(Topic ID: 229353)

Another gofundme: The Pinball Company

By mnpinball

5 years ago


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  • Latest reply 5 years ago by Azmodeus
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    #42 5 years ago

    I think there is value in creating a national network of showrooms and regional technicians available for service calls, but based off the Jetsons I question their business choices and overall trajectory. Their biggest asset seems to be their domain name and SEO, which is a fickle thing. Who cares about facebook likes, you can buy likes and twitter followers for nothing.

    I also just question what the point is of this investment for the investor. It doesn't seem like you get much for investing, unless it's a substantial investment, and even then it's not much. I don't blame them for trying to pass the hat around to get a few easy bucks, but I would want assurance that they have more sources of investment than online panhandling.

    #43 5 years ago
    Quoted from Bryan_Kelly:

    It's not about selling pinball machines. It's about opening barcades around the US. The first one would be in Chicago. Listen to Nic's seminar at Expo. He explains most of it.

    "My goal is to have the Chicago office open by November. I believe we will sell between 100 and 200 pinball machines in Chicago next year. We can easily add over $1 million in sales by having a showroom in Chicago. At a minimum, we'll cover our costs of opening an office there and be able to provide a high level of service."

    That's not a barcade (which is good because a barcade is a worse investment than a retail showfloor IMO)

    #77 5 years ago
    Quoted from frolic:

    What's the profit on an $8k machine? $1k?
    So set up a brick and mortar, staff and supply it all from $125k? Yikes.

    Look at what they're selling and the prices. Some of their games have huge profit margins. Like 6.5k for Big Buck Hunter Pro, 7k for Champions Pub, their "high end restoration pins" is stuff like Indiana Jones for $17k.

    #85 5 years ago
    Quoted from adol75:

    They would have huge profit margins if they sold

    I've asked other places with price tags like that and they tell me that I'd be surprised what some people are willing to pay. It might sit for months, but it'll eventually sell. Someone will buy it that's not part of the hobby and assumes that the price and phrase "high end restoration" will mean that they won't have to worry about it breaking.

    It's the same reason why I think people are crazy to say that the LE/SLE Beatles games won't sellout for absurd prices.

    #90 5 years ago
    Quoted from rubberducks:

    Well it would be interesting to see how it'd do in a CBD type location in a big city like NYC or Chicago. I wouldn't be the one wanting to finance the experiment, though.
    It'd make more sense for Stern to have a showroom, as they could easily absorb the cost, and it'd get their product seen in locations with lots of people with lots of disposable income.

    No, that's a terrible business choice. Stern would then have to build a showroom, hire people to run the showroom, deal with helping their direct customers (more than they already do), and piss off a lot of distributors. All just to make a little bit more money on each sold machine. Not worth the headache for a company with revenue in the tens of millions.

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