I can understand how those overseas look at the price once 'exchange rated' and see it this way - four figures is a lot on most people's budget. Remember though that we all have the advantage of being part of this scene and have built cabinets ourselves from scratch, so this also swings our opinion somewhat - to the lay man this hobby and the value of the technology in an arcade machine is viewed very differently.
Again, being on the Brit side of things I've gotta defend this. So let's break it down...
A 'retro-fit' table is £2499
£375 is lost in VAT
Assuming a brand new 19" regular aspect monitor £100 (regular aspect is now hard to come by new and I know from speaking to ST before that they have to have a certain brand with a large vertical viewing angle)
Assuming a control panel parts cost of around £180 (Yes parts are pricey here and I'm assuming a neat, crimped, EU-approved wiring job)
Misc cables for power, monitor etc. of £30
Tempered tinted glass at around £50
Speakers, connectivity ports and wiring - £80
CNC-cut metal control panel - £50
CNC-cut, sanded, lacquered wood - £100
Misc custom bolts, screws, hinges, catches, drawer and panel mechanism, feet - £50
Labour £7 @ 30 hours - £210
Workshop running costs for 20 hours (including premises rates) - £30
Packaging - £10
Software, licencing - £50
Advertising - £5
Misc business running costs - £20 (touch-ups, tool wear, glues+adhesives, solder - yes all have to be factored in!)
This lot alone brings it down to £1100, and I'm probably forgetting a lot of points here which need to be factored in. Couple this with the relatively low output of sales compared to a 'expendable goods' industry like the clothing industry, and a sub- £1000 figure doesn't go too far. Money has to go back into research, buying new parts for trial and development, designers, web hosting.... Who knows what other aspects go into ST's business plan?
The only reason we can bring our cabinets at the price we do is because we are a relatively small-scale operation and still hand-build our machines, and we are aiming at a different demographic. I'd say a reasonable profit margin in this business is 20-25% but even that can be tough to work to and not as much as it sounds when you consider the low production rates. We average 2-3 full machines a month, plus a few kits, so it's not aways as profitable as the retail price sounds. The exchange rate cost to the dollar is irrelevant as it's the cost of production in this country that has to determine the price.
I'm sure ST will echo these points.