(Topic ID: 148509)

The Spiderman VE Buying Power Group

By galaxian

8 years ago


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#3 8 years ago

Dude your clueless on what you think Stern charges its distributors for games and how many games they sell. You would never get a large enough group together even if all pinsiders interested in this title purchased their games via this route. Your not going to get something like this to happen when your looking to get games at a substantially reduced rate at what their distributors pay. Why would they cut their distributors at their knees?

You clearly want the game and so does so many other people, if you can't afford it or don't think the 6k is worth it than don't buy it. The only way Stern may ever reduce their pricing is if people stop buying the titles completely.

#48 8 years ago

Most distributors make $1 to a few hundred per machine. This is 100% true, plus any SMALL kickback from stern for larger sales numbers at year end. Again it is a SMALL kick back and you have to sell a lot of games to reach that point.

This has been told numerous times here on Pinside and yet people still believe distributors make a killing off their customers. I believed they made more than they do until I saw actual figures. Stern does well on premium and LE games, but not the margins you guys think. There I have only seen some of the hard figures, but if I had to guess which is what everyone does here on pinside is less than 40%. Which is not great when you have titles that flop or consider the support/warranty end of the games.

#50 8 years ago
Quoted from Zampinator:

Their cost as a distributor is 30-35% of retail. So that equals a dealer cost of roughly $5300.

WRONG!!!!!!!!!!!!!!!!!!!!!!

#52 8 years ago
Quoted from Zampinator:

Nobody is getting rich, I get it. Parts & service is where the money is typically at.

I don't know if people are getting rich or not, all I do know is that your 5300 figure is way off, cost is much higher to distributors.

#54 8 years ago
Quoted from Zampinator:

Just a guess.
I'll also guess that 7-10% is probably all you typically make per pin, which is silly. And God forbid you over order on titles that don't move your going to take a loss.
I don't miss retail at all!

Yea, I feel bad for some distributors that ordered a ton of TFLE and WWELE games. They just didn't move. I personally would never be a distributor. There are so many of them already undercutting one another price wise and the headache alone of service calls/questions and even simple things as the accounting and bookwork that must be done to keep the business running is enough to keep me from being interested in the tiny profit these guys do make. Where they do make out is the few customers who pay MSRP or the guys who have trade ins and used games. Similar to a car dealership, although I do hate when people compare the two industries.

-1
#57 8 years ago
Quoted from usandthem:

I got a quote from a highly reputable distributor on Pinside for $4600 shipped.

This was an at cost quote.

#60 8 years ago
Quoted from Krankypants:

I promise you they are making more than that per game. That would be less than a 5% mark up in most cases. You can't run a business for very long with that thin of margins.

Your wrong, they really do operate at that low of a margin.

#99 8 years ago
Quoted from u2sean:

Wow, then my quote was under cost. Sweet (I still passed...)

I assumed that shipping was at least a few hundred.

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