(Topic ID: 171125)

Increasing Prices: Good for Pinball

By brundaged

7 years ago


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  • 294 posts
  • 95 Pinsiders participating
  • Latest reply 7 years ago by LTG
  • Topic is favorited by 5 Pinsiders

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There are 294 posts in this topic. You are on page 2 of 6.
#51 7 years ago
Quoted from jar155:

There is no way that a mass market can support these prices. It won't work.

My point is the manufacturers feel confident in exploring the market. That's good. We'll find out if you're right, and the prices will contract. It would be better for the market if that didn't happen.

11
#52 7 years ago

These prices are a cash grab by Stern...who if you ask me Gary is about to check out of his role and retire 9k for a LE is a cash grab, SLE at 15k cash grab, Premium is also a cash grab. If you ask me Gary is grabbing all he can for his retirement exit which I bet will happen sooner then later. These prices are absolutely not good for pinball to be operated or collected...for the manufacture sure in the short term but they are running out of runway on the longevity of this cash grab and their short term gains might just lead to long term losses. As far as non pinball games costing 15k, those games ROI is much shorter then pinballs currently...apples to oranges.

15
#53 7 years ago

Want to know how we already know it's bad for pinball? There were three major games unveiled (Dialed In, Batman '66, Aliens) at Expo this year and the biggest talking point is the price of the games. We're not focused on cost over content. Good job, guys. Way to go.

#54 7 years ago
Quoted from Pinballlew:

As far as non pinball games costing 15k, those games ROI is much shorter then pinballs currently...apples to oranges.

Ops need to find a way to turn pinball apples into non-pinball oranges, price-wise. The market is changing, and the old thinking needs to change too.

#55 7 years ago
Quoted from jar155:

Want to know how we already know it's bad for pinball? There were three major games unveiled (Dialed In, Batman '66, Aliens) at Expo this year and the biggest talking point is the price of the games. We're not focused on cost over content. Good job, guys. Way to go.

Definitely not emotional, then.

I get it, but that's not what this thread is about.

#56 7 years ago
Quoted from brundaged:

Where do you get 80 games? Last I knew it was 30.

I think everyone will agree that, you don't know.

#57 7 years ago

$5000 will always be my limit on a game. I know that means I'll never own certain sought after titles or anymore NIB games. I'm ok with that.

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#58 7 years ago
Quoted from PorkChopExpress:

I think everyone will agree that, you don't know.

The numbers don't change the reasoning.

#59 7 years ago

I have bought every new stern for the past several years except wwe. I will not spend this much on nib however. Gble was most likely my last new stern.

#60 7 years ago
Quoted from forensicd:

I have bought every new stern for the past several years except wwe. I will not spend this much on nib however. Gble was most likely my last new stern.

Same here. It was my 8th Stern and my 3rd Stern NIB. It was also the last.

#61 7 years ago
Quoted from brundaged:

The future of pinball may be a lot more people playing just a few games. The agony over pricing is mostly about home collectors not being able to afford NIB, which I understand.

Pinball is already on the low end of the earnings in the coin-op world. Pushers, pool tables, and others all out earn pinball. Raising the price means fewer on location, fewer new players who will someday be collectors.

It's bad for the hobby.

#62 7 years ago

Great point.

#63 7 years ago
Quoted from YeOldPinPlayer:

Pinball is already on the low end of the earnings in the coin-op world. Pushers, pool tables, and others all out earn pinball. Raising the price means fewer on location, fewer new players who will someday be collectors.
It's bad for the hobby.

I'd challenge the thinking that pinball needs to go in the same places that have pool tables and coin pushers. The future economic model may not even be about pay per play.

#64 7 years ago

Probably the next step is financing or leasing.

#65 7 years ago

Ya, it sure is good for pinball that practically nobody outside of the USA can afford a new game. Should do wonders for the hobby!

#66 7 years ago

I've had a lot of games come and go. My last new games were: STLE, AMH and Full Throttle. With current prices, I have adjusted my buying. My next new game, if I buy new, will likely be Spooky or an Heighway Alien kit. Those appear to be my best bang for the buck options.

I love the Stern and JJP products. This is not a criticism of them. For example, I would love to have BM66 or Dialed In. I'm just not willing, at least today, to pay the asking price.

#67 7 years ago

The problem is people are paying it batman les/sles are sold out.

The problem I see coming is it increases the second hand market, wich will reduce the amount of new people coming into the hobby due to high prices (which usually start on lower end titles) which will make your used games harder to sell for higher prices, which makes buying the new games and keeping all the manufacurers building less sustainible.

It will be interesting to see how many eg bm66 prems sell at that price. It may be the rarest version of all..

#68 7 years ago
Quoted from libtech:

The problem is people are paying it batman les/sles are sold out.

One of the overseas fellas said that's not the case over there. I can see that with the increase they enjoy.

#69 7 years ago
Quoted from flashinstinct:

The only thing you leave out in your calculations is the frustration that you lay on your consumer base.
For example, here in Canada we get gouged on Telecom services because there are only 3 big fish (Bell, Rogers, Shaw/Telus). These three big guns increased pricing for no real reason for years on internet, tv, mobile and phone services. Then netflix came along and completely changed the rules. This year alone, I'm one of 260K canadians that cancelled their TV service and went streaming solo only. I'm not even close to going back they pissed me off so much that I don't even bother looking at their offerings. Rogers tried launching shomi (netflix ripoff) and failed, Bell as craveTV but I'm sure they are not doing as well as netflix.
Point is, piss off someone long enough and you lose them as a client even if you lower the price of your items. When I cancelled they tried taking 60% off the price I was paying which a) pissed me off even more and b) proved to me that there entire platform was based on gouging.
To offset these loses they keep increasing the price... sometimes you can't even find the logic in it. It's like they are starring down a loaded barrel and don't even bother getting out of the way.
It might not relate exactly with pinball but principle is the same. A pissed off client base is never good for business even if you make record profits in the short term. It's shortsighted. I'm sure Bell still wonders where Netflix came from.

How do you expect Rodgers to resign Bautista without doing this?

#70 7 years ago
Quoted from jar155:

Want to know how we already know it's bad for pinball? There were three major games unveiled (Dialed In, Batman '66, Aliens) at Expo this year and the biggest talking point is the price of the games. We're not focused on cost over content. Good job, guys. Way to go.

That is so true. Just the price of B66 has already conditioned a lot of people to think that $7k is a good price for a game. I kind of want Stern to sell Aerosmith Pro at the price and see the reaction.

I wonder if Stern is trying to price out low end home owners to make them go play location pinball. That would be an interesting strategy. I'm not sure how well it works with pinballs on route so few and far between.

#71 7 years ago

There is no way that double the "normal" prices can be good for pinball period. It's a race to the bottom and it will effect not only the smaller manufacturers but also the suppliers. Think about how many hundreds of companies will be hurt and close when games are not able to be purchased by the people who actually buy the machines. Not to mention the route people. Less games in the wild will mean less non owners exposed to pinball and less new faces. Personally I think Gary is setting himself up for a buy out and is trying to put as much money on the books to leverage a bigger sale and to hell with anyone after he cashes out and hauls ass.

#72 7 years ago
Quoted from jwilson:

Probably the next step is financing or leasing.

Sad but true.

#73 7 years ago
Quoted from Travish:

There is no way that double the "normal" prices can be good for pinball period.

I still say people are thinking too small. The market and industry are changing. That's a good thing. Everyone wants the old business models to keep working--and that's understandable--but they don't, or at least not well enough. The industry needs big changes to move forward.

#74 7 years ago
Quoted from brundaged:

I still say people are thinking too small. The market and industry are changing. That's a good thing. Everyone wants the old business models to keep working--and that's understandable--but they don't, or at least not well enough. The industry needs big changes to move forward.

What it needs is more competition and for someone to come in and undercut JJP and Stern by a significant margin.

#75 7 years ago
Quoted from Sticky:

What it needs is more competition and for someone to come in and undercut JJP and Stern by a significant margin.

They're definitely leaving room for it. I think Stern is thinking they have that covered with their Spider-Man the Pin.

#76 7 years ago

Don't get mad at Stern and JJP!

Get mad at the, "Gotta have it, this is my dream pin, this might be the next MM" idiots who have caused these price increases!

#77 7 years ago

Why do people feel this combination of entitlement and betrayal when they are priced out of a luxury good? Is it just basic human envy?

#78 7 years ago

All the pin owners should get together in their local areas and rent shared spaces, and then invite everyone over so us poor folk what cain't afford none of these here "spendy pins" can get a play or two in.

#79 7 years ago
Quoted from trunchbull:

All the pin owners should get together in their local areas and rent shared spaces, and then invite everyone over so us poor folk what cain't afford none of these here "spendy pins" can get a play or two in.

Pinball welfare? I don't think that's going to catch on.

#80 7 years ago
Quoted from Sticky:

Pinball welfare? I don't think that's going to catch on.

I think the official term is "arcade".

-2
#81 7 years ago
Quoted from FlippyD:

Why do people feel this combination of entitlement and betrayal when they are priced out of a luxury good? Is it just basic human envy?

Every time someone throws out the "greed" accusation it feels ugly. None of us knows what the books look like inside these companies. And companies need cash to survive and grow.

13
#82 7 years ago
Quoted from FlippyD:

Why do people feel this combination of entitlement and betrayal when they are priced out of a luxury good? Is it just basic human envy?

Because as a pinball hobbyist I feel like I am part of a community- and if you've been a part of that community, you feel like you've supported the manufacturers through their hard times and have helped keep the hobby alive and grow it, and now that things are good, they are slapping you in the face with obvious cash grabbing, money grubbing and moves that are likely to hurt pinball by isolating a large group of people that used to be able to buy machines but now can't/won't.

And let's be straight up here- we are not being "priced out" like you suggest, that means we can't afford them. I would say we are more aware that this product is overpriced and that we are being taken advantage of. If anyone is showing entitlement and/or betrayal, it's the pinball companies shafting the pinball community IMO.

#83 7 years ago

There's also the irony that pinball started out as something that literally anyone with a couple quarters could play, and now, unless you're lucky and live in a good place, you either have to be on good terms with a collector or be a collector.

#84 7 years ago
Quoted from Pinball-Wiz:

I would say we are more aware that this product is overpriced and that we are being taken advantage of.

Overpriced compared to what?

#85 7 years ago

I have no problem with someone spending more money than I am willing to spend. That not really any of my business or anyone else's. I do agree that the companies are out pricing themselves. Time will tell.

#86 7 years ago
Quoted from MinusWorlds:

Home collectors can't afford them
Operators don't want them because it doesn't make sense as a business model
Who's left?

Perhaps it makes more financial sense for them to sell far fewer games but at significantly higher pricing, targeting a more wealthy clientele. Maybe they are experimenting with price points to find the sweet spot that makes most sense long term.

#87 7 years ago
Quoted from brundaged:

Overpriced compared to what?

To what the market will bear. And the market (me) is not accepting this. I've spent over $150,000 on new in box pinball machines, both stern & JJP in the last two years. No more.

I'm out.

#88 7 years ago
Quoted from ExtremePinball:

To what the market will bear.

Time will tell if this is true. We don't know yet, but it's far from conclusive that you're correct.

#89 7 years ago

what it comes down to, is that JJP and Stern are going to fawk themselves royally and soon.

I know lots that buy NIB games, and the shit they are pulling is leaving a bad taste in everyones mouth. People will eventually say, fawk you, and not buy. Lots of slow learners on here, so takes longer than it should have. The NIB buyers around here have said they are not buying either of these games because of this price hike. You would think they would sell for more reasonable prices, so more people buy, you get your name out there more and your products. Nope...greed..greed ...greed. THey will learn soon enough they have pushed the envelope to far.

9k for dialed in. 9k for batman. Why?

Alien is $6500. The drop in kit for full throttle is around 4k. For 10.5 you can get 2 games just as good NIB. There are other choices out there and people will start moving towards them when you piss them off.

#90 7 years ago
Quoted from CaptainNeo:

You would think they would sell for more reasonable prices, so more people buy, you get your name out there more and your products. Nope...greed..greed ...greed.

There's that unfounded accusation again. Unless you have special knowledge of their finances it's just an ugly opinion.

Smaller companies are always hungrier and willing to give away more for less profit. The manufacturers are seeking points of differentiation, including pricing. There's nothing wrong with that. If it doesn't work, they'll change.

#91 7 years ago
Quoted from brundaged:

There's that unfounded accusation again. Unless you have special knowledge of their finances it's just an ugly opinion.
Smaller companies are always hungrier and willing to give away more for less profit. The manifacturers are seeking points of differentiation, including pricing. There's nothing wrong with that. If it doesn't work, they'll change.

it's not rocket science to figure out what cost to manufacture is. If you have worked in the manufacturing realm anytime in your life or have worked purchasing, it's fairly easy to figure out costs for things. If you do not have the ability to have this hindsight, quit accusing the people that do. I'm sorry you do not have the insight to figure out things. But I can guarantee you, that any machine at 9k, is working at about 300% profit give or take 5%.

#92 7 years ago
Quoted from brundaged:

Overpriced compared to what?

Tron, LOTR, WOZ, you get the idea.

Quoted from brundaged:

I still say people are thinking too small. The market and industry are changing. That's a good thing. Everyone wants the old business models to keep working--and that's understandable--but they don't, or at least not well enough. The industry needs big changes to move forward.

So the market needs to tick off their entire customer base and price most of their customers out of the market to move forward? Here is the problem. At some point people are going to sell these games on the secondary market. And the number of people that can buy them will also be smaller due to costs, so all if a sudden losses will increase. The thousands extra Stern took away from flippers by increasing prices will come right out of game resale value.

#93 7 years ago
Quoted from CaptainNeo:

it's not rocket science to figure out what cost to manufacture is.

I agree with you. Where we disagree, I think, is in your assumption that the cost to manufacture should dictate the sale price.

I don't expect you know what the payments on Stern's new facility are, for example. Or what the terms of JJP's investors are. Those are two big unknowns that deflate the whole greed argument. As a passionate pinball hobbyist I'm confident you want them to survive and make more machines. What if this is the cost of that survival?

There are other points about this cost of production argument, but it's the greed thing that doesn't make sense to me.

#94 7 years ago
Quoted from DaveH:

Tron, LOTR, WOZ, you get the idea

Assigning price is all about the present market, not what was done in the past.

13
#95 7 years ago

Manufacture prices don't dictate sale price, but the customer does. When were paying $3400 shipped to your door for NIB games in less than 8 years ago. It's hard not to feel gouged and taken advantage of, when they keep trying to increase the price by 10% every year. Inflation is only 4%, so eventually they will out inflate themselves and piss off the customer base in the process. Once you do that, people stop buying and if you piss them off enough, they quit for good. Then your company is in trouble, because you pushed the envelope to far.

-9
#96 7 years ago
Quoted from CaptainNeo:

When were paying $3400 shipped to your door for NIB games in less than 8 years ago.

I'd suggest pins were underpriced 8 years ago. If you bought a house 8 years ago and it was worth more now, I imagine you'd sell it for what it was worth today not what you thought it was worth 8 years ago.

I understand the frustration everyone feels about increasing prices, but I'm talking about where the market is at right now.

#97 7 years ago

Pissing off the majority of you customer base by making an unwarranted large price increase is not a good thing IMO. They had a good thing going making sensible, small increases in price that people were willing to accept.

-1
#98 7 years ago

Uh, no.

#99 7 years ago

I don't think I would have owned the number of machines in my collector history if increasing machines prices was good for pinball.

If games always matched inflation with no devaluation of a title based on age alone not considering actual physical condition, there would be no secondary market, nor increasing number of collectors.

The pinball hobby continues to be built on the backs of used game sales in the full scope (whether HUO, reconditioned, fully restored, HEP, or projects), not new games for the time being. In the future this may change (if reproduction parts become unavailable again), but this has not occurred at this time, and at the current pricing will not change immediately.

#100 7 years ago

IF the new prices are what Stern and JJP need to sell the games at to cover costs then they have miscalculated their budgets and as companies will die.

The price hike hasn't been a slow increase. It has been brutal and that does not indicate a larger BOM cost and manufacturing costs. It indicates a price gouge that will ultimately backfire.

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