(Topic ID: 138631)

Has Stern priced itself out of non US markets?

By clg

8 years ago


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  • Latest reply 8 years ago by kvan99
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    There are 89 posts in this topic. You are on page 1 of 2.
    #1 8 years ago

    The US$ has done quite well recently against most currencies as interest rates are finally supposed to go up. Locally this doesn't mean much to me because most things I buy are not from the US. Pinball is the glaring exception.

    Out of the US I think it is fair to say most countries are stuck with their local Stern distributor and there is no competition. In New Zealand that means that we are asked to pay MSRP and then some. As we know MSRP keeps going up. What this means practically is that a GOT LE is going for something like 16k. To put that in perspective that is enough to buy two very good quality TZ's with change left over for a decent third game.

    Bottom line is the people I know that used to buy NIB sterns or might buy them are mostly out. Am I correct in thinking this is happening in other countries too? If I am, I wonder if Stern will be able to keep that big new factory busy if there is a significant drop off in overseas sales.

    #2 8 years ago

    Buy whatever gizmo it takes to get 120V 60hz power, then buy games though a friend in the US.

    #3 8 years ago
    Quoted from metallik:

    Buy whatever gizmo it takes to get 120V 60hz power, then buy games though a friend in the US.

    Yep that is where things are headed. I am heading to the states next year and was looking to come back with a few new games... Importing is a hassle though and the stupid locks stern put on their games will cost 200 per game to defeat.

    27
    #4 8 years ago

    They may be pricing themselves out of the US market. I know they have priced them out of mine.

    #5 8 years ago
    Quoted from o-din:

    They may be pricing themselves out of the US market. I know they have priced them out of mine.

    I have to agree. I've had it with the price of new pins. Just too rich for my blood.

    #6 8 years ago
    Quoted from o-din:

    They may be pricing themselves out of the US market. I know they have priced them out of mine.

    Sadly, Count me in on that also.

    #7 8 years ago

    It doesn't bother me much as they really haven't made anything I would be interested in in quite a while anyway. So it works out just fine.

    #8 8 years ago

    Good point on the US market! I'm aiming to buy some used, but newer, sterns to bring back.

    #9 8 years ago

    Here in Australia a few people I know that would have jumped on a GoT LE a year or two ago, were pinning their hopes on the GoT pro as an alternative due to the 30% price rise. Unfortunately because Stern in their wisdom decided to make the pro a very poor, stripped down version of the game, these people now won't be buying any version of GoT at all.

    Stern if you are listening you need to stop stripping the Pro of major game features like the upper playfield or you are going to loose your international market all together!!!

    #10 8 years ago
    Quoted from clg:

    I'm aiming to buy some used, but newer, sterns to bring back.

    Be sure to pick up a hearse while you're here to ship them in.

    #11 8 years ago

    This is why major exporting countries such as Japan fight to keep their currencies down. This is not just a problem for Stern. It hurts Apple, HP, GM.. any exporter is getting less competitive in international markets. And getting directly from the U.S. is not really going to save much. It might remove the gouging from the monopoly distributor, but the big chunk of difference is still in the currency.

    #12 8 years ago

    GOT LE here in Canada will be close to 11,500.00 or more depending what province you live in here.
    Believe me there are a lot of people not buying here right now

    #13 8 years ago

    Only until people stop buying...games still sell, then the price will stay.

    Wish it weren't so high (seems like it has really jacked up in the last 1.5 yrs), but I don't see a scenario where it will drop.

    #14 8 years ago

    People not buying will definitely be happening here!

    I just got pricing for GOT pro 10,200. In contrast Metallica was 7,200. Slight difference between those two pro models too!

    #15 8 years ago

    Yes, it's very easy to look at history and see what will happen here, All market bubbles end the same way. JJP needs prices at 8-9K to stay profitable, Stern just moved to a bigger warehouse (bigger overhead, investors requiring a return) and raised the prices how many times now? All while cutting costs from the games. This trend will sustain itself for a while but soon after the market will get saturated and sales will decline. We have Stern, Spooky, DP, PPS and JJP all competing for that same pie, granted this is a resurgence of pinball but how much will it impact the over all market? 6-8 titles a year....where are all the buyers going to come from at 5-9K a game? The death of pinball came from video games, now this resurgence has to contend with much cooler video games, along with new tech like Oculus and cell phone apps. Making pinball is hard, selling pinballs at these prices is harder.

    #16 8 years ago

    The biggest part of the equation right now is the US dollar value in relation to foreign currencies. Stern can't do anything about that, or JJP, etc., for that matter. Stern's games have crept up in cost, but the biggest problem is the strong dollar exchange rate right now. The exchange rate might end up being a huge problem for Stern if it stays that way for long. I seem to recall reading previously that a large segment of Stern's historic sales are overseas. Nearly half maybe, but I can't remember for sure? Sales have got to take a hit if that's the case. GOT's popularity could possibly have largely overcome that if it wasn't hit with an ugly stick. I think GOT will still do better than average, but good grief what a massive lost opportunity to make the game look irresistible.

    #17 8 years ago

    The bubble for NIB pins is going to burst at some point.

    #18 8 years ago

    ^^^Agree completely kvan999 ^^^

    #19 8 years ago
    Quoted from ForceFlow:

    The bubble for NIB pins is going to burst at some point.

    I think they will need to change their pricing. Demand for pins is finite . For the kind of money they are asking for now someone will really need to love the theme, love the game, have too much money, or is a newb wanting the latest and greatest getting caught up in the hype machine.

    I guess pinball could take off on location adding to demand but that is a bit of a long shot unfortunately

    #20 8 years ago

    Yes. The pricing is out of control. Not much we can do at thisn point. Need more good competition. Lucky I am in the US and can afford it at this time.

    #21 8 years ago
    Quoted from taz:

    The biggest part of the equation right now is the US dollar value in relation to foreign currencies. Stern can't do anything about that, or JJP, etc., for that matter. Stern's games have crept up in cost, but the biggest problem is the strong dollar exchange rate right now. The exchange rate might end up being a huge problem for Stern if it stays that way for long. I seem to recall reading previously that a large segment of Stern's historic sales are overseas. Nearly half maybe, but I can't remember for sure? Sales have got to take a hit if that's the case. GOT's popularity could possibly have largely overcome that if it wasn't hit with an ugly stick. I think GOT will still do better than average, but good grief what a massive lost opportunity to make the game look irresistible.

    Stern has some flexibility and could rethink its margins if it wants to. Would it rather sell 100 pins with a 200 margin or 200 pins with a 100 margin. Selling more pins is good for stern as it keeps the line going and lowers incremental costs. They don't need to keep prices the same in every market. Most other manufacturers take approaches like this. Car prices are far less volatile!

    #22 8 years ago
    Quoted from clg:

    Out of the US I think it is fair to say most countries are stuck with their local Stern distributor and there is no competition.

    Fair to say here as well. Seems we have to deal with two intermediates, one importer and distributors. I was pointing out price differences between LE prices in the US (not MSRP, real prices paid) to prices here, sales tax included (up to... 9890 euros).
    Answers on our local forum: "you forget shipping which is very very expensive by boat"
    Geez. You know nothing, John Snow...

    But... it seems there are suckers at any price, so they may still sell some LE or Premium. But on location? Coin ops are dying here (literally - many are relatively old and won't be replaced) and they simply have stopped buying new games, including Pros.

    #23 8 years ago

    I have been buying new pros for location, but I am undecided about got due to the stripped down-ness of the pro. One thing I don't understand is spike games have a qtr of the wire and electronics of Sam but cost more ?

    #24 8 years ago

    AC/DC seems to be the cheapest Stern Pro in Australia at $5950, when the Australian dollar was good. KISS Pro is now $7950. Based on photos for Game of Thrones Pro, $7950 seems far too expensive for what is included on that playfield. There is also an extra courier cost on those prices. Over $8000 for the delivery of a Stern Pro. I thought these prices were high until I saw New Zealand and European pricing! Hopefully Stern offers discounts to these markets in the future, but I really can't see it happening.

    I can't see a sustainable future for pinball with continued price rises, three new titles a year and a backlog of code development for all these new games?

    #25 8 years ago

    im going to start boot legging games to Canada. I will just bribe the border guards with doughnuts and whisky.

    #26 8 years ago
    Quoted from Chrizg:

    I have been buying new pros for location, but I am undecided about got due to the stripped down-ness of the pro. One thing I don't understand is spike games have a qtr of the wire and electronics of Sam but cost more ?

    paying for the cost of the new plant. buildings cost a lot of money.

    #27 8 years ago

    When I first got in to pins a few years back NIB prices were high but at a price where i thought a pro would be doable for the right theme, now they are at a price where it's just way to high for me to consider ever buying one.

    #28 8 years ago
    Quoted from clg:

    Good point on the US market! I'm aiming to buy some used, but newer, sterns to bring back.

    At 64 cents to our dollar, not economic to do that either.....

    Quoted from Craig:

    Be sure to pick up a hearse while you're here to ship them in.

    That's some genius advice right there.

    rd

    #29 8 years ago

    I would say all nib machines are like that in Canada.

    I can't say about places in BC,sask,man, ont and que.

    But here in Alberta Canada. Oil and the energy sector is the driving force of our economy and lots of workers from out east were the first to get axed. Then ppl in Alberta lost their jobs or loss wages. But in all honesty. We had it too good for a while.

    #30 8 years ago
    Quoted from rotordave:

    At 64 cents to our dollar, not economic to do that either.....

    rd

    Hoping the exchange rate will be better but I can route it for 6 months and the economics get resonable. That is assuming I can find good used games. Since metallica sterns are getting a lot rarer in NZ and this is one way of getting them in.

    #31 8 years ago
    Quoted from ForceFlow:

    The bubble for NIB pins is going to burst at some point.

    20 year cycles for pinball. 70's, 90's and now. It can't sustain this for long.
    In Australia HUO buyers are getting less and operators are siting less and less. Don't get me wrong I love pinball and hope it lasts but I fear it can't.

    #32 8 years ago
    Quoted from jokerpoker:

    20 year cycles for pinball. 70's, 90's and now. It can't sustain this for long.
    In Australia HUO buyers are getting less and operators are siting less and less. Don't get me wrong I love pinball and hope it lasts but I fear it can't.

    That is the saddest part. If I can't afford to own it, will be able to play it on site....not if it costs too much money for the operator though. That is a real problem. The last time I checked, only one sited KISS Pro in Melbourne? When AC/DC was released, they were a dime a dozen.

    #33 8 years ago
    Quoted from ahdelarge:

    That is the saddest part. If I can't afford to own it, will be able to play it on site....not if it costs too much money for the operator though. That is a real problem. The last time I checked, only one sited KISS Pro in Melbourne? When AC/DC was released, they were a dime a dozen.

    I mainly agree but acdc is a bad comparison, acdc Is the dream aussie pub pin theme.

    #34 8 years ago

    I thought competition would reduce prices, but rather Stern thinks it can up them to JJP levels. As Stern machines are far inferior quality and BOM-wise, I won't be buying anymore NIB for a while.

    Ultimately market forces will iron this out. If Stern can sell enough machines in the US, they won't care about ex-US. If sales fall dramatically across the board, then so will their prices.

    For now, Stern has lost my custom.

    On the plus side, this will raise interest in EMs and other machines that don't 'cost a car'.

    #36 8 years ago

    First of all the answer is YES!

    A GOT LE will be offered in Germany for 9375 € with the current exchange rate - this is about 10.600 $. To be fair a 19% VAT is included.
    But nevertheless prices went up extremely. About one and half years ago we had...

    Pro 5k ... "grey import inside the EU" 4,5k
    Premium 7k ... 6,5k
    LE 8,4K ... 7,4k

    Roughly... not 100% sure...
    Now 9,4k for the LE, 5,8k for the Pro and most probably 8k for the Premium.

    I bought several NIBs in the last years, but I am definitely out. If you have some money to spend, there are so many alternatives (not only in pinball) My next machine will be a Star Jet

    #37 8 years ago
    Quoted from frg:

    My next machine will be a Star Jet

    My next machine is Amazing Spiderman. Arrives this week.

    rd

    #38 8 years ago
    Quoted from Chrizg:

    I have been buying new pros for location, but I am undecided about got due to the stripped down-ness of the pro. One thing I don't understand is spike games have a qtr of the wire and electronics of Sam but cost more ?

    For the first time in a while, the Pro makes sense as a location-only machine... Unless its in a place catering to pinheads, most people that will drop a couple bucks in it will have no idea there is a Premium or LE.

    #39 8 years ago

    If foreign sales are truly a major part of Stern's business, they should be looking at setting up an assembly factory in Europe and/or Australia, and sourcing parts from low cost countries. I don't like the idea of American jobs going overseas but there aren't many options for a global business that has true competition.

    Stern probably isn't at a point yet to take this route, so is focusing instead on scaling up with more pins and a larger factory, and designing a lower cost system like Spike. My guess is that they have a good bit of room to come down in price with these changes but haven't seen sales/profits tip the other way yet despite the currency changes. Maybe they will lower pricing when they have some real competition which doesn't exist today. Sales from the other companies are a drop in the bucket so far.

    #40 8 years ago
    Quoted from luckymoey:

    , they should be looking at setting up an assembly factory in Europe and/or Austrialia, and sourcing parts from low cost countries.

    Labour is not cheaper here, and parts are probably already sourced from low cost countries.

    Quoted from luckymoey:

    Maybe they will lower pricing when they have some real competition which doesn't exist yet.

    I hope Heighway will kick them hard with their swappable playfield concept because games on location are simply going to vanish here at current Stern prices. Stern seems to be on a "Milk them as much we can while we can" logic.

    #41 8 years ago
    Quoted from mrgone:

    paying for the cost of the new plant. buildings cost a lot of money.

    Well that was a bad business forecast on Sterns part. I'm not paying for their improvements, I'm paying for the best bang for the buck pin designs. GoT is a ( visual) disappointment. I forecast that unless rules are already finished, then this title will be.

    I've been hard on Stern because I've experienced hit titles nib, but I'm done giving them the benefit of doubt. They need to release a completed ( at fricken least mostly completed!) title not based on bom.

    Strong license doesn't mean strong sales regardless of laziness and greed.

    NEXT!

    #42 8 years ago
    Quoted from jlm33:

    Labour is not cheaper here, and parts are probably already sourced from low cost countries.

    They may be able to save on shipping, duties or labor in eastern EU. I'm responsible for factories in Germany and UK, and you're right that labor certainly isn't cheaper in western EU. Regardless, doubt they are big enough to take on the overheads of a second operation. Better to leverage their existing operation. They are just not scaled up yet within their new factory and apparently have no driver to pass on any cost savings.

    #43 8 years ago

    If stern wants to build games cheap they need to go to Asia. They can export every where from there. They would probably keep prices the same though and pocket the cash.

    #44 8 years ago
    Quoted from luckymoey:

    If foreign sales are truly a major part of Stern's business as that always say, they should be looking at setting up an assembly factory in Europe and/or Austrialia, and sourcing parts from low cost countries. I don't like the idea of American jobs going overseas but there aren't many options for a global business that has true competition.
    Stern probably isn't at a point yet to take this route, so focused instead on scaling up with more pins and a larger factory, and designing a lower cost system like Spike. My guess is that they have a good bit of room to come down in price with these changes but haven't seen sales/profits tip the other way yet despite the currency changes. Maybe they will lower pricing when they have some real competition which doesn't exist yet. Sales from the other companies are a drop in the bucket so far.

    The answer for cheaper pins is to manufacture in Asia or South of the US border.

    #45 8 years ago
    Quoted from mrgone:

    im going to start boot legging games to Canada. I will just bribe the border guards with doughnuts and whisky.

    Will you take our $CAD at par?

    #46 8 years ago
    Quoted from luckymoey:

    If foreign sales are truly a major part of Stern's business as that always say, they should be looking at setting up an assembly factory in Europe and/or Austrialia, and sourcing parts from low cost countries. I don't like the idea of American jobs going overseas but there aren't many options for a global business that has true competition.
    Stern probably isn't at a point yet to take this route, so focused instead on scaling up with more pins and a larger factory, and designing a lower cost system like Spike. My guess is that they have a good bit of room to come down in price with these changes but haven't seen sales/profits tip the other way yet despite the currency changes. Maybe they will lower pricing when they have some real competition which doesn't exist yet. Sales from the other companies are a drop in the bucket so far.

    This is interesting....Gary Stern did visit the Homepin factory in China. Not a silly concept.

    #47 8 years ago

    IMO the question in the thread title should be in the past tense.

    Has Stern priceED itself out of many international markets?

    YES.

    Considering many jurisdications (heaven forbid) pay taxes on their purchases, add in an unfavorable exchange rate as well as seemingly relentless price increases for increasingly unfinished and cheapened products... honestly I am surprised they are getting many international orders at all outside of the millionaire "gotta have it" class.

    #48 8 years ago

    Does everyone have an affordable figure in their head? I always say that the $5950 AUD AC/DC Pro was the sweet spot for me.....expensive for a toy, a price I can stomach for a new in box pinball.

    #49 8 years ago

    Im out, just outrageous ...sadly

    #50 8 years ago
    Quoted from ahdelarge:

    Does everyone have an affordable figure in their head? I always say that the $5950 AUD AC/DC Pro was the sweet spot for me.....expensive for a toy, a price I can stomach for a new in box pinball.

    I guess sweet spot is relative given currencies but ACDC/Metallica were OK for price and what you got. It has been going downhill since then though to GOT which pricing wise is a joke for what you get. I think sales of sterns in NZ would follow that, decline since then with only a couple KISS coming over. I wonder if there will be any GOT.

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