjoy success. We are, after all, dependent on each other. That’s what I want to talk about to you in this message; our interdepenence.

The most important element in both our businesses success continues to be the excellent products we manufacture and you market. As most of you know, I take a tremendous amount of pride in the products we manufacture. Our company makes the best lubricants in the world, period. I don’t hesitate to make that statement and challenge anyone or any other company to prove me wrong. That won’t happen because our competitors know it’s true.

But, if you want to know anything about a company, the best people to talk to are its suppliers. They know better than anyone else the caliber of a company’s products because they supply the raw materials used to make them. AMSOIL purchases raw materials from some of the largest corporations in the world, and their representatives call on us on a regular basis.

In past weeks my staff and I met with two such companies. One representative acknowledged that based on the products we purchase from them, they know our goal is to produce the best lubricants on the market. He said when his company develops new and better products, AMSOIL is the first company they call. They know if they can produce a better performing product, we will be interested. Our criteria is always to buy raw materials that outperform everything else on the market so our finished products do the same.

I was pleased to have our staff hear this comment coming from such a large and respected company. Among ourselves, we are very confident that the lubricants we make are the best, but we are also always looking for ways to improve them, and its good to know our suppliers understand and appreciate this.

At another such meeting with another supplier from a giant additive company, I noted that generally speaking, the best lubricants today are made in Europe. These gentlemen agreed, but also pointed out that none compare with the quality of AMSOIL lubricants. He said U.S. oil companies are just now trying to do what I did twenty five plus years ago, but they still don’t have the commitment to quality that has made AMSOIL what it is today. Believe me, that commitment remains as strong today as it was when I started this company. As I watch and listen to my staff at these meetings, I can’t help but take pride in the fact that they demand the best our suppliers have to offer. They won’t accept second best because they know I won’t!

Over these past nearly thirty years, the name AMSOIL has become synonymous with high quality lubricants and other products. You, our Dealers, depend upon AMSOIL to provide you with these highest quality products. And we, in turn, depend upon you to sell those products and continue to build our sales force through your sponsoring. Your success guarantees our success, and vice-versa.

This issue of Action News introduces our newest top quality product, our Formula 4-Stroke Motor Oil. This product answers the need for motor oils used in ATV’s, 4- stroke outboards, lawn and garden equipment, motorcycles, and other 4-stroke engines. It, along with the many other products we manufacture that are used in outdoor machinery and sporting equipment, make it easier than ever to sign up Retail Accounts that sell sports equipment. That includes our 2-cycle oils, marine lubricants, motorcycle oils, chaincase oil, greases, MP and MPHD, shock oils, etc. The AMSOIL name is known and respected in this market and you should definitely be taking advantage of it in your business.

I was speaking to my good friend Direct Jobber, Matt Koenig, the other day about his AMSOIL business. Matt has always placed a lot of emphasis on personal sales and has been quite successful doing so. But he told me he has become more and more aware of the importance of sponsoring and building his organization. It is crucial in maximizing the income potential of his business, just as it is for every AMSOIL Dealer. That’s why signing up Retail Accounts that can sell your whole line of outdoor sports equipment lubricants should be a part of your business plan.

Our job here at AMSOIL is to provide the tools required to make your success as easy to attain as possible. The quality of our products is paramount in that effort. But the one thing we can’t provide is the motivation to work hard at your business. Motivation has got to come from within, and we need to continually re-motivate ourselves. Like one of our keynote speakers at a past AMSOIL Convention, Zig Zigler, once said, getting motivated is just like taking a shower. It doesn’t last. You’ve got to take your shower every day!

Lack of Drivers, Aged Infrastructure Slowing Industry Growth

According to a recent article in Fleet Owner Magazine, trucking experts who contend there’s a “growing but slowing” trend affecting the industry are blaming driver shortages and highway congestion for problems both current and future.

Thomas Finkbiner, chairman of the Intermodal Transportation Institute at the University of Denver and president and CEO of Tampa, Fla.- based bulk transporter Quality Distribution, believes large and small for-hire carriers are finding ways to balance operating costs and time at home that are allowing them to stay out of the red.

“There’s no doubt about it. The need to attract drivers and buy more expensive trucks due to the new emission control technology is going to divert capital normally used in other parts of the trucking business,” Finkbiner told Fleet Owner Magazine. He also said more rules restricting the amount of driving allowed in a day, an aging driver population and more highway congestion are other factors making it hard for truckload fleets. But continued strong economic growth coupled with capacity shortages, which are due in part to the lack of drivers, have propped up profitability, according to Fleet Owner Magazine.

“That means the pricing environment is going to stay strong – ‘core capacity’ is frozen solid to a degree because fleets can’t expand and I expect it to get tighter in both the truckload and rail markets,” said Finkbiner.

But John Bowe, president of the Americas for global transportation firm APL and its sister company APL Logistics, thinks the dated transportation infrastructure in the U.S. will be the biggest long-term problem.

“The U.S. economy has been transformed by unprecedented growth in containerized imports,” said Bowe. “Growth in the transportation infrastructure hasn’t kept pace. If we don’t fix this, supply chains will bog down, consumer prices will go up and the economy will suffer,” Bowe added.

Bowe contends that it won’t be long until current solutions are no longer valid. “We’re pushing too much cargo througha pipeline that is not growing fast enough. Eventually it will be overwhelmed,” said Bowe. “We need to act now to prevent gridlock.”

Amsoil Action News August 2010

Amsoil President Al “A.J.” Amatuzio

In the September 2007 issue of the Action News magazine I used this column to congratulate a Dealer for an achievement that had never been realized before. Michigan Dealer Dave Mann had become the first 6-Star Regency Platinum Direct Jobber in AMSOIL history. Today, congratulations are in order again. Dave has now become our first 7-Star Regency Platinum Direct Jobber.

For those who are unfamiliar with Dave’s background, he graduated from Western Michigan University in 1988 with a degree in automotive and mechanical engineering. Upon graduation, he accepted a job at Ford Motor Company as an engineer specializing primarily in powertrain and chassis systems. While at Ford, Dave became involved with Roush Racing, where he ultimately became familiar with AMSOIL products.

Lubrication, according to Dave, became his passion. After using AMSOIL products for several years, Dave became a Dealer in 1999. He was still working long hours at Ford, but managed to find enough time to get his AMSOIL business off the ground. It wasn’t easy at first, Dave admits, and his commission checks were slow to grow.

Dave persisted and in 2003 quit his job at Ford and launched himself full-time into his AMSOIL business. His initial focus, which he maintains today, was on the Internet. It allowed him to capitalize on his extensive automotive and powersports background. He began connecting with individuals who shared similar interests. Dave never looked back.

As impressive as Dave’s AMSOIL career has been, however, he will be the first to admit that it hasn’t come easy. Hard work, Dave will attest, has been the foundation of his success.

Dave Mann’s position as our lone 7-Star Regency Platinum Direct Jobber won’t last long, however. In next month’s issue of the Action News, Direct Jobbers Bill and Donna Durand from Superior, Wisconsin will join Dave on the extremely short list of 7-Star Directs.

I first met Bill in 1974 while I was still serving as the squadron commander at the Duluth, Minnesota Air Base. Bill was a major, about to finish off 20 years of service. Because of his aviation experience, he was familiar with synthetic lubrication and took immediate interest in the opportunity to become an AMSOIL Dealer. He was so anxious, in fact, that he wanted to retire from the military and dive full-time into his Dealership. I suggested quite firmly that he finish his 20 years and earn his military pension. There would be plenty of time, I told him, to grow his business with AMSOIL. Bill finished out his 20 years, earned his pension and became full-time AMSOIL in 1976. He and Donna took off from there, and to this day I can’t break him of the habit of calling me “Colonel.”

Congratulations are also in order for Regency Platinum Direct Jobbers David and Carol Bell. The Texas couple has achieved the 5-star level, joining only Minnesota Direct Jobbers Ray and Arlene Schmit at that plateau.

Both David and Carol enjoyed successful careers prior to becoming AMSOIL Dealers. For 25 years David worked for an engineering and construction company out of Houston that built gasoline and petrochemical facilities. He worked himself up through the ranks and ultimately earned the title of Design Coordinator- Material Control.

Carol was a high school Latin teacher for 24 years. She maintains that her teaching career prepared her for her AMSOIL career, in that she spent a great deal of time “selling” Latin to her students. Carol was instrumental in building large Latin programs from virtually the ground up in both Tyler and Austin, Texas.

Prior to selecting AMSOIL, David and Carol randomly called Dealers throughout the country to determine the company’s “integrity and business practices.”

They liked what they heard and were ultimately drawn to AMSOIL by our Commercial and Retail-on-the-Shelf Programs. David and Carol became Dealers in 1988. While I certainly suspect that the Direct Jobbers we have included here will move on to even greater success, I suspect also that we have not yet scratched the surface. Congratulations Dave Mann, Bill and Donna Durand, and David and Carol Bell. And congratulations in advance to the many Dealers who will one day guide their businesses to similar levels of achievement. There is no reason why each and every AMSOIL Dealer can’t make that happen.

New Standards Put Pressure on Lubes

As the Environmental Protection Agency continues to tighten its pollution standards for diesel truck engines, manufacturers also are increasing the demands they place on oil companies for lubricants that can protect sophisticated vehicle power plants that run at higher temperatures.

At about the same time as cooled exhaust gas recirculation and other technologies were placed in October 2002 engines, the major manufacturers were looking to install different new systems in their 2007 model-year products in order to comply with a new tier of regulations.

Industry executives predicted the costs to of the new systems would be prohibitive.

When the stricter EPA rules kick in, more demands will be placed on lube oils, according to lubricant manufacturers and the organizations that set the standards and govern their use.

Adding to the pressure to improve lubricants are new fuel economy standards unveiled this spring for light trucks. The standards will save 10.7 billion gallons of fuel and include the largest sport utility vehicles for the first time, according to the Department of Transportation (DOT). The new fuel economy standards strengthen the miles-pergallon target for light trucks, boosting it from 21.6 to 24 mpg by 2011, the highest level ever for the program, according to the DOT.

Transportation Secretary Norman Mineta announced the updated regulations. Mineta said more was being asked of automakers because they have to factor in 240,000 of the least efficient SUVs for the first time. The new standards also set individual mpg goals for all passenger trucks sold in the United States, requiring manufacturers to install fuel-saving technology on all passenger trucks.

The changes mark the second time the Bush administration has raised mileage standards for light trucks and the first complete reform of the corporate average fuel economy, or CAFE, program for pickup trucks, SUVs and minivans, according to the DOT.

The new standards mean that some light trucks will have to meet a fuel economy target of 28.4 mpg, higher than the current standard for passenger cars.

Truck Sales White Hot During Pre-buy

Class 8 truck sales in the U.S. totaled 25,895 in March, according to reports. This number is indicative of a white-hot sales environment as carriers buy to both expand capacity and horde ’06 models before the more-expensive ’07 models are rolled out.

The number represents a 26.2 percent increase over that of March 2005 (20,518) and a 26.9 percent rise over revised February 2006 totals (20,399).

Some heavy truck manufacturers report Class 8s will cost more to buy and to operate as they meet the new EPA emissions controls.

The ’07 model Class 8s are mandated by EPA to be equipped with emissions reduction technology, which brings a higher initial cost for the equipment, according to manufacturers.

A spokesman for GM recently told an industry conference medium-duty trucks also will cost more to own and operate. A Class 7, 2007 emissions-compliant truck could cost between $3,500 and $5,000 more to buy because of the additional emission-control components, according to the spokesman.

Higher operating costs will be driven by the higher costs for ultra-low-sulfur diesel fuel and the new engine oil formula, the possibility of slightly lower fuel economy and higher maintenance costs for cleaning the emission controlling components, manufacturers report.

Class 8 retail sales are expected to remain high, with some months in the second half of 2006 to even exceed an annual rate of 300,000 as pre-buy sales heat up.

AMSOIL Heavy Duty Synthetic Diesel Oils

• Formulated to meet industry standards
• Increase fuel efficiency
• Control soot thickening, oxidation and wear

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Amsoil Action News April 2001

A couple of months ago, on one of my frequent visits to our manufacturing plant and distribution center, I saw a beautiful new Ford Excursion with a large trailer in our parking lot. Both were decorated with AMSOIL decals. I was curious who they belonged to, so I went into the distribution center and asked. A gentleman spoke up and said it was his truck, and jokingly asked if I had hit it or something. Playing along, I said that yes indeed, I had hit it with my Suburban.

As it turned out, the Excursion belonged to Direct Jobber Lynn Pabst, from Hammond, Wisconsin. With him was one of his downline Dealers, Steven Hanson, from Rosemount, Minnesota. We struck up a conversation, and while we talked I took them on a tour of our plant.

I was pleased to hear that Lynn enjoyed the “President’s Message” every month in Action News. He specifically noted that he learned a lot about water and water filtration in a previous message. He said he didn’t realize how important filtering the water we drink really is.

Lynn said business was good and that he was selling so much AMSOIL 2-Cycle Oil, it was almost unbelievable. That was music to my ears. Our 2-Cycle Oils have been some of our hottest selling products for years. No other two-cycle oil can touch them when it comes to top performance and protection. Many of our Midwestern and Northern Dealers do a brisk business in two-cycle oils this time of year because the sport of snowmobiling is so popular. Our entry into snowobile racing the last few years has helped promote our products, as well.

As we passed through the aisles stacked with inventory, we stopped and discussed our motor oil cartons with the wear comparison chart on them. I pointed out that the Mobil Tri-Synthetic motor oil fared the worst of the oils tested. Lynn stated that these comparisons on our containers were extremely important in helping him sell. He wanted to see more of that kind of information. I certainly understood exactly what he was saying.

When you can clearly demonstrate that your products are superior, you’ve got to “toot your own horn.” That’s how to market superior products. Now I’m certainly no marketing expert and don’t claim to be, but common sense dictates to me that when your product is better than the next guy’s, you’ve got to shout it from the highest hill, so to speak. You’ve got to make consumers aware. If you don’t, nobody will!

When I started this company, our first oil cans had comparisons on them. Then someone convinced me to take them off our cans for a few years and it hurt our sales. I learned my lesson and started using them again. Since then, I have been told by many Dealers that these comparisons help them sell.

I have mentioned how important it is for all of us to toot our horns in some of my past messages. As it applies to our Dealers, that means putting AMSOIL decals on our vehicles like Lynn does, showing the AMSOIL colors by wearing AMSOIL jackets, caps, and other promotional clothing items, using yard signs, etc. You never know how just wearing an AMSOIL jacket can help your business.

I can’t tell you the number of stories I have heard from both AMSOIL Dealers and our staff about people approaching them because they had a cap or jacket with the AMSOIL logo on them. For instance, our General Manager and Executive Vice President Dean Alexander talked to one of our major suppliers, Jeffrey Zudock, who told him he met someone wearing an AMSOIL jacket at a mall in Madison, Wisconsin some time back. Jeff didn’t tell the Dealer how he was familiar with AMSOIL, but he did strike up a conversation while his wife went shopping. The two spent forty-five minutes chatting about synthetic oils.

The person in the AMSOIL jacket turned out to be Direct Jobber, Bill McCarthy, from Madison, Wisconsin. Jeff Zudock is very knowledgeable about synthetic lubricants. That’s his business. So when he says he’s impressed with someone trying to sell him synthetic oil, you know whoever he’s talking about must know his stuff. Jeff was very complimentary of Bill and thoroughly enjoyed their visit. He asked Dean how we find such intelligent, loyal Dealers. Jeff also said Bill made every effort to sign him as a Dealer. That’s exactly what he should do whenever he finds someone interested in the products. While Bill McCarthy didn’t wind up with a new Dealer from this encounter, he did make a new friend.

When you wear the AMSOIL colors, there’s no telling who you’ll meet or how much oil you’ll sell because of it. But if you don’t toot your own horn a little bit you’ll never know. The March issue of Action News contained our new clothing catalog. In it are a number of ways to advertise the fact you are a Dealer. If you haven’t already done so, look it over. You might find something in it that will help promote your business . . . or just help you meet some interesting new people!

Download Amsoil Action News April 2001 Issue