Although I would like to pay less for a pinball machine I still think distribution is key to the overall health of the hobby. Yes back in the days some distributors where content on making a couple hundred bucks on a game. Many larger brick and mortar distributors were unable to sell machines for a couple hundred bucks profit and still maintain profitability. I think some people do not understand how much effort and work often goes into a pinball sale. If there is a defect or problem it takes a considerable amount of time and effort to correct the problem(Not worth $200 profit).

The other part of how distribution helps is to help pinball manufacturers make it's turns in a timely fashion. Pinball manufacturers sell out most runs directly to distributors willing to take additional allocation of machines. The distributors then have to hold the machines until they sell, meanwhile paying rent, taxes, wages and fees. The holding cost alone makes minimum margins necessary in order to keep the doors open. This allows pinball manufacturers the ability to keep producing new titles for the public without having stagnant inventory clouding the books.

Now we have the major reason for local distribution: Help increase awareness by having machines set up in a showroom to play and try out before purchasing, having a personal contact for any issues, supporting small businesses, helping with local pinball shows(again-awareness), etc.

People think pinball is exploding and super popular- well it is not. Still a boutique hobby with limited amount of people willing to fork over thousands of dollars for a machine. We NEED distribution to grow the hobby and keep it alive.

Stern does 'runs' usually 100-200 machines at a time. Right now they have backorders-which is great. So in a way they are producing based on demand.

Can the market continue to take all of the $7000-$9000 machines being produced? Time will tell, I think once the economy slows down-we will see a slowdown in pinball as well. It is all about supply and demand, people thought WOZ was overpriced when it first came out. Then people started defending WOZ pricing stating it was packed full of features and that's why it was priced so high. I think Jack lost his ass on the first couple runs because he did not realize the true cost to manufacture. In a weird way WOZ started the high end pricing. People want something special and are willing to pay to have the best. All LE's or Special Editions will sell at x price upon release but if they are a dud- the market will determine pricing. WWE LE has taken a huge hit, again supply and demand determine pricing.

They are allowed to do both. Most distributors started of as OP's and still have some of their routes. All of the distributors I know all have a side business-very smart. The key to success in business is to have your hands in as many people's pockets as possible.

It all comes down to logistics. Some of these newer boutique games are quite complex and require a 'local' rep or technician for help with issues. Many pinball owners are not on Pinside and do not have someone to hold their hand. There are so many parts and components involved in a pinball machine that it is almost inevitable that a issue will arise over time. If a Boutique Pinball manufacturer tried to go about it themselves I am afraid they would shoot themselves in the foot. Trying to find technicians in certain regions, taking all of the calls, and trying to support product directly would take a considerable amount of personal and time. Pinball machines need to have distributors to support the service aspect, just too complex of a machine not to have distribution.

I started thinking about Nic's venture to expand his brick and mortars in major cities. I personally do not see this as a successful business model and I would not walk away from investing I would run. Problem here again is logistics. So many variables in a brick and mortar location. Location, location, location is a major factor for opening a store front. The cost per square foot in a desirable location is ridiculous, profit margins have to be very good in order to afford monthly rents, fees, etc. Then you have the whole issue with trying to find 'qualified' personal to run these brick and mortar locations. Right now with the economy being on an upturn it is very difficult to find qualified applicants that are willing to work for x wages. Not to mention that again pinball is a boutique hobby and there have been distributors covering these territories for decades. Talk about stepping on someone's toes.

Seems like a logistical nightmare, trying to find a tech to go to someone's house in the boonies. Levi lives in a major city and he just set up a machine. What about having a major issue with JJP POTC that requires removing the upper playfield. Most newbies are not comfortable doing that, and having a local distributor's technician come out and fix under warranty is reassuring when you are spending the same amount on a pinball machine that you could purchase a car with. Again-logistics

I was just about to say in his thread- hey Nic-'What does Gary think of your plan?' But I already knew the answer.

I am torn because I have been on both sides of the fence. I personally have a difficult time paying full retail and I have drawn a line in the sand at $8000 for a pinball machine. I now am priced out of my budget- I have a Munsters LE on my radar but I am not willing to pay a crazy price. What these recent increases in pricing have done to me is make me want to find some deals on older titles. So many choices-which is good.

I think Stern could protect map pricing for x amount of days after initial release-(Say 90 days) after that throw the distributors a bone by allowing them to sell at whatever price so they can clear there stagnant inventory and purchase more newer machines-keep the cycle going.

I have also had the idea that OP's get a special price compared to consumers. Operators are the lifeline of pinball, and deserve a discount. If you have a copy of your contract and can get notarized or approved by a local distributor then you get OP pricing(Say $500-$700 off retail MAP). Just a thought

Wouldn't that be great! It actually may help increase the amount of operators and locations. Honestly most established OP's already get a under the table deal but if they legitimize the process it may encourage more location pinball. What would requirements be? Contract between OP and location, business license, and an agreement to have on location for x amount of time. OP's should not pay anywhere near full MAP pricing.

I would like to see Stern lower their retail prices. I think they may sell more units and keep the hobby healthy. All of us are cheap bastards that want to save money-who doesn't? What would be nice is if you could buy local and pay the same amount including taxes. I know the tax laws are changing to address this but eventually pinball purchases will be more local driven and people will(and ought to) want to buy local for technical support and also to help support the local economy in that area.

Wrong- Distributors are being threatened to lose their distributor rights if they do not follow guidelines, it has become a good ol boy network with everything done on the phone, nothing in writing.

You don't know Gary

Yes distributors will occasionally flex the rules. If you get an exception and get a deal-please keep it to yourself. Loose lips sink ships