The other day I was reading as usual, seeing posts about things being more expensive, anger over Stern price increases..... you know, the usual.
It occurred to me that probably much of the anger or disappointment revolves around the prices getting higher but the product is the same. That's understandable, it's less value.
So I began to wonder.... if prices continue to go up, and reaches a "new normal" at some unknown ceiling...... wouldn't (at some point) that also translate to increased build budget for the pins themselves? We hear about mechs being cost cut and things removed/toned down from time to time.... with a higher price point, that (should) mean the build of material $ put into a game is also increased. Unless they (Stern) intends to just pocket the difference, but I don't know if they can do that long term. The value proposition of anything has to reach an equilibrium in all things or it fails (or at least goes into serious decline). What do you think?
In the case of pins (if they follow other industries), then the ratio is somewhere between 1-6 and 1-10 on the markup of parts. Since Stern pin prices have increased 1K-3K (Prem & LE's) and still increasing further, would it be worth it to you to see more increases if there was a corresponding increase in the build of materials? What would Godzilla look like with an additional $300-$500 of toys (or better toys) and is that worth reaching 13K-14K as a new baseline for Premiums? (Godzilla just being a generic example of course)
I think we have seen that effect in toppers..... now if they don't have a light show, moving action, and game integration people are upset. The new baseline appears to be 1K vs. a few hundred dollars a couple years back. Are people happier with the newer more expensive toppers? I think so. The margin has increased, but value has increased as well, so it all balances out.
I'd be so curious to see if price wasn't a real concern (or less of a concern), what would be the pinnacle for Stern's ability to construct? Maybe we would see something closer to that potential as prices continue to climb and a new established baseline is formed.
I'm sure that would price some people out, heck seeing how prices were 6K just a few years ago it is shocking next to what they are now - but that didn't drive people out in large numbers either. For some pins, it seems like they have more toys than before but not all pins have benefited. For the ones which have, is that not partly due to an increase in BOM? If prices were still in the 6K-7K range would the games today be more sparse than they are?
Just a random thought.... sometimes something that appears bad, turns out to be good.
What do you think?