NW-Modeling-List Digest, Vol 170, Issue 2

Tue Jul 11 11:38:54 EDT 2017

Russ:

Thank you for providing some hard data to think about!

I'm curious about the numbers in your example.  $400 each times 1000 units yields revenues of $400,000, vs an investment of $300,000.  So I'm guessing that the packaging and shipping costs, plus Society advertising costs, plus "cost of money" would amount to $100,000-or roughly $100 per unit.  Do I have that right?

Is it the case that all custom product agreements entered into by the Society to date have been for diesels, rolling stock, and structure kits?

Did the Society have a good experience with BLI for the N&W hopper cars?  ...with Bowser for the VGN hopper cars?

Best,

Eric Bott

From: NW-Modeling-List [mailto:nw-modeling-list-bounces at nwhs.org] On Behalf Of NW Modeling List
Sent: Tuesday, July 11, 2017 07:09
To: NW Modeling List <nw-modeling-list at nwhs.org>
Subject: EXTERNAL: RE: NW-Modeling-List Digest, Vol 170, Issue 2

-D;

IF the NWHS would proceed with an agreement with BLI to produce a locomotive, and in this case a Class M, the Society would pay for all production costs, including over runs. The society's initial outlay would be in the range of ~$300K, to start. The society would need to sell atleast 1,000 pieces at $400.00 ea in order to provide a profit back on the initial investment, plus cover packaging and shipping costs to BLI for product inspection and then shipping to ROA for final shipment to the customer. Additionally, the contact with BLI may include their right to sell the model as well, under their brand name after a specified period of time, whether or not the society has sold their entire inventory by the end of the contract date.

While I don't know the exact particulars of what the contract would be with BLI, I am guessing that the Society didn't see a true benefit in executing a contract with BLI for an M Class loco.

In the past, the society has been successful in having custom runs produced of models that are already in production, such as the leased RF&P E-8'S and the leased ACL E-7'S, both of which were run through a contract with Proto 2000. Other successful projects have been completed with Bowser, Stewart and Intermountain.

Hope this helps.

Regards
Russ Goodwin
Oakwood, GA
Former NWHS Modelling Committee Chair

Happy Connecting. Sent from my Sprint Samsung Galaxy S(r) 5

-------- Original message --------
From: NW Modeling List <nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>>
Date: 7/11/17 06:48 (GMT-05:00)
To: NW Modeling List <nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>>
Subject: Re: NW-Modeling-List Digest, Vol 170, Issue 2

Hi,
Sorry if I am confused, is the reason you do not want to work with bli because you need to pay for production?  Could you explain what you meant of it was some other business reason?  That explanation included a bunch of caps lock letters which is the equivalent of yelling but was short on reasons.
-D

On Mon, Jul 10, 2017, 7:17 PM NW Modeling List <nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>> wrote:
We are not going to be talking to BLI ever. With that said the ones that I Dean Taylor have been talking to on my own (Alex) are talking are interested with that said.THE NORFOLK AND WESTERN HISTORICAL SOCIETY IS NOT GOING TO PAY FOR PRODUCTION. So it may be awhile we need to so there is a market and that we have been lacking in. DEAN TAYLOR at NWHS

Sent from my U.S. Cellular(r) Smartphone

-------- Original message --------
From: NW Modeling List <nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>>
Date: 7/10/17 2:30 PM (GMT-05:00)
To: nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>
Subject: Re: NW-Modeling-List Digest, Vol 170, Issue 2

who are the other manufactures being prodded to do some N&W engines like
the M etc?

I would not want to contact BLI till there's enough back support froom
dealers, modelers, but it looks BLI is up to the task.

Usually if you can make a model, it can find a buyer eventually.

-Lynn.

On 7/10/2017 1:36 AM, nw-modeling-list-request at nwhs.org<mailto:nw-modeling-list-request at nwhs.org> wrote:
> Message: 1
> Date: Sat, 8 Jul 2017 20:38:47 -0400
> From: NW Modeling List <nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>>
> To: nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org>
> Subject: Re: BLI limited exclusive run program
> Message-ID: <mailman.653.1499605710.324.nw-modeling-list at nwhs.org<mailto:mailman.653.1499605710.324.nw-modeling-list at nwhs.org>>
> Content-Type: text/plain; charset="us-ascii"
>
> If they can do a Class M, then they can do a Virginian PA as well. I'm good
>  for one of each.
>
> Greg Harrod
> ====================================
>
>
> In a message dated 07/08/2017 5:43:42 P.M. Eastern Daylight Time,
> nw-modeling-list at nwhs.org<mailto:nw-modeling-list at nwhs.org> writes:
>
> Hi,
>
> I just read in MRC that BLI is doing a program to run exclusive
> locomotives with groups.
>
>
> !?!?!? Can we do a Class M !?!?
>
>
> David
>
>

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