Dialed In Limited Edition - Jersey Jack Pinball

(Topic ID: 171092)

Dialed In Limited Edition - Jersey Jack Pinball


By PinballSTAR

2 years ago



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  • 320 posts
  • 133 Pinsiders participating
  • Latest reply 2 years ago by Nighthawk128
  • Topic is favorited by 7 Pinsiders

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#242 2 years ago

The only issue for me is the price tag...$9000 seems a bit high but I guess JJP is testing the market and that is within any businesses right to do so. I am sure it cost less than $6300 BOM per machine to manufacture using the average 30% mark-up rate to = a $9000 price tag. I suspect JJP may be going for a keystone rate of 50% mark up and attempting to support or portray a "Mercedes" of pinball manufacture image to justify the price. The market will surely support it to a certain degree but is it necessary for other than reasons of greed vs need? I own a small business and manufacture a product that has 1 dominating competitor with their price of $1000.00 per device. I engineered my device to have more features and better performance and I comfortably priced it at about 58% cheaper than the major producer. This is my 3rd growing year in business and I have more than enough customers who almost always reference the competitors price & performance to mine. Could I charge more??? Of course but I'm going for that price that causes the instant decision to purchase from those familiar with the market. I make excellent profits and consistently have a waiting list.

Every business operates in 1 of 3 modes.

1)You can price high, stock low and shoot for big profits on every sale at the risk of limiting your potential customer base, or another company under pricing you with comparable products. (Limited Buyer)
2)Price medium, stock medium, balanced profits and cash flow. (Average Buyer)
3)Price low, stock high, operate at a high volume output. (All Buyers) This mode can have very high profits if managed correctly. Much better production discounts due to buying supplies in greater quantities. Often dominates markets and can provide an awesome cash flow which can often be more important than profit depending on your business structure!

There is nothing that prevents a large company from offering lower than average prices and still make money other than their capability to produce the product and capitalism! It is up to the business owner to pick his method of operation and up to the market to support it...If it will

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