Ch11 Article 2 - Guitar maker revives no-frills act from'30s Company introduces simple model to sell for less than $1,000 By Timothy Aeppel 901

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Page 1 of 2 2009 Factiva, Inc. All rights reserved. Guitar maker revives no-frills act from '30s --- Company introduces simple model to sell for less than $1,000 By Timothy Aeppel 901 words 7 July 2009 The Wall Street Journal Europe WSJE 29 English NAZARETH, Pa. -- At a bustling factory on the outskirts of this eastern Pennsylvania town, one of the world's oldest guitar makers is using a Depression-era strategy to keep production flowing and avert layoffs. simplicity. It lacks inlay, as did the company's stripped-down 1930s model, and is expected to sell for less than $1,000, breaking a key price point and far less than its $100,000 limited-edition guitars made of Brazilian rosewood. More popular Martins generally sell for $2,000 to $3,000. Initial reaction is promising. The company, which had sales of $93 million last year, introduced the 1 Series in April and promptly sold out its first year's output of 8,000 guitars. "We needed something so we wouldn't have to start laying people off," says Chris Martin, the company's chief executive and sixth generation of his family to lead the closely held company, which was founded in 1833 in New York City. Martin employs about 575 workers, who make 52,000 guitars a year, at the plant
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This note was uploaded on 01/26/2011 for the course MKT 337h taught by Professor Staff during the Spring '08 term at University of Texas at Austin.

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Ch11 Article 2 - Guitar maker revives no-frills act from'30s Company introduces simple model to sell for less than $1,000 By Timothy Aeppel 901

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