(Topic ID: 171139)

Increasing Prices: Terrible for Pinball

By jar155

7 years ago


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  • 232 posts
  • 100 Pinsiders participating
  • Latest reply 7 years ago by iceman44
  • Topic is favorited by 3 Pinsiders

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#103 7 years ago
Quoted from YeOldPinPlayer:

Seems like if I want to operate pinball machines I have to be willing to "take a loss" by not using that space for a more profitable game.

Welcome to reality.

It's a choice: Pinball or profit.

After 2 months of pinball consistently being the lowest earning category in my new arcade (including my massage chairs), I'm going to be trimming the pinball selection and purchasing games people actually want to put their money into.... basketball & skeeball.

#111 7 years ago
Quoted from Banker:

I had planned to buy every NIB, for the next several years. Money
was not an issue, but now unrealistic price gouging is an issue.

My sentiments exactly.

As an operator, and a collector, I was in for a pro and an LE version of every Stern/JJP release. No more. I don't make any real money as an operator, and the extreme recent price hikes have turned me off as a collector.

13
#120 7 years ago
Quoted from Dr-Willy:

The problem also isnt just the cost of the machine. Repairs and up keep also all factor in to this also.
If you buy a 5k pin and it pays for its self in three years and then you sell it for 3k yes you are ahead 3k, however if you apply the same situation to a claw machins its looks like thsi. Buy a 5k claw machine, pretty much gurenteed it pays for its self in the 1st year, then profit for the next 2 years. Sell claw machine for around 1k (ball park figures). You come out way ahead this way, plus claws require no maitence other then putting stuffed animals in.

Quoted from Erik:

As an operator don't pins resell for more than those other money makers after a few years?
Let's say you bought a Stern pro for 5k or some similarly priced ticket/toy dispenser that out earns pins and sold after 3 years. Even if the Stern went over like Avengers you'd still get back 3k. Would you get that back with the average ticket/toy dispenser on the resale market?
I have no idea about the prices of other gaming machines, so this is a legit curiosity.

First of all, it's really a poor analogy to compare pinball machines to a ticket redemption game, as it provides not only a physical prize for playing, but can be made more exciting, with more creativity than the simple limitations that a rectangular wooden box can provide.

As an arcade operator and arcade owner, I have more than enough physical & mathematical data to provide a real world analysis, not just a wild guess. I only compare pinball revenue to games without product or prizes.

For example: In a location on the strip, my $13,000 shooting game makes $916 per week while my $5,000 pinball machine averages $114 per week. I have to service the pinball machine at least once per month. I adjusted the guns once in a year in a half of operation and at 8x the usage.

In my arcade downtown, my $5,000 basket ball game makes $450 per week, while my $8,000 pinball machine makes $34 per week.

The basketball game will go at least a year without needing service, while the pinball machine requires at least monthly maintenance + repairs. All factored in, I don't care if I just put that basketball game in a dumpster in 5 years.

As much as I love pinball, I'm still running a business. And with the arcade, I have partners, so we may need to actually cut back our pinball selection for the good of the business.

#138 7 years ago
Quoted from brundaged:

I'm genuinely curious. I'm wondering what's different about basketball compared to pinball for his customers.
I imagine pinball players mostly play alone, since the way he has them arranged doesn't allow groups to form around them. It would be interesting to know if the more profitable machines were primarily played in groups.

Groups or singles is irrelevant as we get both into the arcade. The difference is a lifetime of exposure. Americans are exposed to basketball, in real life and on TV, at a very young age, and then on a regular basis throughout their lives. There's one in Chuck E Cheese, in Gameworks, in D&B, in the local laser tag place. Put the ball into the basket. No deep rule sets, no buttons to press, no thinking to be done. Just put the ball into the basket. On the other side, most people in my arcade, and at the arcade in NYNY, have NEVER played a pinball machine before. They are simply attracted to the recognition of the titles.

15
#153 7 years ago
Quoted from brundaged:

What do you think would happen if you took out half your pins so people could stand between them and watch while others played?

Two things... I suffer damage to the cabinet side art, and I'd lose half of my already dismal pinball revenue.

I didn't become successful by making bad decisions. So when I do remove half of my pins, that space will then be occupied by higher earning games. It's not my job to try to make pinball a spectator sport.

A half an hour after the very first collection on that basketball, I immediately ordered a second basketball game to link up to the first one for head to head competition. I also ordered a state-of-the-art dual skeeball set with insane LED lighting and an high score overhead. That $20,000 investment into 3 new games will earn me more money in a week than the $100,000 investment that I have into 16 pinball machines combined.

The bottom line is that higher prices are terrible for pinball. They've priced operators out of the market, and they're just pissing off collectors. I speak from the position of both.

#155 7 years ago
Quoted from flynnibus:

Has it been significantly different in profile vs your NYNY location?

Yes, significantly. But it's a completely different exposure. At NYNY my pinball machines are placed at the entrance to the roller coaster. So, I can expect a million people per year to see my pinball machines, based on the attendance of the roller coaster.

I don't have a globally recognized roller coaster in my 3,200sf downtown arcade, nor am I willing to purchase one to help increase pinball revenue.

#172 7 years ago
Quoted from jwilson:

That argument seems at odds with what you were saying about the Pinball Hall of Fame a few months ago, about how you'd run it differently - but it seems your way isn't working so you're going with basketball games. I guess Tim's way actually works.
It's nice to see some validation for him.

I would still run it differently. Tim has a long established career in pinball, and a long established business with PHoF. I've been open, as an arcade, for two months. Check back with me in 10 years.

Quoted from dotEXE:

I've seen him talking a lot of things that are at odds with what other operators say. He also claimed the 'only operators paying 12k for a machine would be in NY and Cali'. Meanwhile I know 3 operators from the Midwest who all have Dialed In LE/CE and Batman66 LE, even 1 SLE.
Bunch of bologna trying to talk for all operators everywhere just because he can't hack it.

NO, you haven't. Because I've never said any of those things, Troll.

I can't hack it??? You better check yourself.

#179 7 years ago
Quoted from jwilson:

Why would I bother? It'll be nothing but coin pushers and redemption by then. Those are easy.

Thanks Nostradamus. Any other dire predictions???

With 43 pinball machines, and over 250 arcade games in my inventory, I don't own any pushers, and only operate 4 ticket redemption pieces.... at the location's direct request.

Would you like to continue publicly exhibiting your ignorance, or shall we stop here?

#180 7 years ago
Quoted from dotEXE:

Or what? I'll be verboten from playing pinball at the illustrious NYNY? Remember this is an internet forum and keyboard fights get nobody anywhere.

There was no "or what", grow up.

YOU started a keyboard fight by lying, when YOU claimed I wrote something that, in fact, I did not. Anything less than an apology from you is disingenuous and pathetic.

#182 7 years ago
Quoted from dotEXE:

Definitely not sorry. You said JJP and Stern have priced operators out of the market. Here's the quote

I personally know 3 operators all with Dialed Ins and Batman66s ordered, including a BM66 SLE. I'm a collector and I'm not at all pissed about these prices. My WoZ RR was $10,000 shipped. These prices aren't new.
My point is, stop speaking for EVERYONE when you really meant "I have been priced out of the market, I am pissed off."

As an operator, I'm just not stupid enough to pay $9,000+ for an asset that is unlikely to ROI in a reasonable amount of time, while providing service nightmares for the entire life of the product.

As a collector, yes, I'm pissed off. But not because I can't afford the top of the line, but because the top of the line has exceeded it's value, to me, in my opinion. What you do with your money is your business. I've simply decided to allocate my expendable income on a Lamborghini Gallardo, instead of chasing after the most expensive pinball games ever manufactured.

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#184 7 years ago
Quoted from dotEXE:

That's a great stock image of a Lambo, something we can certainly agree on.

Why thanks. While I've definitively decided on a convertible, I haven't really decide on color yet. I'm leaning towards orange as shown above, or even in yellow.

I want something that stands out as I'm going to be using it as an advertising platform for my arcade.... you know, 100% tax deductible business expense and all that.

#186 7 years ago
Quoted from trunchbull:

"Fine!! Then I'll just buy a Lamborghini!!!"
what even is this hobby

Good point!!! When anybody decides to buy a Lamborghini over the latest pinball offerings.... well then maybe "the hobby" has out priced itself.... or maybe I've just decided to pursue a new hobby. I'm not sure.

-1
#193 7 years ago
Quoted from Sticky:

I want to support your business when I'm in Vegas at the end of the month but your attitude is turning me off.
Plus you're buying a Gallardo over a Huracan? And not even an LP560 but the old, old one with the crappy 5.0? You need more customers.

My only attitude was to make it clear that current pricing has gotten out of line, and I'm simply not willing to support these price points. Since June 2014, I've spend more than $250,000 on pinball machines and mods. Nearly $200,000 of which was NIB. You???

Furthermore, I even agreed to take a pathetic split percentage just to get a bank of 10 pinball machines into a major Las Vegas strip casino where they are seen by more than one million people annually.

Then to top it all off, I place 16 pinball machines into my new arcade for public play, most of which were HUO Limited Editions, even though I could make 3x the amount of money with different equipment, while not devaluing my personal collection.

But you don't like my attitude.

Please just go to the PHoF when you're here. I'd rather see your money go to charity.

#195 7 years ago
Quoted from Sticky:

We all know the current pricing has gotten out of line.
Are we supposed to be impressed about you bragging about an old Gallardo in that context or something? You throwing it out there for what, virtual pats on the back?
Yes, great, you put 10 pinball machines in a good location. And?
Yep, your attitude seems to be the biggest problem facing your business. Not pinball.

Great, I'll see you at Tim's place then. Cheers.

#216 7 years ago
Quoted from Sticky:

It seems it ruffles feathers when you point out his hypocrisy or whining.
Screw this, I'm going to go buy a Lamborghini.

So are you actually going to contribute to the topic of discussion, or just troll it with rhetoric?

#229 7 years ago
Quoted from ExtremePinball:

So are you actually going to contribute to the topic of discussion, or just troll it with rhetoric?

Quoted from Sticky:

I'm sorry. I forgot the topic was about spending money on used Lamborghinis instead of pinball machines.
Toss up a few more Gallardo pics.

So then.... no. Ok.

The topic being discussed is that increasing prices is terrible for pinball. And I agreed that it is. Then I presented a real-world example of exactly how it's terrible for pinball. That the inflated price points have turned off some of us who can easily afford such toys, but have chosen to boycott the obvious collusion in pricing.

I made the mistake of stating where my money was going when I stated that I decided to reallocate my discretionary funds from the hobby of pinball, to an advertising medium that supports & promotes my arcade. This obviously upset you. Had I posted that I was using my money to buy a large array LED sign to promote my arcade, you likely would not have had such criticism.

So, I apologize for upsetting you, and I trust you'll enjoy the latest pinball offerings by supporting these price levels.

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