NW Roanoke Shops Sign -- Status Report Update

[NW Modeling List]

Ken Miller,

Further to Miller Engineering options for illuminated "N&W Roanoke Shops" HO-scale signs:

1.	With respect to commissioning a new sign (i.e., "steam-era" version), Miller Engineering charges a $350 design fee for which the Society would be are allowed one revision.  If that is approved, samples would be $1,000 each.  If the order is placed, both those fees would be credited back to the production order.  The minimum production run is 500 kits. Pricing would be $14-$18 depending on the size and amount of the illuminated area.  So, we’re talking $7,000 (to perhaps $9,000).  [Roger Huber (Deer Creek Locomotive Works), I hope that answers your question.]   

The finished sign would normally retail for about $36-$43 (based on Miller’s retail price and the range of discounted hobby shop pricing for the diesel-era sign I found on line).  That’s a lot of signs to have to resell, especially in potential competition with other resellers, unless Miller would agree not to sell to third parties.  I posed that question to my contact at Miller Engineering, and he has responded as follows, 

"If the N&W Historical Society wants to take the full production run than [sic] I am willing to give the rights to to them and I would not sell the sign, I would just refer customers that where looking for it over to them, you have my word on this.”

Actually, the Society would have more than his “word”.  He knows that I am effectively acting as the Society’s agent for purposes of making this inquiry.  That promise is “in writing” (despite his simultaneous over- and under-use of commas) even though electronic (today’s courts treat email and similar electronic communications as “writings”).  And, the Society’s reliance on that promise would constitute “consideration.”  All of which is to say, were the Society to go ahead and contract for the full production run (min. 500), then the promise would be a legally enforceable contractual obligation.  [Not intended as legal advice; I am retired and not licensed in Virginia.  The Society should confirm the foregoing by consulting with its own attorney.]

2.    For the diesel-era sign that Miller is “considering" bringing out again this summer (apparently that is not a done deal), they will give the Society their “distributor" discount of 55%, with a minimum order of $1,000.  Assuming Miller’s $43 retail pricing remains unchanged, with a 55% discount, that would work out to a purchase of about 42 signs.  The Society could probably resell those fairly quickly on a pre-order basis for $35 (cheaper than likely to be available from hobby shops) and turn a nice ($470) profit, or sell for $30 to Members and still turn a $260 profit.  Of course, if the Society has the exclusive rights to the steam-era sign, being able also to offer at least a small number of the diesel-era signs might be a nice option.  On the other hand, if the Society contracts for the exclusive rights to the steam-era sign, Miller might decide not to reissue the diesel era sign at all.  

3.   Nothing additional to report on the non-illuminated version.

Bill Demarest
N&W Steam Only

P.S.  Through the generosity of another member to these list-serves, I have located a working version of the diesel-era sign! But, even so, if the Society does contract for a production run of the steam-era sign, I’ll be at the head of the line to buy one for my all-steam N&W layout!!
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