Copy and paste of The Pinball Company's response to someone else's cost estimate as people questioning the high price.
"Here is my guesstimate on Pinball Companies new contract build investment...
Cost to build and develop 300 units from Spooky=$1,000,000 or $ 3333.00 per unit
Licensing fee for Jetsons (thirty year old franchise with little relevance in today's society) $50,000-$70,000K-Mabye "
"You are not far off. Let me help you...
Cost to build is actually going to be close to $3800 per machine after adding toys and finishing touches. The license cost for 300 machines is in your range (good guess). Assuming an average selling price (1/2 at wholesale and 1/2 at retail) of $5875 and that 1/2 of the customers will pay by credit card, that takes another $27,000 in credit card fees. We also have advertising costs and warranty costs. The total return of the project is a roughly $400,000 over 4 years if it is successful. Keep in mind, we have been paying out money for R&D and license fees for 2 years already.
If you want to put up $500,000 of your money to build a pinball machine and sell it with no profit, that's your choice.
If you want to buy the machine but think the price is too high, call us to work out a trade or cash price like many other Pinsiders do.
As for why 300 machines? It is all that we can reasonably get built before the license expires. By then, they will all be sold to happy buyers.
Calling someone greedy suggests they are being selfish with their choices and that's just rude. I have a tough skin and like who I am as a person, so it really doesn't bother me that you think I'm greedy. I did this project for all the families that call me wanting something for the kids to play and their feedback means the most to me. I would love to sell the machine for much less, but it wasn't in the cards.
NIC"
