Will one Muse Eat the Other?

[gabster]

Hi dear Folks!

Just registered (half way through Tim's book), very excited about future etc. etc.

Wasn't sure where to post this introductory post, so if this is the wrong forum please excuse me :-)

I am a US naturalized citizen (born in Romania, Europe), moved here in Feb 2000, currently in high-end guitar tube amp manufacturing (www.gabtone.com ), goes well, etc. etc.

The thing is, currently (and parallel with my guitar amp biz) I am setting up a guitar amp KITS biz that will be entirely manufactured/shipped from Malayisia all over the world, and shooting for automation. Pretty much as Tim mentioned Doug's biz over at prosoundeffects.com

The big question - and I am VERY curious of your opinions - how will this outsourced-non US-made biz will affect my high-end made in the US biz (the Gabtone)?

I am somewhat concerned of hurting my current manufacturing tube amp muse.

Anyway - thanks ahead! Glad to be here!

Gabi (Gabrièl)

[laniers]

My opinion is you brand them differently and target two separate segments of the market. It's like Cadillac and Chevrolet (both GM companies) selling to different audiences, it helps to be diversified. Keep us posted.

[gabster]

Thanks laniers!

That's my thought as well... it makes sense.

Yep - I'll be back with news.

Thanks !
gabi.

[Grayman]

I agree, I think you pretty much answered your question in your original post. You have a high end product with your amp manufacturing and then a lower end product with your kits.

Brand appropriately and target to different markets and hopefully you won't see any cannibilization. :eek:

[gabster]

"cannibalization" - hehehehe - I like the term.

Yeah - that's true - I would definitely like to keep the high-end muse since it is a labor of love for me (and it does make some good moolah as well), but I don't want to depend on it now. That is at one point I see no problem for people waiting at least a half of a year for their amps to be brewed, etc. etc.

But I am really obsessed with setting up this kits thing and cater to the DIY audience. I have a manufacturer-friend in Malayisia who would do this (actually we are already doing it in a sense, by me buying parts from him, etc.).

The question is what form of a corporation should I set up, "S-election", LLC, etc. etc. We were thinking of both being shareholders in this venture since I will be his exclusive US outlet - but not sure if a foreigner can be named as a shareholder in a US corporation... Am I complicating things?

Thanks for the inputs! Great to be here! This is sooper exciting!

Gabi.

[laniers]

I guess I'm greedy, but I would want to keep him as just a supplier and not a partner. Reason being that even though you have a great relationship now you never know what the future will bring. I'd be more inclined to offer incentive goals to help motivate him to meet delivery time, quality, cost, etc.

[gabster]

it makes sense, laniers. I sort of lean in that sort of setup also. And I am sure he'll be fine with that as well because other wise he'll be taxed twice (once in the US and once in Malaysia.

Good advice!!!

thanks!
gabi