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(Topic ID: 228650)

Price Increase On NIB Stern Machines In Australia


By ausretrogamer

1 year ago



Topic Stats

  • 26 posts
  • 15 Pinsiders participating
  • Latest reply 1 year ago by ausretrogamer
  • Topic is favorited by 2 Pinsiders

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    Screen Shot 2018-11-04 at 9.41.57 AM (resized).png
    DP (resized).png

    #1 1 year ago

    With a weaker $AUD, it was inevitable that pinball machines imported from the US were going to go up in price. Wonder if they will come down just as fast when the $AUD becomes stronger.

    Anyway, At $8,850 for a new Stern Pro, it's getting tougher to justify a purchase

    DP (resized).png
    #2 1 year ago

    There hasn't been a price decrease in ten years for NIB Sterns from the local sole "authorised" Australian distributor and our dollar has been as low as .60c and as high as 1.09 against the greenback in that time.

    Draw your own conclusions.

    Or just keep on buying and complaining when the price points keeps rising - it has no impact with my pricing structure on the secondary market besides being able to offer a wider range of titles below local NIB entry points.

    EDIT: You would think a business which imports on such a regular basis would have the foresight to engage in forex currency hedging? Obviously not when titles currently in stock have also been affected in price by our "volatile exchange rate". LOL.

    #3 1 year ago

    The current stock (going up in price) part definitely got the spidey senses tingling. Some titles are from a year ago & they’ve somehow spontaneously increased in price.

    #4 1 year ago

    I’m not sure how they calculate the local price, but that’s not too far off the US price at an exchange rate of 0.71/AUD. Retail US price is $5799 for a pro, Converted to AUD is about 6200. You have to figure that there is a shipping price to get the games from stern to the distributor, maybe $200-300 per game? I’d assume there might be a bit of a supply/demand premium as well given more limited distribution.

    Quoted from ausretrogamer:

    With a weaker $AUD, it was inevitable that pinball machines imported from the US were going to go up in price. Wonder if they will come down just as fast when the $AUD becomes stronger.
    Anyway, At $8,850 for a new Stern Pro, it's getting tougher to justify a purchase
    [quoted image]

    #5 1 year ago

    This comes up all the time in Canada, people accusing whomever of price gouging, but every time I run the numbers, the money is made up on the dollar and the taxes, not gouging.

    In this case, Deadpool Pro $5799 US = $8043. and the GST gets added, another 10% = $8847, bang on your listing. And that's with someone going through the trouble of international shipping.

    Screen Shot 2018-11-04 at 9.41.57 AM (resized).png
    #6 1 year ago

    Why pay retail? Become a route operator and commit to buying just 24 machines a year and get your 35% off retail price. Plus free swag.

    #7 1 year ago

    Some nice profits there.

    #8 1 year ago

    I'd be more worried about having reliable wireless service from Telstra. Holy cow what an outage.

    #9 1 year ago
    Quoted from Lermods:

    Retail US price is $5799 for a pro, Converted to AUD is about 6200

    They wish.

    $5799 x 0.71 exchange = $8167

    Container freight (based on a full container) say $250 per unit, by the time you add on all the fees etc.

    However, that’s sort of worked out backwards...

    You start at the wholesale and work from there.

    I’m not sure what the latest FOB wholesale is, so I won’t speculate numbers.

    rd

    #10 1 year ago
    Quoted from rotordave:

    They wish.
    $5799 x 0.71 exchange = $8167
    Container freight (based on a full container) say $250 per unit, by the time you add on all the fees etc.
    However, that’s sort of worked out backwards...
    You start at the wholesale and work from there.
    I’m not sure what the latest FOB wholesale is, so I won’t speculate numbers.
    rd

    My math was backwards, seems there is quite a bit of markup. Is supply more limited down under that distros can charge so much more?

    #11 1 year ago
    Quoted from Lermods:

    My math was backwards, seems there is quite a bit of markup. Is supply more limited down under that distros can charge so much more?

    There is only one distributor per country.

    The price is fixed. No discounts or “street prices”. Also remember that the advertised price includes the 10% GST tax.

    The final markup isn’t huge. In fact, compared to other consumer items it’s small, like around 15% small. For that 15%, you have to warehouse, distribute, and sort out warranty issues. Not a lot of markup at all when you consider that.

    Australia does sell a lot of NIB Stern pins though, so it’d add up.

    rd

    #12 1 year ago
    Quoted from frolic:

    This comes up all the time in Canada, people accusing whomever of price gouging, but every time I run the numbers, the money is made up on the dollar and the taxes, not gouging.

    Every time I run the numbers it shows the games costing significantly less in the USA.

    In fact, most of the guys who have been into the hobby for a long time will travel to the USA to buy their games there and save money.

    You've probably got a good relationship with your distro and may receive lower prices... certainly you have incentive to defend them in online forums.

    #13 1 year ago

    How much do you guys make per hour?

    #14 1 year ago
    Quoted from Maken:

    You've probably got a good relationship with your distro and may receive lower prices... certainly you have incentive to defend them in online forums.

    Yes, you can buy a new machine in the states and ship it back. But you can’t just plug it in and play it ... they are region zoned.

    I’ve done all the sums a dozen times. Here they are for an Aussie. These figures are ballpark but they’d be pretty close.

    The maths:
    New pro “street price” say $5600 USD = $7887 AUD
    Drive it to the depot $0
    shipping it LCL $600 by the time you add all the fees and add ons
    GST payable when it lands $788
    Pirate board to make it work $250

    = more than what AMD charge.

    If they were cheaper, there would be new pins flooding into Australia.

    The one guy did do it, he got the pins at a wholesale rate and shipped in containers (much cheaper) - that would work out less of course. Eventually he got shut down. But one guy buying one pin at US retail and shipping it - the maths doesn’t add up.

    rd

    #15 1 year ago

    how does the region zoning work? how do they detect / disable the game from working in another country?

    #16 1 year ago
    Quoted from russdx:

    how does the region zoning work? how do they detect / disable the game from working in another country?

    Mains AC frequency.

    #17 1 year ago
    Quoted from rotordave:

    Are you meaning me?

    Nope, was referring to the person who I quoted.

    #18 1 year ago
    Quoted from Maken:

    Nope, was referring to the person who I quoted.

    Weird. That quote wasn’t showing before.

    Frolic would certainly have a good relationship with his distro! Customer of the year!

    rd

    #19 1 year ago
    Quoted from lordloss:

    How much do you guys make per hour?

    Australian wages vary significantly.

    We are supposed to be "The Lucky Country" but unfortunately we get taxed to the hilt, very high cost of living down under.

    Current minimum wage is $18.93 an hour, or $719.20 a week. $37,398 pa

    Specialist professionals can achieve well over 3 times this.

    Rank Industry Role type 2018 salary pa

    1 Information & Communication Technology Architects $138,144
    2 Engineering Management $133,927
    3 Information & Communication Technology Management $132,307
    4 Mining, Resources & Energy Management $131,462
    5 Legal Generalists - In-house $128,988
    6 Accounting Strategy & Planning $128,373
    7 Accounting Financial Managers & Controllers $126,906
    8 Construction Management $126,122
    9 Construction Project Management $124,603
    10 Insurance & Superannuation Management $124,432

    Tax is killing us

    The current tax-free threshold for resident individuals is $18,200, and the highest marginal rate for individuals is 45%. In addition, most Australians are liable to pay the Medicare levy, of which the standard is 2% of taxable income.

    #20 1 year ago
    Quoted from ausretrogamer:

    The current stock (going up in price) part definitely got the spidey senses tingling. Some titles are from a year ago & they’ve somehow spontaneously increased in price.

    Sounds like the classic boiling frog pricing strategy but I'm pleased to see someone else noticed.

    Quoted from rotordave:

    The one guy did do it, he got the pins at a wholesale rate and shipped in containers (much cheaper) - that would work out less of course. Eventually he got shut down. But one guy buying one pin at US retail and shipping it - the maths doesn’t add up.
    rd

    That "one guy" was openly reselling them for below AMD distributor pricing and still turning a profit so little wonder the distro got on the phone to Gary in Chicago to shut down the supply. We wouldn't want end consumers to know that there is actual flexibility on MSRP here.

    As an aside, "grey import" Sterns are still arriving in limited numbers down here primarily for personal collections rather than resale but the group of participants involved now have the acumen to be much more discreet about it.

    And given the way the current Australian pinball scene is structured across multiple facets that's unfortunately how a majority of pinball related business is forced to transact down here.

    #21 1 year ago

    The same is true in the UK, we are being gouged there is no doubt about it (although I don't know if this is stern or our disty electrocoin (the latter of whom add zero value at all!)).

    Pinball's shipped to the western EU countries are much cheaper to the point where quite a few Brits (not me but friends of mine) have imported from the EU (EU law means companies can't interfere with pricing), lets take the last two releases.

    All prices include tax and shipping to your door. To ship from France adds more shipping costs than from UK, I've included that in the pricing below.

    UK dealer price EU Dealer price (5th November VISA (retail) exchange rate)
    DP Pro £6,495.00 £5,713.21
    DP Pre £8,695.00 £7,513.21
    DP LE £9,995.00 £9,322.01

    IMDN Pro £6,495.00 £5,449.15
    IMDN Pre £8,695.00 £7,221.52
    IMDN LE £9,995.00 £9,322.01*

    (*there is no price listed for IMDN LE in the EU as its sold out so I've assumed same price as Deadpool but I actually think it was a few hundred euros less).

    These include door to door shipping from Western EU states (Germany, France, Benelux) to the UK.

    Currently the UK LE price of £9995 is fine with me, but if it crosses the 10K mark I'll be importing from EU too, £10K is my absolute top limit for pinball machines even though I could easily afford a lot more.

    Pinball Heaven our retailer here in the UK is excellent in supporting us and varies pricing he gets almost daily on an exchange rate basis but he just isn't getting the support from his suppliers to price better but there is no doubt we are being ripped off. Its pretty depressing to be treated like that.

    Cheers,
    Neil.

    #22 1 year ago
    Quoted from NeilMcRae:

    Currently the UK LE price of £9995 is fine with me,

    That’s $20,000 NZD!

    Ours are $15,000. Including our GST (vat)

    That’s a big difference.

    I won’t even pay the $9,900 NZD for a pro (Approx £5,070) so no way I’ll pay $15,000 for an LE - $20,000 is friggin mental.

    $20,000 would buy 8-9 classic SS pins. I know what I’d rather have ...

    At the end of the day, if the UK pinball community all banded together and stopped buying from the UK guy, he’d have no choice but to either drop his prices or lose the agency (from lack of sales)

    rd

    #23 1 year ago

    Well the claim is that the home use market isn't so big, I think thats bullshit because I don't see hundreds of pins going on locations; and a couple of the big location route companies rarely buy NIB.

    And now you've made me feel worse about the gouging! LOL

    #24 1 year ago
    Quoted from MrBally:

    Why pay retail? Become a route operator and commit to buying just 24 machines a year and get your 35% off retail price. Plus free swag.

    It can't be 35% off???

    #25 1 year ago

    Thinking about this a bit more, the aud price is not that much different from the usd price all things considered.

    8850AUD = $6370. The price quoted included gst.

    If you take the US retail price of $5799 and add sales tax of say 6% you get a price of about $6150. Add $300 for shipping and you are now over the AUD price. Wasn't clear if there was a shipping fee in the original post.

    In the US sales tax isnt paid if buying from an out of state vendor, but it doesn't appear the msrp is all that different.

    #26 1 year ago

    Price excludes shipping.

    The sneaky part in all of this is the increase in price of older games / older stock (like Stern’s Star Wars) that were purchased with a stronger AUD over a year ago and now they’ve gone up too - it doesn’t make sense.

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