Quoted from iceman44:I think here is the easiest way to look at it:
I'm going to guess the "net profit margin" is anywhere from 5-10% on a PRO model
And then i would say 10-12% on a PREMIUM model and 15-18% on an LE model.
Let's assume with normal operating conditions they are producing 60 pins a day over a 260 day work calendar year ish. That's 15,600 pins. I know that's in the ball park and might be higher now?
LE models per year roughly 2,000 units on 4 titles = $9,200 x 15% = $1,380 per pin or $2,760,000
Premium models per year 5,000 units total = $7,600 x 10% = $760 per pin or $3,800,000
Pro models per year 8,600 units total = $5,800 x 5% = $290 per pin or $2,494,000
That's a TOTAL "net profit" AFTER all expenses of $9,054,000
And that does NOT include accessories and other ancillary income
Thus, i'm assuming the ACTUAL % "net profit margins" are probably LESS than the above numbers
This gives us at least a starting point to play around with.
This is why Stern has to keep the line moving!!!
I think your net profit margins on individual machines are probably close to the mark. However I seriously doubt they are producing 60 pins/day. That would be 1 pin every 8 mins. This is not an automated assembly line or 10,000 employees. I don't think they could even load them up on trucks fast enough to keep up with production - remember most distribs don't buy them 60 at a time.. which means many trucks with smaller loads. Shipping is an important consideration given the size of these things. Storing hundreds of machines would not be not smart business. I think that ~20 machines per line per day is more likely. They have 2 assembly lines and they don't always have both up and running. At 20/day it would take about 4.5 weeks (25 business days) to produce 500 LEs. Seems about right.
