Gaithersburg, MD
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Quoted from 27dnast:No one is getting hurt, here. JJP is honoring pricing on already ordered games. New buyers have a choice to make, but it's not like walking away is taking food off the table.
Well said
2 weeks later
I agree with the sentiments shared that no one was hurt here. That's good. If JJP jacked pricing on existing orders...that would be bad business.
JJP is making a business decision to create profit and increase shareholder value. Whether that's by making an extra $1k per machine on new orders, or to lock in existing buyers because of perceived positive equity...who knows the real business case logic....
...But either way...generating returns is their job....to serve their investors with an ROI. Investors don't pump money into hobbies or passion projects unless they're doing philanthropy work. Right or wrong....just a fact.
It's our job as consumers to vote with our wallets. I did. I bought a game at the original pricing. At the time I placed the order, I perceived the value to be fair. Would I buy at the new price? Not sure...maybe. If the housing and stock markets weren't near all time highs...would my perception of value be different? Maybe.
In a rising market in a free market economy... where demand outpaces supply... prices will rise. As has been stated repeatedly.
New home builders do it all the time. And it can go both ways. Up or down...if the demand drops and supply rises....manufacturers can and will drop price and those who bought at the top will now compete on price with the builder/manufacturer when it's time to sell.
Good times....
Quoted from smalltownguy2:I guess that really depends on what your definition of "hurt" is. There's plenty of people (myself included) who may not necessarily have had a down-payment placed on a game, but were potentially saving money to buy a game in the near future. Imagine their reaction when they are now presented with the fact that they'll have to pony up another $1000. It stings. And it's annoying.
Some folks will be priced right out of the market and choose not to buy games now due to the new price model. If JJP is trying to maximize sales, that's going to hurt.
But if they're trying either maximize profit or winnow sales due to supply chain and production limitations, well, they've achieved their objective. But I'm not sure the long-term effects are worth the short-term gains.
Time will tell whether or not the market will bear these changes or not.
Fair point...price increases do suck from a consumer perspective. So HUO vs NIB might be the better consumer decision if NIB is too high to justify.
Quoted from flynnibus:I think you need to do a bit more reading on the formation and backing of JJP.
Quoted from flynnibus:I think you need to do a bit more reading on the formation and backing of JJP.
Im always open to being wrong and remaining teachable.
I read this...is there more backstory to the backers that I'm missing? I understand these investors are familiar with pinball...but it's always smart to invest in things you understand. And like. Its still investing with purpose of ROI. Maybe I'm missing something...investing is investing.
https://www.jerseyjackpinball.com/thinklab-ventures-leads-new-investment-in-jersey-jack-pinball/
Quoted from 27dnast:“ Abess gained national notoriety in 2008 when he sold his company, City National Bank of Florida, for $945 million and gave his staff a bonus of $60 million to share among themselves. As a result, he is a Time 100 honoree and Reader’s Digest’s America’s Best Boss. He is also a fervent pinball machine enthusiast.“
I did read that. Sounds like a high integrity leader and businessman that likes pinball and takes care of his people. I like this guy!
Presumably he still expects a return on his investment in JJP? Maybe not...details of the investment/transaction were not disclosed so no one will really know. But good on him nonetheless. I wish JJP much success - competition is good for the consumer.
Quoted from LTG:When shows start up again. If you see him at a show. Take the time to meet him. Well worth a visit with him.
LTG : )
I sure will...I enjoy meeting down to earth and approachable business people....and that they also like pinball is a real bonusX! 
Quoted from flynnibus:Jersey Jack was started as a passion project - the idea that they could build a business by building what was seen as an underserved market. A business started with a passion and goals to be 'the best' - not with ideals of ROI as the priority or that this was the best way to make money. It wasn't a 'ROI first' mindset that created the company, nor that steered it.
There is a reason the joke stands... Oh how to become a millionaire making pinball... start by being a billionaire.
When Jack took on new investors, again these people were motivated by their passion for the product - not strictly by business first or ROI. They were long time customers who took the opportunity to save JJP and morph it into what they think it should be. It's been six years and they've just done another huge capital investment in the business. This isn't ROI first thinking. These are passion lead projects people are trying to make into working businesses.
You can't just run around with 'businesses exist only to make money' mantra... or 'they aren't a charity' arguments. All arguments fail when you use extremes that are not representative of the reality that there is ground besides those polar extremes.
There is certainly middle ground....
My comment was to speculate (and agree with others) on why the $1k price increase. Profits is my opinion and I don't hate them for it either, but you're saying it's because they love pinball?? Or a little of both?
It appears you may know Jack and these other investors personally and have inside knowledge of their motivations here. I will admit, I do not know these people.
So why did they increase the price by $1k?
Quoted from snaroff:Because they have a hot product in a market with lots of disposable income. Even with the increase, I'm sure their margins aren't that impressive.
Exactly my opinion...for more profits. And I surely don't blame them for it...or hold it against them. I can only control my actions...as a consumer...to buy it or not.
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