How much does it costs to start a new Pinball Manufacture company?


By Pinballlew

10 months ago


Stats

  • 67 posts
  • 44 Pinsiders participating
  • Latest reply 10 months ago by desertT1
  • Topic is favorited by 2 Pinsiders

Find

Search this topic for posts matching certain words or written by a specific Pinsider. Or both!




Linked Games

No games have been linked to this topic.



    Topic Gallery

    There have been 4 images uploaded to this topic. (View topic image gallery).

    4776a44bab5f0a2ccb2c8d14b59934082b03a794 (resized).jpeg
    breakingbad_skylerwaltmoney (resized).jpg
    burn (resized).jpg
    image (resized).jpeg


    There are 67 posts in topic. You are on page 2 of 2.
    #51 10 months ago

    As discussed, it depends on who's running it and what sacrifices they're willing to make. It's no different than any startup, really. Some people get fully funded and pay for people, facilities, processes, professional prototype fab. Others bootstrap their companies and sacrifice most/all benefits just to get rolling. Bootstrapping is how we're mostly doing it, but expenses increase dramatically as the company matures.

    I come from the hardware world, where you can choose to work for free (if you have the means to do so), but making physical things costs money. It's easy to estimate how much it would cost to build a few prototypes with mostly existing pinball parts; you can use P-ROC community examples for pricing metrics. Building new technologies and new features, like we are doing, costs a lot more and carries more risk. The flip side is that when new ideas are vetted, manufactured, and accepted, the entire community benefits, and future efforts can leverage that work/time/money-spent.

    Every owner is different, and each company is different, but I think everybody can agree on one thing. Building a pinball company is an expensive proposition. Everybody doing so has my respect for taking on the challenge.

    - Gerry
    http://www.multimorphic.com

    #52 10 months ago
    Quoted from Richthofen:

    Spooky had employees who basically worked 'for free', or for the ownership of the company. Ben Heck did hardware and software design, and Charlie and family did the assembly, parts sourcing, etc etc etc

    Assemblers were paid, but not always because of lack of funding in the beginning. Ben heck built 2 pinballs for fun before AMH. He received some agreed licensing fee for every machine sold. His family definitely helped (daughter was the wiring harness assembler), but this is no different than a person starting up a restaurant. I believe Charlie was already renting that space originally for his sign business.. Business property is surprisingly cheap in rural Wisconsin compared to other areas.

    With that said, Charlie did everything right, and it's a miracle he survived to get his head above water. He 3d printed everything he could on AMH, used off the shelf parts.. When his wife realized how much they were spending having parts shipped in from pinball life and calculated what gas costed to pick them up in person with the trailer, that saved a bunch of money. Now that he has a good flow of games going out and income coming in, sounds like he's trying to slowly bring those processes in-house which will not only reduce cost more, but he can prototype early (which can be the most expensive part).

    Could someone spend a couple million starting one up? Sure, but I think some passionate hobbyists could also build a one-off, take a small deposit on orders, and use that money to build up the first machines for much less. Anyone can throw money at a business right off the bat, how quickly do you want to ramp up?

    #53 10 months ago

    Judging by the number of manufacturers we have now, I'd guess around 75 bucks or so?

    #54 10 months ago
    Quoted from CrazyLevi:

    Judging by the number of manufacturers we have now, I'd guess around 75 bucks or so?

    For at least one of them.

    4776a44bab5f0a2ccb2c8d14b59934082b03a794 (resized).jpeg

    #55 10 months ago
    Quoted from Homepin:

    look at the Homepin Facebook page instead - I fail to see the issue.

    It's extremely unprofessional to rely on FaceBook and not also have a solid website. The website should always be the first and foremost priority on the Internet, followed by social media, directory submissions, NAP consistency, SEO & other related items.

    This is the 21st century. Social media is important, but a real website is much more important for credibility. It can't possibly cost that much to throw a few quick updates up. I'd be embarrassed if I were the web firm in charge of your site.

    #56 10 months ago

    according to jack, it's like 4 million.

    #57 10 months ago

    And there is the question - how many games do you need to sell to become profitable?

    #58 10 months ago
    Quoted from sevenrites:

    It's extremely unprofessional to rely on FaceBook and not also have a solid website. The website should always be the first and foremost priority on the Internet, followed by social media, directory submissions, NAP consistency, SEO & other related items.
    This is the 21st century. Social media is important, but a real website is much more important for credibility. It can't possibly cost that much to throw a few quick updates up. I'd be embarrassed if I were the web firm in charge of your site.

    Yeah, Mike is a backwater hick and does not know what he is doing

    He sold me on TAG on his reputation alone

    As he has said before, he want to get his factory and processors up and running smoothly before he goes and promotes his games on aworld wide basis

    #59 10 months ago

    How long is a rope?
    The price is more of very hard work and passion than any money can buy.

    #60 10 months ago
    Quoted from Shapeshifter:

    And there is the question - how many games do you need to sell to become profitable?

    too many variables...

    how much did you spend in R&D?
    how much did you have to spend in fixed assets?
    how long did you run for?
    what kind of margin did you achieve on the product?

    Your margin is going to be so unsecured until you actually get the product done.

    Your first milestone is going to be cash positive... then eventually look at making games profitable.

    #61 10 months ago
    Quoted from Shapeshifter:

    how many games do you need to sell to become profitable?

    You should ask j-pop or that skit-b dude.

    #62 10 months ago
    Quoted from o-din:

    You should ask j-pop or that skit-b dude.

    They were profitable without ever actually selling a game!

    #63 10 months ago
    Quoted from frolic:

    For at least one of them.

    You see there was the problem from the start - there weren't enough microwave ovens.

    Quoted from PopBumperPete:

    Yeah, Mike is a backwater hick and does not know what he is doing
    He sold me on TAG on his reputation alone

    Well there are certainly Luddite-esque tendencies as the 1997 era website alludes to both in layout and content.

    http://www.homepin.com/

    http://www.heavensgate.com/

    The parallels between the two particularly the dogmatism of the followers acting as defacto spokespersons in perpetuity are uncanny.

    #64 10 months ago

    I update my progress here on Pinside, the Homepin Facebook page (as much as I also dislike FB) and on Aussie Arcade usually at least once a week. Very often I can't access FB or use an FTP program to access my website so I am taking the path of least resistance about this - otherwise it would be NO updates at all.

    I do so because it is mostly quick, easy and painless and keeps people up to date with progress.

    To do this with a website requires a lot more of my time and effort that I simply cannot spare right now. I can't stress enough that we are on a shoestring budget for manpower and money. I expend resources where I see they are best spent and the Homepin website (and several others of mine) currently are NOT a priority and therefore are not getting any attention, for now.

    If it wasn't my website someone would find something else to bitch about like the colour of my car or "why does that Homepin idiot get to work 15 mins late EVERY DAY? He should work 24 hours a day?"

    I have asked for an intern to help out but only had people wasting my time but for those playing at home this page might be interesting:

    http://homepin.com/intern.html

    Now can we drop this obsession with my website and get back to the OP's question please.

    #65 10 months ago
    Quoted from Homepin:

    If it wasn't my website someone would find something else to bitch about like the colour of my car

    It should be blue, like the Homepin logo. Otherwise there will be hell to pay!

    #66 10 months ago
    Quoted from Homepin:

    I update my progress here on Pinside, the Homepin Facebook page (as much as I also dislike FB) and on Aussie Arcade usually at least once a week. Very often I can't access FB or use an FTP program to access my website so I am taking the path of least resistance about this - otherwise it would be NO updates at all.
    I do so because it is mostly quick, easy and painless and keeps people up to date with progress.
    To do this with a website requires a lot more of my time and effort that I simply cannot spare right now. I can't stress enough that we are on a shoestring budget for manpower and money. I expend resources where I see they are best spent and the Homepin website (and several others of mine) currently are NOT a priority and therefore are not getting any attention, for now.
    If it wasn't my website someone would find something else to bitch about like the colour of my car or "why does that Homepin idiot get to work 15 mins late EVERY DAY? He should work 24 hours a day?"
    I have asked for an intern to help out but only had people wasting my time but for those playing at home this page might be interesting:
    http://homepin.com/intern.html
    Now can we drop this obsession with my website and get back to the OP's question please.

    I think you are missing the point that a few of us have made in this thread in that the website is the first point of interface for any potential customer undertaking a google search and at first instance it looks as if the site hasn't been updated since 2015 which doesn't instil a great deal of confidence at least from a cursory level.

    Now that clearly isn't the case since "someone" has added the Stripe online payment system to the front page in the last 5 weeks for whatever reason so whoever has done that could easily add updated information as to current progress with minimal effort, cost and time.

    #67 10 months ago
    Quoted from toyotaboy:

    Assemblers were paid, but not always because of lack of funding in the beginning. Ben heck built 2 pinballs for fun before AMH. He received some agreed licensing fee for every machine sold. His family definitely helped (daughter was the wiring harness assembler), but this is no different than a person starting up a restaurant. I believe Charlie was already renting that space originally for his sign business.. Business property is surprisingly cheap in rural Wisconsin compared to other areas.
    With that said, Charlie did everything right, and it's a miracle he survived to get his head above water. He 3d printed everything he could on AMH, used off the shelf parts.. When his wife realized how much they were spending having parts shipped in from pinball life and calculated what gas costed to pick them up in person with the trailer, that saved a bunch of money. Now that he has a good flow of games going out and income coming in, sounds like he's trying to slowly bring those processes in-house which will not only reduce cost more, but he can prototype early (which can be the most expensive part).
    Could someone spend a couple million starting one up? Sure, but I think some passionate hobbyists could also build a one-off, take a small deposit on orders, and use that money to build up the first machines for much less. Anyone can throw money at a business right off the bat, how quickly do you want to ramp up?

    And I really like the approach. Low key the whole way. Smart choices over seeking glory.

    Really excited for TPF.

    Promoted items from the Pinside Marketplace
    $ 989.00
    $ 29.99
    Cabinet - Sound/Speakers
    Lighted Pinball Mods
    $ 27.25
    Playfield - Toys/Add-ons
    The MOD Couple
    From: $ 130.00
    $ 69.99
    Playfield - Toys/Add-ons
    Lighted Pinball Mods
    $ 5,699.00
    Pinball Machine
    Pinball Mafia
    $ 29.99
    Cabinet - Sound/Speakers
    Lighted Pinball Mods
    $ 47.99
    Playfield - Toys/Add-ons
    Lermods
    $ 65.00
    Cabinet - Armor And Blades
    Texas Pinball
    From: $ 199.99
    Lighting - Backbox
    Lermods
    From: $ 199.99
    $ 24.00
    Apparel - Unisex
    Double Danger Pinball
    £ 45.00
    Lighting - Other
    PinballToys
    $ 129.00
    Lighting - Led
    LED OCD
    $ 15.00
    Cabinet - Decals
    Siegecraft Electronics
    € 3.95
    $ 65.00
    Cabinet - Armor And Blades
    Texas Pinball
    $ 400.00
    Boards
    Great American Pinball
    From: $ 14.95
    Playfield - Toys/Add-ons
    ULEKstore
    $ 24.99
    Lighting - Led
    Lee's Parts
    € 3.95
    Flipper Parts
    Multigame
    From: $ 42.00
    Cabinet - Shooter Rods
    ModFather Pinball Mods
    There are 67 posts in topic. You are on page 2 of 2.

    Reply

    Note: This is an old thread. The last post was made to it 315 days ago. Resurrecting old threads is not necessarily a bad thing, if you think the topic is still relevant and/or your post is beneficial to it (e.g. following up on something). In other cases, it might be better to create a new topic.

    Wanna join the discussion? Sign up for a Pinside account, or log in if you already have an account.


    Hey there! Got a moment?

    Great to see you're enjoying Pinside! Did you know Pinside is able to run thanks to donations from our visitors? Please donate to Pinside, support the site and get anext to your username to show for it! Donate to Pinside