(Topic ID: 300745)

Here's a Tip - Don't Buy A Flip!

By Ecw0930

2 years ago


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  • Latest reply 2 years ago by captainBR
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    #29 2 years ago

    The only way this stops is very simple. Stern needs to keep escalating the LE cost and increasing the LE quantity until buyers tap out at MSRP price and the variance for flipping is reduced to zero because of lack of interest.

    Stern should increase the next LE to $11,499 @ 1250 units. At some point the market will be satisfied through the MSRP / distributor model and it is in Stern's best interest more than anyone to push to find that equilibrium.

    If they raised to 1250 units @ $11,499 and only sold 1,119 through to distributors (making up a number here) - then they just don't build the remaining few and they now have a successful litmus test for what the market actually will absorb. Right now as Godzilla has shown us, the market wants to absorb more than 1000.

    #32 2 years ago
    Quoted from CrisCrow:

    why would any company want to do this? what benefit is there for them? if it was me id be happy that my product was next to unobtainable and people were charging and paying double what I initially charged. means I was successful

    I dunno...capitalism?? The market continues to demonstrate to Stern with each release that they are repeatedly leaving money on the table. Why would they want to do that on their premier product line? The margins are the biggest on the LE and can be even bigger in their favor. They don't make pinball machines out of the goodness of their hearts. They aren't a not-for-profit existing for the love of the hobby. Its a balance and any smart business would be constantly evaluating the variables in the market, beyond just market absorption of product, to establish price points and quantities.

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