(Topic ID: 136458)
Quoted from Delta9:Im a business man . So i do tend to think about money. And im very curious how many millions is stern really making per year ? And please keep on topic this isnt a bash stern thread !!
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You're the business man; you tell us.
I'm "a business man" as well, and best I figure there is a lot less money being made in pinball than people think.
New York, NY
I don't have the impression they are rolling in the dough. I am quite happy they are solvent and making games. I hope they make a killing so everyone there gets paid well. I love me some pinball!
They donate all the profits to Pinside to keep the hype train moving for the next title.
Pay for the Stern Night at Pinball Expo Chicago.
We know they don't use it for QC or to add value to thier products since they keep cutting more and more out at each price jump.
Quoted from Delta9:im very curious how many millions is stern really making per year ?
I guess if it was any of our business they would let us know,but its not.
Quoted from GravitaR:They donate all the profits to Pinside to keep the hype train moving for the next title.
Pay for the Stern Night at Pinball Expo Chicago.
We know they don't use it for QC or to add value to thier products since they keep cutting more and more out at each price jump.
Just want to be clear so NO rumors take root from this..Stern does NOT fund Pinside.
That is all. Resume speculation.
Here goes my first post!
I'm no business man, but I do have a degree in economics on my wall. (That and 6 bucks buys a coffee at starbucks.) I have no clue how well Stern is doing, but I think the fact that JJP and others have started producing machines in the past few years is a good sign of improved health in the overall pinball manufacture market.
Frankly anyone who loves pinball and wants the availability of games to continue should be cheering for Stern, even if they don't like their product. If Stern makes money hand over fist, others will take notice and enter the market. That increased competition is excellent for all of us. More competition means better machines at lower prices. As someone who has yet to buy my first machine, that sounds great to me.
Quoted from RCA1:$2.47, exactly.
Prove me wrong.
2+3=8,
3+7=27,
4+5=32,
5+8=60,
6+7=72,
7+8=??
I was going over how you did it and I think you made a mistake. $2.48 exactly.
LTG : )™
Quoted from RCA1:$2.47, exactly.
Prove me wrong.
This is exactly what I was going to post. Must have heard it from the same source, hence it is true.
Quoted from PopBumperPete:@OP
How much do you earn?
Be careful. He may come back with how he is an executive who wears only designer shoes, hipster clothes, lives in expensive apartments, and only buys LOTR LEs for top dollar. I really hope not...
Quoted from NJGecko:Just want to be clear so NO rumors take root from this..Stern does NOT fund Pinside.
That is all. Resume speculation.
Stern funds Jared. Jared helps fund Pinside. You could argue that Stern funds Pinside via the transitive property.
Consider the rumors fueled.
Winnipeg, MB
Quoted from Gryszzz:I came here to become a pinball guru, er, legend.
You ended up as a member.
Quoted from o-din:You ended up as a member.
Screw that, I'm not hangin out with a bunch of members......I'm headed to RGP. But I heard they're Data East funded.....so no fancy pictures or clever emoticons.
Quoted from PinBallMagician:The answer is 42.
The answer is 47. It's been adjusted for inflation.
Melbourne
Yep, no $$ to be made in pinball.
Pinside owners #'s (rounded down) - Small sample, recent LE's
AC/DC Premium 750 @ $6500 = $4,875,000
MET LE/Premium 385 @ $6500 = $2,502,500
Star Trek LE/Premium 425 @ $6500 = $2,782,000
X-Men LE 225 @ $6500 = $1,462,500
Conservative manufacturing margin @ 20% = $2,324,400 (I think Stern's is much higher personally) Obviously this isn't net profit, but it's also a fraction of their titles. I don't claim to know much about manufacturing, but think alot of people are wrong if they think Stern isn't making $$. Maybe I'm way off, but a whole lot of people jumping into the pinball manufacturing business for some reason.
Quoted from ectobar:about tree fiddy
You gave that Locness Monster tree fiddy!
Why would anyone bash Stern? Its the only pinball company that consistently produces machines at the lowest market price and they are FUN!
Thank you Stern. Id have to guess they make a Brazilian Million a year.
Quoted from Toasterdog:Yep, no $$ to be made in pinball.
Pinside owners #'s (rounded down) - Small sample, recent LE's
AC/DC Premium 750 @ $6500 = $4,875,000
MET LE/Premium 385 @ $6500 = $2,502,500
Star Trek LE/Premium 425 @ $6500 = $2,782,000
X-Men LE 225 @ $6500 = $1,462,500
Conservative manufacturing margin @ 20% = $2,324,400 (I think Stern's is much higher personally) Obviously this isn't net profit, but it's also a fraction of their titles. I don't claim to know much about manufacturing, but think alot of people are wrong if they think Stern isn't making $$. Maybe I'm way off, but a whole lot of people jumping into the pinball manufacturing business for some reason.
I would bet money that half the cost of a pinball at wholesale is what they take home as profit !! Thats a lotta money were talking millions folks
Quoted from Delta9:I would bet money that half the cost of a pinball at wholesale is what they take home as profit !! Thats a lotta money were talking millions folks
I dunno - when you factor the amount it costs for the factory & utilities, salaries for all the designers, engineers, programmers and other staff, plus all the labor on the factory floor...all that adds up. They're clearly doing OK with how they've been able to move and expand...but I don't think they're rolling in the dough as much as some people speculate. This is a fickle business. They could have a huge hit and then a huge flop to cancel it out.
I heard Gary Stern owns a Safe Cracker that spits out solid gold tokens. He pays Jeff Bridges to stand next to his Tron when he feels like playing it. His Scared Stiff is so blinged out it gives real boners.
True story.
Quoted from radium:I heard Gary Stern owns a Safe Cracker that spits out solid gold tokens. He pays Jeff Bridges to stand next to his Tron when he feels like playing it. His Scared Stiff is so blinged out it gives real boners.
True story.
Gary Stern's scared stiff has the audio disabled, when he wants to play Cassandra comes over to his house and provides personal call outs as he plays.
I do recall that back in the early 2000's Gary was shopping the business around for $20M for everything. They were leaner times so it's probably more now.
Usually a sale price is a multiple of the yearly earnings.
Quoted from ectobar:about tree fiddy
Did the succubus ask you for that? 
Quoted from jwilson:Usually a sale price is a multiple of the yearly earnings.
Or includes debt.
LTG : )™
You didn't hear they are non for profit...How do you explain the new shop? You got to spend it...duh
A guess based on Bloombergs numbers in 2005 sales,
http://www.bloomberg.com/bw/stories/2005-03-30/portrait-of-a-pinball-wizard
Sales are north of 100 million annual. Perhaps 125 Million is my guess with 25,000 units a year production estimates for new
factory. +/- 15% or so.
I havent watched the game building threads, to sense COG, or labor ratios, etc, or attempted a balance sheet, but Investors want a nice ROI, so maybe there are other thoughts or guesses that might help.
In either case, it doesnt matter...I want them to be very profitable, so the games keep coming....
Where would be without Stern?
I am grateful that our Hobby isnt like say antique radios...an aging membership, with 20 year old games, and nothing new to
fuss about. 
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