ECONOMY

Many dealers have expressed a concern about the economy and its effect on UTV sales. The present economy is actually one of the most significant driving factors in the success of the RUESCH brand. The consumer is looking for the best value for their dollar. Over the past decade, statistics have shown that the consumer is less likely to pay top dollar for name brands in any industry simply because of a name. They have become more frugal and through experience, the consumer base has learned that in most cases, less known brands are as good if not better than the names they are used to. Consequently consumers are decisively reallocating dollars that would have gone for a logo for added value gained by extra features and accessories. This is evidenced by the success and gaining market share of companies like KIA motor company, ING Banking, and many more that within just a couple years have gone from no-name companies to companies that are stealing dangerous market share

From the competition. The RUESCH XRL is a machine of choice for those who otherwise would have been buying a bare bones 11,000 Rhino but rather opt for an eye catching machine that has over ,10.000 in extras for about the same price.

PRICE POINT

Most consumers, once they are demonstrated the quality of the machine and learn that the warranty of RUESCH is the same they would get anywhere, are easily sold on RUESCH as an upcoming company that offers double the value in extras and style at a price that is affordable. The extra value is just too much for most to dismiss. Put a $12,000 RUESCH XRL next to a stripped Yamaha or Polaris of about the same price and the RUESCH will be the go to machine every time.

HIGHER PROFITS

One of the surprising factors we have experienced with dealers of all other OEM's is that most are very disenfranchised. There are a number of reasons they will give once they begin talking, but the most significant is the margins they are left to deal with. While most are realizing profits under $1000 through the sale of their product, RUESCH machines are yielding dealers profits nearly three times this amount. In a slow market, this is astounding but more so necessary for the profitability of their business. The investment required to own and operate a dealership is significant compared to the low return they are making off the sale of other top OEM's.

VEHICLE ESTHETICS

This is where RUESCH truly towers over the competition. Rather that sell a base machine that is stripped and plane to almost anyone who looks at it, RUESCH is selling the customer a machine that looks good. An appealing design with attractive paint combinations really draws the consumer's attention. We offer everything the consumer wants but would have to pay for after the fact as a standard feature. By doing so we are able to significantly reduce the cost and pass the saving on to the dealer and consumer. Accessorizing a new machine is expensive when reaching out to the aftermarket. Our machines offer the eye candy that draws the consumer in and virtually sells itself. Half the battle is won before the salesman even says hello. They have to want it.

QUALITY DESIGN

RUESCH is building the cheapest machine coming out of China, but rather the most expensive. Under the direction of an American/German group of engineers and designers, the RUESCH machine is designed and managed by professionals in every aspect of off road performance. The manufacturing of our vehicles is not just overseen by RUESCH but rather the entire management of the factory is performed by RUESCH executives who live in China and work to guarantee the quality and production necessary to support our dealer network.

UNIQUE BUSINESS MODEL

Of everything RUESCH has to offer its dealers, it's the business model by which we operate that puts us above the rest. The major OEM's are inundated with layers upon layers of unnecessary overhead, middle management, and procedures that limit the profitability of their product at the dealer level. We've designed and efficient smart company that is flexible. A company that is open to ideas, changes and improvements that come from our network of professionals. Improvements & Changes are implemented in days rather than years. It takes time to turn a diesel around but a Ferrari can be turned on the dime. Our company has been designed to perform as a Ferrari. Decisive and fast. In a market that is changing as fast as this one, the ability to make decisions and implement them quick makes all the difference in the world.

NEW IDEAS

Much like success companies like ING banking, SW Airlines, and others who started against a myriad of established competition, RUESCH is not following but leading. We are not as concerned with how it's always been done as we are how it should be done. The CEO of SW Airlines refused to hire its executive team out of the experience pool those who had been working in the airline industry because they were not interested in the deep rooted routines that were anchors to their new business approach. Instead they looked outside the box for those with fresh ideas and the confidence to build a company on a different set of rules. They refused to hire 70% of their executive team if they had ever worked in the Airline industry.

The base business model of RUESCH has been outlined in a similar manner. We first found professionals in every aspect off road motor sports and then began looking at the business model of every OEM out there. We looked at the good and bad of each and began working on a new model. A better model.

MANUFACTURING

We first began by discerning the best place for manufacturing. We discovered that most of the components for other machines were manufactured in China and shipped to Japan for assembly which was ridiculous when Chinas greatest commodity is their labor force so we chose China for manufacturing and assembly. Others predominantly buy everything from China but ship to Japan for the false impression of stating "made in Japan" This eliminated unnecessary shipping costs and reduced the cost of assembly significantly. We also Found that Polaris and Yamaha were both already manufacturing complete vehicles in China out of desperation to be competitive which evidenced the inevitable. China was the future for everyone regardless of who they were.

INVESTED REGIONAL PARTNERS

We learned that most dealers were unsatisfied with the service they were receiving from their local OEM's through an employment based regional management. To most of these regional managers, it was just a job which lacked enough interest or opportunity to truly service the dealers who had invested in their companies products. We knew that our regional representation was going to be key to the success of our dealers but if we were going to attract the best, we needed independent minded individuals who were invested and truly working for the success of their dealers. The more successful our dealers are, the more successful the company. For this reason we determined not to trust the fate of both to an unmotivated management team but rather share in the profits with independently owned Mater Dealers who are able to profit off the success and profitability of the dealers within their region. Each of our master dealers are equipped with demonstration vehicles and trailers to show our product all across America and Canada in efficient manner without waiting for a trade show or other event. Time is of the issue. When we have a new product, we don't have to wait months for a show like others but rather have the ability to put our product at the front door of every dealer in America within 30 days of it's release. RUESCH does not make dealers simply read about it, we let them experience it from the comfort and convenience of their business.

OUTSIDE EXPENSES

We sought the advice of flooring specialists, finance companies and banks only to discover that in most cases the money lost through these outside identities was unnecessary which opened the door to even greater profitability of our regional Master Dealers. By warehousing regionally, they are able to provide product quicker at the dealer level and increase the profitability of their own business by buying in larger quantities and distributing locally on an as needed basis. This reduced tied up capital on the Dealer's part and insures quicker availability of product. Because our Master Dealers are buying in quantity, they were able to greatly reduce shipping costs that dealers were experiencing thus making them more profitable.

By eliminating costs that were going out to third party interests like shipping, warehousing and financing, we were able to reduce dealer expenses and create opportunity for our Master Dealers. If anyone is going to be making money off the RUESCH brand, we wanted it to be our people.

AREA PROTECTION

The top OEM's do a good job of protecting their dealers, but all the rest fall short in this area. The primary reason is that they have not made the investment in the design and development of their own product. Companies like Roketa, Tank, Qlink and others are not manufactures but rather wholesalers of other's product. There are 14 companies in China that make UTV's and are doing anyting to sell into the American market. Consequently they have simply taken a machine that is available to any wholesaler or dealer and put their name on it. The result is that they have no contole over the vehicle and they can not offer protection because even if they will not sell to the dealer across the street, the manufacturer will. Worse yet, these manufacturers will sell sample units to anyone who calls professing to be a dealer.

PRICE PROTECTION

The worse part of not having control over a product is the inability to protect the price point. Simply stated, there are a dozen wholesalers all trying to sell the same machines with no difference other than the color and the name. Each wholesaler is offering a better price to win the business but in the end the price is ruined through the process and eventually, the dealers who thought it was a good deal find that within a year, the street price for the product is so low that they can no longer profit off the sale. The China factories, in an effort to make a sale end up cannibalizing their line and before you know it these vehicles are found on eBay for a few hundred over cost. Most of these companies are buying from factories like Hisun, TNS, Feiya, and others who have no rules other than the ability to pay. In this sense, China is it's worst enemy. The only factories that will last are those that realize the need to partner with American interests that have more to offer than one container of product. RUESCH has control over their product because they developed it and have the exclusive ability to market the product. RUESCH dealers are prohibited from price undercutting which enables all dealers to sell without the risk of loosing a sale to an eBay ad or a gas station trying to sell a few units from the curb. Our 26 page dealer contract is designed to establish the terms and conditions by which all dealers are able to work together without the threat of loosing business. If anything, RUESCH turns down more dealers wanting to carry their product than they sign. A product is only as good as the weakest dealers because in the end, it's the bad dealers that ruin the good name of any product.

MARKETING

RUESCH is just one of many companies owned by our group. Look around and you will find that the backbone to the group's success in a variety of fields and industries is their market research company Ruesch Media Group. This is a company that provides industry research and market strategies for businesses across the US. The key to most businesses is its ability to generate the exposure needed to successfully drive revenue and brand awareness or their products and services. With such clients as Disney, US Military, Quixtar, Howard Hughes and Dell Webb, RUESCH companies have earned the respect of others but is also able to apply the same business practices in the setup, marketing and management of RUESCH Motor Company.

SIGNAGE AND BRANDING

Branding is a very important part for establishing consumer confidence and awareness of quality products. Unless you're a dealer for one of the top 5 OEM's you are on your own for these type of business tools. We understand what it takes to establish a name brand. The brochures, flyers, in-store signage, Exterior signage, pennant streamers, shirts, hats, vehicle signage, trailer wraps, and on and on. To design and produce this type of branding strength takes hundreds of thousands but is invaluable to the dealers selling your product. RUESCH dealers enjoy it all for half the cost to produce the same in any quantity they need. We've done all the work and offer everything a dealer wants for a fraction what they would spend on their own. We also offer high res layered files for those wanting to customize the message for their individual shops or printing locally. We offer it all, but if our dealers want to do anything on their own we give them the files.

MEDIA EXPOSURE

RUESCH enjoys tremendous free and paid exposure by off-road TV, print and exhibition medias. We make our vehicles available for independent testing which has always been positive and more than helpful in the promotion of our company and machines. RUESCH has a policy of transparent review and testing. The media is always interested in a company that shakes things up. There are a lot of people who want to know more about RUESCH from an independent perspective. We don't babysit the review, we give them a machine, say goodbye and leave them alone to do what they need to do. We have never been afraid or embarrassed about our performance.

AFTER-MARKET PARTNERSHIPS

After the premier of RUESCH's line last year at the Indianapolis Dealer Expo we were surprised by the response we received by the industry. Dealers, accessory companies, engine companies and everyone who had something to do with off road motor sports inundated us with interest and approval. As a result RUESCH began negotiations with this industries top manufactures of aftermarket performance parts. Work began immediately as companies began making requests to align themselves with our machines. Over the next 12 months you will see RUESCH production vehicles coming equipped with name brand Shocks, Axles, Seats, Tires, Wheels, Exhaust Systems, as well as many other accessories. In essence we have begun work on a Dream Machine. Consumers will be blown away by the strong brand we have developed as we partner with the industries best and provide a product that is name brand right out of the box.

As we negotiate with these companies, we will also be able to offer our Dealers pricing for the same equipment at prices that will give their companies a distinct advantage over local competition. Most dealers have the strength of their dealership alone to negotiate prices with aftermarket companies but RUESCH has the strength of it's entire dealer network to negotiate and the dealers that have aligned themselves with us will be the beneficiaries of this buying strength.

PARTS AVAILABILITY

Another way off brand companies are hurting themselves is by making participation with their company so easy that there is no possibility for after the sale service, IF the dealers do not have a professional service department, Parts department and competent sales staff, the product is going to get a bad name regardless of it's quality. When a customer has to wait one to two months for parts they become disgruntled and often share their experience online which ruins it for all the legitimate companies selling the same product. The other problem is that because the China factories do not have requirements for available spare parts, most the short sighted companies trying to wholesale their product do not care to make the investment necessary to offer 3 day replacement parts. RUESCH understands the need to support their dealers and customers with the parts and service necessary to maintain a good reputation that will sustain them years down the road. We do not have short term vision. It takes much more than the ability to wholesale a machine to call your self a motor company. RUESCH is a company that is going after the top spot and will never be content to run their business like the majority. In this respect, you will find RUESCH as professional as the top OEM's.

WARRANTY

There is little to be said about warranty. We offer the same warranty protection or the top 5 OEM's. You can not sell a vehicle that you will not stand behind. Our warranty relationship with our dealers is unique however as we wish to improve on the pre-sale assembly and avoid fraudulent warranty claims. We have several Mechanics that have been doing warranty work for the top dealers from all across the nation on our executive board. It is their opinion that 70% of all warranty issues are the result of poor dealer assembly and the lack of dealer procedures to insure that their vehicles are assembled correctly and ready for the floor.

Consequently, RUESCH warranties all parts, and our Dealers warranty all labor. This encourages the Dealer to do a better job. Another issue many dealers of top OEM's complained about was the hold backs at the time of sale. Most hold back about $300 and the dealer gets this money less warranty expenses. The OEM's have access to this money all year long and earn interest on it rather than the dealers. Any time the issue of dealer warranty of labor arises, we have offered to be liable for the labor but also lowering their machine profits by $300.00 and rebating them at the end of the year less claims. So far, everyone saw the value of money in hand rather than waiting. This is just another way we have determined to benefit the dealers over anyone else.

Summation:

As you can see, it's not the way things have been done that's important but the way they should be done. RUESCH is open to new and sometimes contested ideas that will break the traditions that are robbing dealers of profits and reputation. There is a lot to be considered before making the decision to carry a new line or product. Many still are unaware of the questions to ask. We hope the information we have provided will give you a better idea of the areas RUESCH is leading the industry. We hope we have demonstrated that we are a different kind of company. Welcome to RUESCH.