(Topic ID: 106782)

Stern's Marketing Model - Pro, Premium & LE and Mods

By swinks

9 years ago


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  • Latest reply 9 years ago by Baiter
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    Topic poll

    “Do you like Stern's current marketing model ?”

    • Yes 52 votes
      32%
    • No 113 votes
      68%

    (165 votes by 0 Pinsiders)

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    #1 9 years ago

    Thought this would be a good thread for people to discuss Stern stuff and Stern's marketing tactics and maybe they might take notice and change their ways.

    Before anyone says otherwise I am sure many of you as I am are very appreciative of them and their efforts for being a major player in keeping pinball alive and pumping out machines when no other company was left, but something that amazes me is their Sales Model that they have adopted in the last few years. Prior to Stern as far as I know there has always been one model from a game playing perspective released until Stern introduced the Pro, Premium and LE with the Pro having less playing features. I admit I could be wrong.

    I have nothing against any of the versions based on looks or collect-ability, but I do believe it is poor marketing on their behalf with introducing the LE and also the Premium with extra game playing features with the goal I believe to rake in more dollars and only allow the select few to experience the full game playing version of the game.

    With the recent Expo it is clear that all the other pinball companies are taking the traditional approach of making the base game - the game-players game. Some are offering a LE version but it is a visual difference not a game players experience (as all versions have the same interactive toys and rules) which is the way it should be. I think Stern do it to justify the higher prices and additional sales but in actual fact I am sure it is costing them of good portion of the extra they earn to cover the additional parts, larger & wider range of parts to stock, 2 lots of code programming, long delays in finishing code (leads to loss of faith from the home pinballers), and delays in allowing design staff to get on to the next project. I could be wrong but I believe that there is a cost there that goes against the reasoning for doing a LE.

    I still think there is a place for a PRO and a LE but they need to make sure that each model has the same lighting, rules and game interactive toys and then the LE's could have different plastics, cabinet decals, translite that make it unique looking and collectible, not the game play.

    As for promotion they need to do themselves a favour and do a professional video on game release and not wait for a poor video from an amateur as that will kill some sales and only be a negative for Stern.

    Maybe the introduction of Mods is the start of a new approach of keeping all the games the same in gameplay and people can mix it up with mods but only they would know.

    Curious what others think or if they like what Stern is doing.

    #2 9 years ago

    Not everyone can afford the Premium model , so if they delete the pro model, they will lose those sales immediately.

    #3 9 years ago

    I think they are handling it appropriately as long as the pro stays at a low price point.

    If you google "good, better, best marketing" you'll get a slew of results on the topic. Lots of companies sell the way Stern is, including the software company I work for.

    http://www.marketingzone.com/1332-upselling-good-better-best-options

    #4 9 years ago

    As long as people keep buying their product, they will change nothing, unless it's to get more money out of buyers.

    The current competition is probably the best thing for pinball in 10 years. If prices start trending downward, that would be fantastic.

    #5 9 years ago

    I said yes, because I like that they are trying different things. I think it is wise for anyone in business right now to be looking toward the future. Hopefully they will continue to change so they can produce 2 to 3 machines a year for many years to come.

    #6 9 years ago

    I have conflicting views on this one.

    On the one hand, pinball is made for operators, and I'm not sure an op is going to want to pay extra for a cool topper that's probably going to get stolen from the local bar. If you're buying a pro for home because there's not enough to justify the LE, then you're going to want the extras and don't mind making up the difference.

    On the other hand, if you're shelling out an extra $2000 for an LE, why is that not coming with a topper? But, again, we get spoiled in Pittsburgh with ninjadoug putting LEs on location (thank you, Doug), and the same 'topper is unnecessary' argument applies. I think he's in the (awesome) minority when it comes to putting LEs on location, though.

    #7 9 years ago

    I would like to see the rules be the same across the models. If they want to charge more for extra toys, effect whatever I think that is fine. I feel like they try to make the pro less desirable with subpar, cheesy art. For example the pro star trek cab and backglass vs the le and the p layfield on ad/dc pro. I think it's annoying that they would leave the cross over ramp off Mustang pro.

    But I'm on the purchasing side, not the manufacturing side so if it works for them I guess go for it. Can't afford a Pro anyways!

    #8 9 years ago
    Quoted from swinks:

    Thought this would be a good thread for people to discuss Stern stuff and Stern's marketing tactics and maybe they might take notice and change their ways.

    Honestly I didn't read past this because I 100% don't care if they change their ways and I don't really see why they need to.

    What they do is working for them from their perspective, and if you do/don't like it, do/don't buy anything from them.

    #9 9 years ago

    Stern is the only one who cares if an operator can make money on the street. They are not a boutique pinball manufacturer. The pro version of the game is a great approach and is the bread and butter of their company. Premium and LE versions are mostly for collectors who do make up a portion of their sales and are important, just not as important as the pro sales. I am going to resist from posting a ton in this thread because I have expressed my opinion on Stern's strategy enough on this site to a point where I am sick of hearing myself.

    Stern your doing great please keep it up. Work on your code, but everything else is coming together very nicely.

    JJP take a note and make a game that gets delivered on time, offer a pro version for people to put out on the street.

    #10 9 years ago
    Quoted from swinks:

    I still think there is a place for a PRO and a LE but they need to make sure that each model has the same lighting, rules and game interactive toys and then the LE's could have different plastics, cabinet decals, translite that make it unique looking and collectible, not the game play.

    That's basically JJP's model. Or Stern's model if you get rid of the Pro and only sell Premiums and LEs.
    I personally think Stern would be nuts to get rid of the Pro line. They have virtually no competition at that pricepoint.

    #11 9 years ago

    I will say yes even though the current strategy may keep me from buying.

    They have to offer the pro for the ops. They really don't have a choice on that one. They also need the LE to make sure the ROI happens as quickly as possible.

    That potentially leaves me out, as a Premium buyer, because Stern doesn't need that model. If a game is a hit, then they will make a Premium, and I will be a happy buyer. If not, I will just not buy that title.

    I think it is good that they are offering mods, but it seems like they are underestimating their competition with the mods they showed for TWD. I think the established mod guys will be able to beat them on either quality or price, and maybe both.

    The only real flaw with their current plan is the lack of complete code on release. A game may turn out great once code is complete, but they may have decided against a Premium by then. That would be the only case where I will feel like I missed out. If a game just isn't good enough to warrant a Premium, then I probably wouldn't want it anyway.

    #12 9 years ago

    I want the Fish Head mod, where do I buy it?

    I would like Stern to tell us where we can purchase these and be a bit more clear on that end of things?

    #13 9 years ago

    interesting thoughts guys,

    All I am saying is why don't they make a pro with all the game play features with the standard trim for the price they are now, then people that want the premium look can buy the new mods they are bringing out for the authentic Stern look and the people that want the unique look buy the LE for extra $1000 for the different trim. I am sure there is only a $100-200 dollars in the addition game play features in a game if mass produced and then every Pro would be full game play featured and would sell even better and then people can upgrade with mods. LE guys can also add mods if they wish.

    Just think if TWD did not come out with a premium at all only LE people enjoy the full featured game especially if this became the new normal.

    #14 9 years ago
    Quoted from swinks:

    interesting thoughts guys,
    All I am saying is why don't they make a pro with all the game play features with the standard trim for the price they are now, then people that want the premium look can buy the new mods they are bringing out for the authentic Stern look and the people that want the unique look buy the LE for extra $1000 for the different trim.

    Metallica Pro is $5k and Monsters Premium is $7k. The upgrades are not trim, they are mechanisms, LEDs, and code. Stern will not sell all the junk in the Premium for the price of the Pro, even if you eliminated the tiers. That's why.

    #15 9 years ago

    Stern is the only company selling NIB for under 5k. That works for me...

    #16 9 years ago

    Actually their model works out quite well for me. I just wait for someone to buy an LE and get tired of it, or have to make room for a new game.
    Then I just wait 8-10 months and buy it with low play for the price of a premium (if Stern had made them).
    It works for me. Keep up the good work Stern

    #17 9 years ago

    Im not too keen on the mods sold through Stern rather than dealers.
    It also makes the Le seem like the premium and to get the LE you got to spend the extra $1200 for all the shit. My point is with the trim especially, the mod trim looks badass in the photos. The Le's trim on the line looked really bad like bloody diarrhea. I wouldn't move it to any game and feel good about it without sandblasting it and re-powder coating it.

    This is the main reason i cancelled the LE and switched to a pro,
    well that and i need to start saving for DP game #2

    #18 9 years ago

    Stern's marketing is a total bust. It would seem like the longest, most established player in the market would know who they are. Remember the stripped IM and BDK sold at Costco? Didn't take off right away and abandoned. "The Pin"? Flop. Pro, Premium, LE model, then just Pro and LE model. They just can't decide. They don't seem to have a game plan that they stick with long enough to see if it works.

    And then, when they do make a new game, where's the media? They have a cool new website. Why is it that the first video you see of the game is a grainy cell phone video taken by the first guy to take delivery on the game. Stern used to make some effort in making videos of their games. Now that's completely gone.

    Their marketing plan, if that's what you want to call it, seems to be disjointed and completely in disarray.

    -1
    #19 9 years ago

    Distributors should be marketing since they are the ones selling the game.

    #20 9 years ago
    Quoted from Purpledrilmonkey:

    Metallica Pro is $5k and Monsters Premium is $7k. The upgrades are not trim, they are mechanisms, LEDs, and code. Stern will not sell all the junk in the Premium for the price of the Pro, even if you eliminated the tiers. That's why.

    I look at it differently. If Stern concentrated on making the one standard "playing" game instead of 3 different looking games (that have different game play features, with different lighting, needing different programming) the cost as an average to make one game would be lower within a production. The Pro might be slightly dearer but I really can't see $2k in additional costs for 1-2 mechs and some lighting variances.

    If you make all the games with the same lighting and same mechs the unit purchase price will reduce and assembly will be faster instead of chop and changing the assembly lines, stocking, training etc - it all adds to the savings and allows an increase in output.

    I agree the bling adds a significant cost but that is where Sterns new "mods" approach is ideal and then the LE covers this as well but reckon scrap the Premium and have a base model Pro with the same game play as the LE at the same Pro price.

    #21 9 years ago

    I'm not a fan of the LE stuff but I understand why they do it and it definitely is popular. I'd rather they just have a Pro and Premium.

    I guess my issue is the uncertainty around whether a table will have a Premium or not. Lets take TWD for example. No word yet on a Premium so my options are pre-order an LE without ever playing the game and hoping the code gets complete one day. Or wait and buy a Pro despite the fact I'd rather have the features that would come with an LE/Premium.

    #22 9 years ago

    Premiums at Pro prices.......that's the ticket.

    #23 9 years ago

    Differentiate with trim, not with gameplay. Put all the model levels and price points you want, but one playfield layout and one set of rules.

    #24 9 years ago
    Quoted from TimeBandit:

    Differentiate with trim, not with gameplay. Put all the model levels and price points you want, but one playfield layout and one set of rules.

    Agreed.... I don't care how they package or price the cosmetics of a Premium, LE, Special Editions, aftermarket mods, etc, as long as the game play and rules are 100% the same across the board.

    #25 9 years ago
    Quoted from TimeBandit:

    Differentiate with trim, not with gameplay. Put all the model levels and price points you want, but one playfield layout and one set of rules.

    I agree with that, but then they would miss out on the "limited" sales effect.
    Look at TWD for instance, the first thing that we heard was that LEs were being sold out and that if you didn't preorder in September you would miss out on the unique opportunity to have the full game. So even if you still can find an LE today, the fact it was scarce probably boosted sales.

    By introducing a Premium model, I guess that a lot of LE buyers would have waited for better code, price drops or whatever.
    From a marketing point of view, creating scarcity is (maybe not the best) a strategy. It does suck to have different rulesets and stripped down games, but sales-wise I think they achieved what they expected.

    #26 9 years ago

    I understand why they do the Pro model from a business perspective, and it doesn't bother me at all as long as there is a Premium version that is readily available.

    My problem with LE models is that everyone is making too many of them. I think LEs should be truly limited, just 250 (or less) of a fully blinged up pin for those who love the theme.

    #27 9 years ago

    Still thinking there will be a TWD Premium after LE is sold out. This may Stern's new method...make sure the LE is sold out before announcing the Premium.

    #28 9 years ago
    Quoted from swinks:

    I look at it differently. If Stern concentrated on making the one standard "playing" game instead of 3 different looking games (that have different game play features, with different lighting, needing different programming) the cost as an average to make one game would be lower within a production. The Pro might be slightly dearer but I really can't see $2k in additional costs for 1-2 mechs and some lighting variances.

    If you make all the games with the same lighting and same mechs the unit purchase price will reduce and assembly will be faster instead of chop and changing the assembly lines, stocking, training etc - it all adds to the savings and allows an increase in output.

    You're making it sound like the LE and Pro are wildly different when in fact historically they have 1 or 2 different/extra mechanisms, and different art and code. They might save 1% for all we know, and there's nothing making them pass any savings on to us. By switching to cab decals and keeping 90% of the game the same, they are already mostly doing what you are describing, but it's not so they can sell you a cheaper machine, it's to maximize profits.

    I agree the bling adds a significant cost but that is where Sterns new "mods" approach is ideal and then the LE covers this as well but reckon scrap the Premium and have a base model Pro with the same game play as the LE at the same Pro price.

    Again, the Premiums/LE's have more than just 'Stern Mod' toppers and trim. Again, with Metallica as the example, are you suggesting that the Snake mechanism, Hammer Lock, color changing GI etc... are sold as mods, or that they should be sold to you at 5k? Either way that's not going to happen imo and I think it's kinda silly to ask for it either way. Maybe that's just me.

    #29 9 years ago
    Quoted from Captain_Kirk:

    Still thinking there will be a TWD Premium after LE is sold out. This may Stern's new method...make sure the LE is sold out before announcing the Premium.

    That would be a terrible idea imo from a commercial point of view... It would piss off everyone. The pro buyers that didn't want to spend $8000 on an LE and the LE buyers that felt "forced" to go that way in order to have a full featured game.
    Plus, that would be a one shot strategy... If they try to do the same for the next release, a bunch of potential day one buyers will be waiting for the Premium announcement and launch sales would therefore be affected, which is not in Stern's interest in order to generate a quick ROI.

    #30 9 years ago
    Quoted from Captain_Kirk:

    Still thinking there will be a TWD Premium after LE is sold out. This may Stern's new method...make sure the LE is sold out before announcing the Premium.

    I agree with geekmiki, it's a poor sales strategy considering Stern is still shipping games with code in its infancy. There's absolutely no way to judge whether a game is truly worth purchasing until the code is finally finished a year later, and by then Stern has typically wound down production of both Premium and LE. It's a "buy blind" market at this point from all manufacturers, who rely solely on pre-orders to determine final production.

    #31 9 years ago
    Quoted from Baiter:

    I agree with geekmiki, it's a poor sales strategy considering Stern is still shipping games with code in its infancy. There's absolutely no way to judge whether a game is truly worth purchasing until the code is finally finished a year later, and by then Stern has typically wound down production of both Premium and LE. It's a "buy blind" market at this point from all manufacturers, who rely solely on pre-orders to determine final production.

    How is that any different with a Premium?

    Neither one of the last two posters arguments makes any sense.

    #32 9 years ago
    Quoted from Captain_Kirk:

    How is that any different with a Premium?
    Neither one of the last two posters arguments makes any sense.

    Because the Premium doesn't have pre-determined production limits it is Stern's only mechanism to recover from a bad guess on LE production. Remember, the LE is designed to be sold out, usually before the game hits the streets, so without a Premium on a well liked title, there is no way to make more full gameplay models to meet customer demand. Stern loses money, customers are not happy with their options.

    #33 9 years ago

    No, gameplay should be the same.

    #34 9 years ago
    Quoted from Plungemaster:

    No, gameplay should be the same.

    totally agree and was my main point, Heighway, JJP have LE's with the same game play as the standards just have more unique bling.

    #35 9 years ago

    Best way to solve the problem is, people who don't like the pro and think they shouldn't make them, let your money do the talking and buy a premium.

    #36 9 years ago
    Quoted from blue95:

    buy a premium.

    If it is available of course... If they continue the TWD strategy, there won't be any Premium models and it will be LE blind buy at the highest price or stripped down Pro. Which IMO is the worst choice you can get as a customer because of the aforementioned points (not finished code on release, gameplay differences, etc.).

    #37 9 years ago

    Will work out great for the flippers when there is a good LE of a machine that gets bad early uninformed reviews, like with Tron.

    #38 9 years ago
    Quoted from ZenTron:

    Distributors should be marketing since they are the ones selling the game.

    Car dealerships do adverts, but the actual car companies do the higher budget ones.

    Quoted from geekmiki:

    That would be a terrible idea imo from a commercial point of view... It would piss off everyone. The pro buyers that didn't want to spend $8000 on an LE and the LE buyers that felt "forced" to go that way in order to have a full featured game.
    Plus, that would be a one shot strategy... If they try to do the same for the next release, a bunch of potential day one buyers will be waiting for the Premium announcement and launch sales would therefore be affected, which is not in Stern's interest in order to generate a quick ROI.

    This is Stern we're talking about. These guys suck so much at business that a young upstart like DP looks like the leader of the industry without even releasing a single pin.

    Don't over-estimate Stern. Set your sights low with these guys. Remember Luci? Many were pissed. Even JJP did it with Ruby Red edition.

    #39 9 years ago
    Quoted from blue95:

    Will work out great for the flippers when there is a good LE of a machine that gets bad early uninformed reviews, like with Tron.

    If a flipper bought every LE, they would lose money more often than not.

    Quoted from HunchbackHodler:

    Don't over-estimate Stern. Set your sights low with these guys. Remember Luci? Many were pissed. Even JJP did it with Ruby Red edition.

    Yes, because people hate choice

    #40 9 years ago

    What is their model? Sell Premiums when it suits us? They are all over the map. If their model is to offer an affordably priced FULL featured version of all their tithes, than I'm cool with it. Otherwise screw 'em.

    #41 9 years ago
    Quoted from usandthem:

    Stern's marketing is a total bust. It would seem like the longest, most established player in the market would know who they are. Remember the stripped IM and BDK sold at Costco? Didn't take off right away and abandoned. "The Pin"? Flop. Pro, Premium, LE model, then just Pro and LE model. They just can't decide. They don't seem to have a game plan that they stick with long enough to see if it works.
    And then, when they do make a new game, where's the media? They have a cool new website. Why is it that the first video you see of the game is a grainy cell phone video taken by the first guy to take delivery on the game. Stern used to make some effort in making videos of their games. Now that's completely gone.
    Their marketing plan, if that's what you want to call it, seems to be disjointed and completely in disarray.

    Pretty much nailed it.

    #42 9 years ago
    Quoted from Baiter:

    Yes, because people hate choice

    Apple had many different machines when they were going out of business, like a dozen. When Steve Jobs came on as CEO, he simplified everything to only 3. Keep it simple. How many versions of AC/DC do we even have? 4? What about Tron? 5?

    You just need 2. The cheap one and the full version. No sub-categories, which reminds me too much of the comic book industry during the 90s with their gold/silver/platinum covers. Collectors exploited. The whole LE thing is a gimmick.

    #43 9 years ago
    Quoted from HunchbackHodler:

    You just need 2. The cheap one and the full version. No sub-categories, which reminds me too much of the comic book industry during the 90s with their gold/silver/platinum covers. Collectors exploited. The whole LE thing is a gimmick.

    I agree 100%. Keep the business methodology clear and concise. You want the pro/full version that is great, if you want to step up to the premium version, pay the extra amount and enjoy the additional items. Both should have the same software and a very similar gaming experience.

    I understand that the market and competition should drive value for money (the pro version). Those who wish to invest in a premium product should be willing to pay for it. Two variants with complete market coverage.

    #44 9 years ago

    I'm just happy company's are still making machines. Stern pro is the only nib I can afford so it's ok in my book.

    #45 9 years ago

    It's absolutely ridiculous that the premium level can be dropped on a whim. The premium level IS the game. Spider Man - premium level; LOTR - premium level. This is so simple it gives me a headache..

    1) Make THE game. Make it to a good, solid premium level, designed for route and home alike.
    2) Make a stripped down version for a more economical choice,
    3) Add some trim, some signatures and a plaque for a limited version..of 200 units.

    STOP SCARING people into buying LEs to get the full playfield..this is complete bullshit.

    #46 9 years ago

    The biggest thing i hate about this. When stern makes an LE that somehow proves to be one of the best pins ever. Only 1000 owners (or any other le number) can enjoy that game.

    1000, with 7 billion people on earth....

    Not even looking at the money. Why would you take the risc one of your best pins is only available to such a tiny group of people?

    Make the pro the same gameplay, and bling the le with whatever you want. Taht is the wy to do it. And sell tons of extra mods. Its not only the best way for the costumers, its for stern too. Cause they will sell alot more pins.

    I will never support this business as it is now. My savings will goto jjp or dp.

    #47 9 years ago

    It would be great if Stern just marketed the full game and a scaled down Pro model, and then offered cosmetic upgrade options at the time of order from their Mod Shop for nicer armor, real back glasses, toppers, etc. Seems like this would satisfy everyone other than flippers. It would suck to buy a Walking Dead LE (which is suppose to be the top of the line) for close to $8k only to find out that that you need to spend another $400 to get the real top of the line armor. It would take more effort to include various options upfront but plenty of manufacturers are doing it successfully.

    I understand that they are trying to maximize profits (that's why businesses in the US exist) but I'm skeptical that the TWD approach is the right one. It seems like they are in flux awaiting their new factory and next generation design, which is giving the impression of a muddled strategy. Hopefully they will land on a marketing strategy that will excite the bulk of their customers.

    #48 9 years ago
    Quoted from HunchbackHodler:

    How many versions of AC/DC do we even have? 4? What about Tron? 5?

    There are 5 versions of ACDC, but only two gameplay platforms, Pro and Premium/LE. I'm fine with them making all the cosmetic variants they want, but let's not limit production of an entire gameplay platform like they are doing with TWD.

    The ACDC situation is far better than AF or TF. AV also has 5 variants, but 3 gameplay platforms: The Pin, Pro, and Premium/LE. TF also has 5 variants and 3 gameplay platforms: The Pin, Pro, and 3 LEs. Both under-sold Stern's expectations, making the extensive amount of models look silly in hindsight. Tron had only 2 variants, 2 gameplay platforms, but actually the differences were minimal between subsequent Pro/LE titles. They just underestimated demand of the title due to successful game/software/cosmetics, so they missed out on selling a boatload of Premiums, and Pros are still in demand.

    #49 9 years ago
    Quoted from swinks:

    Some are offering a LE version but it is a visual difference not a game players experience (as all versions have the same interactive toys and rules) which is the way it should be.

    +1. assuming they can still sell Pro versions for less than $5k.

    #50 9 years ago
    Quoted from Baiter:

    There are 5 versions of ACDC, but only two gameplay platforms, Pro and Premium/LE. I'm fine with them making all the cosmetic variants they want, but let's not limit production of an entire gameplay platform like they are doing with TWD.
    The ACDC situation is far better than AF or TF. AV also has 5 variants, but 3 gameplay platforms: The Pin, Pro, and Premium/LE. TF also has 5 variants and 3 gameplay platforms: The Pin, Pro, and 3 LEs. Both under-sold Stern's expectations, making the extensive amount of models look silly in hindsight. Tron had only 2 variants, 2 gameplay platforms, but actually the differences were minimal between subsequent Pro/LE titles. They just underestimated demand of the title due to successful game/software/cosmetics, so they missed out on selling a boatload of Premiums, and Pros are still in demand.

    Okay I see. Thanks for your reply. I think 3 variant game platforms makes development expensive for nothing. Stern's marketing department disregards what would help the devs keep their budgets in check. If the devs work on just one gameplay platform, they would save money and use the rest of their budget for more tech and/or coding. This company is in serious need of some centralized management (like Steve Jobs did at Apple), they need to optimize.

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