Quoted from KozMckPinball:Distros themselves are flipping LEs. Stern could address that portion of it I think.
Stern requires that the distros pay in full and up front for the LEs. They don't care if they then get marked up due to high demand. Indeed I would expect it might even been encouraged as it helps the distros to make a few extra bucks. Gary likes the to spread the love a bit and wants operators and distributors to stay around. He knows the "lean times" for pinball can come back and it's okay to put some fat on your bones in the mean time.
Ultimately in a market with high demand and limited supply there will always be participants who don't get what they want and there will always be flippers.