My spidey sense is tingling and that tells me something is up at Stern. There has been plenty of public discourse on pricing and my bet is Stern has reconsidered and will be changing their policy on Beatles from a week ago. On Tues, expect them to set MSRP on all models at 7.6k / 8.8k / 10k. This will establish price levels that are reasonable and alleviate bad feelings from price gouging, while keeping their pin under $10k, as claimed by Joe K.
Stern will still require a 10 game block purchase in order to receive 2 platinum and 1 diamond editions. Buy 10 pins for $70k and sell them for $80k. $1k per pin is good margin for a distributor, but chances of them being stuck with golds in the warehouse, collecting dust remains high. These margins seem too low for the risk of this bulk purchase model.
Continue expecting Beatles to be the same pin for all models except for artwork and trim. With all three packages being similar, why buy anything other than gold? This is a missed opportunity by Stern. There should be visible differences and upgrades to differentiate models. With four days to go, pricing details could still evolve, but Stern will define pricing and show us their final pins at reveal.
These refinements are a good idea, as they increase Stern’s chances of selling pins and eliminate unknowns for distributors. They also introduce a unique problem. Let’s say sales are luke warm and 1000 games are bulk sold to distributors. That is 100 units of 10 games - 100 diamonds plus 200 platinum plus 700 gold. It would leave unmanufactured 50 platinum plus 914 gold. If there are no more orders, there are no more made. What if all 1964 games sold in 196 full pallets plus one misc pallet of 4 games. But wait ... 196 people can’t get a diamond edition if only 100 diamonds are being made. Likewise 392 people can’t get a platinum edition if only 200 are being made, right?
The dirty little secret of this bulk buy model is that Stern only plans to make/sell 1000 pins and then call it quits. Sad that they won’t be making 1964, but that was just marketing gimmick. At 50 pins a day this might take Stern one month to run. If The games were cheaper they could have sold these out quickly and been able to make one run. Current plan may start off slowly.
Remember our pricing above? Stern will be making 1000 pins - grossing 100 pallets x $70k = $7M. On a unit basis a game may cost Stern $2.5k to manufacture plus $2.5k for engineering / procurement / support / marketing / OH & Profit = $5k per game or $5M. Licensing cost of $1M and Kaminkow fee of $1M if all goes well = $UCCE$$