Trade- Negotiating

The possibility of KGC lowering the number of pieces ed by Ashbury will be explored at this point should the latter not be convinced Depending on the deal arrived at under Objective I above , provided it is equivalent to an agreement higher than the bottom line , KGC will offer to bring down the threshold for the first provided Ashbury allows for 40 off-site production

Should (2 ) not produce an agreement , KGC will offer to do 30 off-site but with no changes in the Objective I agreement , OR agree to only 20 off-site

manufacturing but with a 5 rise in the list price

Bottom line : 100 on-site production , but with 10 increase in price for SG200 and SG500

Objective III : Optimize Sales of SG1000 at 40 of

The chief strategy to be used in seeking to achieve this objective will be to convince Ashbury that being a top-end retailer , should concentrate on the finest quality of guitars as their main products and only offer the other models as alternatives to those who really cannot afford the SG1000 . The chief contention anticipated from Ashbury will be that the SG1000 is expensive , and might not sell in large numbers . Additionally it might need exemplary marketing to push sales . KGC will offer the following incentives in succession

KGC will create more attractive packaging for the SG1000 that will give it the image of a professional piece of equipment for the most avid of musicians . To be included in the package will be professional guitar accessories , including replacements for vital parts and accessories . All these will be branded appropriately

KGC will offer an additional 15 discount on all purchases of the SG1000 , provided two thirds of this amount is channeled directly toward marketing the SG1000 . An agreement is to be ironed out on the optimal...