2. 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

3. 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

4. 2. Information file: KGC
Model
SG 200
SG 1000 SG 500

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

6. 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.
List price Estimated of Prices quoted to
(US$) production Ashbury
SG 1000 510 920
SG 340 340 550
SG 290 290 475

7. Payment
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

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

11.  We have a number of strategies to prepare to meet Mr.
Richard Grant talk to convince bring electric guitars
product to California market.

12.  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.

13.  Ashbury musical instrument is a company dedicated
to the design and manufacturing of high quality
musical instruments and accessories at affordable.

14. 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.

15. 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)

16. 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.

17. 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.

18. Guitar probably appeared first in Egypt and Babylon
from 1000 BC.
• California has 478 cities, which are mostly in
large urban areas.

19. -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, entertainmen
t, 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.

20. 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

21. -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

22. • 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.