Quoted from flynnibus:It sold at a loss because they set the price before they really knew what they were doing
absolutely factual. Jack was really proud to say at the initial seminar at expo "Wizard of OZ bill of material?! to HELL with that, I'm building what I want", which is crazy talk when you pre-announce the final price. It's one thing to just build a pinball, figure out your BOM, then announce.. it's another to announce retail price before you know what it's going to cost to build.
I design new product often at my job, and there's NO way we would announce pricing without not only building a prototype, but multiple revisions of the prototype until we were happy with the features, quality, strength, reliability, UL compliance, production volume vendor pricing, estimated production time it takes to build each unit so we can factor in hourly labor rate, production fixtures. I admire Jack's passion and alternative way of running a company, but it sure bit him in the ass early on. It's only because he keeps building great quality games that he continues to sell them.