The Kim Guitar Company (KGC) in Seoul, South Korea, makes electric guitars for Japanese manufacturers and distributors in Europe and the US.

A major US distributor, Ashbury Guitars, has contacted KGC about marketing a range of guitars under its own brand name for the Californian market

It is now early January. KGC has agreed to manufacture the guitars for Ashbury, even though it is a very busy time of the year for them. The two companies have had some initial correspondence by e-mail and now a face-to-face meeting is required.

Several points of the contract need to be negotiated. KGC’S owner, David Kim, has flown to San Francisco to meet Richard Grant

2. Information file: KGC

Model

SG 1000 SG 500SG 200

Quality

• To reduce costs of production, we want 40% of the order to be manufactured other Korean firms.

Quantity• we want Ashbury Guitars to place

a first other of at least 2,000 guitars. We need a large order to cover the costs of setting up the production lines.

Prices quoted to Ashbury

920550475

Estimated of production

510340290

List price (US$)

SG 1000SG 340SG 290

Delivery

30 June. If an earlier delivery is required, production costs will increase by 10% because of overtime payments to workers. Before 30 June, the factory will be fulfilling orders for other customers

Payment

My company policy is to offer new customers 3% off list price for a first order, and 5% for second and further orders.

Information file : Ashbury Guitars Model we want KGC to supply three model: Ashbury SG1000,SG500 and SG200. The SG1000 has some special additional feature . Quality we want KSG to produce all the guitars in their own factory. If they use other manufacturers for part of the order, the quality of the guitar may not be very good.Quantity we want to place the following first order: Model Quantity SG1000 400 SG500 1,200 SG200 200 We are sure that demand will be good for te SG1000. The cheaper guitars may sell well. However, there is strong competition in the lower price ranges

.Price KGC have quoted these price: SG1000 US$ 920 SG500 US$ 550 SG200 US$ 440All prices include transport costs to Pusan, Korea.Payment By bank transfer. We want to pay a deposit of 50% immediately, and the remaining 50% one month after receiving the goods.Delivery By 1 June. A later date will result in reduced sales. (Music festivals in California in May create demand). Discounts Although this is a first order, we hope to negotiate a discount of at least 6% off the quoted price. If we place other orders in the future, we hope to have a discount of 8%.Guarantee At least three years.

We have a number of strategies to prepare to meet Mr.

Richard Grant talk to convince bring electric guitars

product to California market.

The Kim guitar company, established in 1997, is a

specialized manufacture in electric guitars and

classic guitars and acoustic guitars and musical

instrument parts and accessories.

Ashbury musical instrument is a company dedicated

to the design and manufacturing of high quality

musical instruments and accessories at affordable.

First of all, we would like to briefly introduce the electric guitar. An electric guitar is a guitar that uses the principle of direct electromagnetic induction to convert vibrations of its metal strings into electric audio signals. Invented in 1931, the electric guitar became a necessity as jazz musicians sought to amplify their sound. Since then, the electric guitar has become the most important instrument in popular music. It has evolved into a stringed musical instrument that is capable of a multitude of sounds and styles. It served as a major component in the development of rock and roll and countless other genres of music.

Specification of SG1000-Body : Arched Maple top mahogany back  -Neck : Mahogany (set-in Neck)-Fingerboard : Ebony 22F (350R) -Bridge : SGB-IIIG-Pickup : "SGH-1SOB" (Alnico V) x2-Control : Front volume, Front tone (Bi-Sound SW), Rear volume, Rear tone(by Sound SW),3P selector SW -Scale (mm) : 628-Hardware : Gold-Finish : BS(Brown Sunburst) , RS(Red Sunburst) , BL(Black)- High quality Hard Case include(SGFC)

Specification of SG500:

•Later 1970's model. 2 x HB .. pretty "stock" set up. Maple topped, decorative headstock + fret markers. Mine is red. Set neck, MIJ. With original case. "Les Paul" type set-up. Nothing fancy: 2 x PU, 4 x controls. Pretty sure it is maple cap (not sure of base timber) and ebony board.

Specification of SG200:

• SG-200 offers a superior combination of electrical

and mechanical properties - properties such as dielectric

strength, flame resistance, arc and track resistance, high

and impact strength. These fiberglass-reinforced

polyester thermoset sheets will not melt under heat and

have excellent overall electrical properties.

• SG-200 electrical insulating laminates have

inherently good dielectrics. SG-200 has been

engineered to maximize the specific properties required

for a electric guitar.

Guitar probably appeared first in Egypt and Babylon from 1000 BC.

•California has 478 cities, which are mostly in large urban areas.

-As of 2000, the number of California from 5 years of age in English and Spanish at respectively 60.5% and 25.8%-The industry's largest states, including agriculture, aerospace, entertainment, light industry, and tourism-Southern California, one of the most eastern university in the world, there are many good songs that the choir competition in the large conference.

So electric guitar is a strong demand on this market of Californian, upcoming have music festival, with quantity 2,000 guitars will not have any problem to sell the stock during the music festival

-To reduce costs of production, we want 40% of the order to be manufactured by other Korean firms. -About transportation costs, we will be all prices include transport costs to Pusan, Korea.- delivery before 8th June

•About price for the SG1000, we couldn’t reduce price for product SG1000 •offer an additional 5% discount on all purchases of the

SG1000, and 7% for second and further orders. An agreement is to be ironed out on the optimal... hope Ashbury guitar will satisfied with our method.•About guarantee, we usually offer a guarantee of 5 years.