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

[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.

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 if others feel the same or if they like what Stern are currently doing.

[elkor-alish]

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.

I agree with pretty much everything you're talking about swinks but the quoted above most of all.
I will never buy a pro unless its the only model available.
I don't want a game they took bits out of to sell cheaper.
It's good that Stern are giving people options but the lesser models aren't for me.

[delarge]

I'm a big fan of the Pro model pricing as a home collector on a limited budget and a thirst for a bigger collection. My thinking is that I can buy the Pro model and put that other money into the next game.

I think it would be better to have one playfield for both Pro and Limited Edition machines and just load up the LE with "bling". Plaque, certificate, mirrored backglass, powder coated trim, shaker motor, subwoofer and whatever else they can pack in. One playfield = one lot of game code to focus on.

I do see positives of the Pro machine for a site operator though. Cheaper price and less mechanics to worry about and things breaking down. Example: the Metallica hammer mechanism.

In summary: I hope Stern never do away with their Pro model and competitive price point. I would never have bought new in box if it wasn't for AC/DC and reasonable pricing. I would love to get a Jersey Jack pinball in the collection, but $10,995 is far too much at this point in my life.

[Retropin]

Stern have had us scratching our heads for a few years now with its 3 tier system.
Maybe now they've gone into the mod market we could see the same machine but in 2 modes... basic and then the game that includes the optional extras like topper, blades etc.
In all honesty, a Stern game should be the bread and butter game of the hobby... their market really is in the $6000-$7000 range.
The high end $10K+ games should be left to the smaller companies.
A bit like buying a Toyota Yaris or spending more and getting a Merdcedes

[Brunswick Brawler]

I don't mind the different models, but feel the real issue is the price difference.  There is a place for games on location being lower cost.  The interesting question on the price gap is:  Is Stern's profit margin on a Pro small, or is their profit margin on an LE high?

Further, if Stern only had one model based on a Premium, would the simplification of the production and the bulk parts buying power mean that a Premium only run would place its cost not much more than a current Pro?  If that was the case, then I wish they would stick to Premiums only.

[Cow Corner]

I just wish they would make one model per game, try something different theme wise and pick their act up on quality control.

[Pinprick]

I too have been cranky with the "new" Stern marketing team and their dubious strategies for a long time.
I feel that they have been f***Ing with peple's heads & pockets simultaneously.
Yes, I know business is business but there is such a thing as dirty pool.
One never knows what card(s) might be up their collective sleeve after laying out lotsa $$ for what you think of as a "holy grail" title with a decent resale value - then whammo, they're knocking out a gold version or even worse, a "Lucy" type trick or some such horseshit.
I really wish they would invest their energy & resources into single model only machines, focusing on cutting edge innovation and design to enhance their appeal & sales.
If they don't, I would hope/imagine that the growing opposition(s) may force their hand and the marketing wankers get hoist by their own petard.
 

[Caveoftreasures]

We should all write letters to Holden and Ford and tell them they should only sell one model of Commodore or Falcon.
They ofcourse would say that would be commercial suicide and ask why they shouldn't give their customers CHOICE.
The pinball industry isn't like Russia in the 1960,s where there is only a one model anything for the people.

Sterns system is very very very very simple and successful.
Unless u think we should be living back in 1960 in Russia with the communist one model situation which ofcourse failed.

The Pro model is a excellent game and is priced almost $3500 under most other companies cash grab.
You don't have to buy above the Pro to get a excellent brand new in box pinball machine.

Why spend more than 7 grand Aussie if u don't want to.
Sterns system is 2014 simple successful marketing strategy.
It must work cause I will have my fifth Pro very soon.
At 10 grand I would not have purchased. But at under 7 grand a machine Stern have satisfied me five times.

Why change Sterns sales model when every other industry has the same multi level sales platform.
Just look at jet skis, motorbikes, cars and all luxury items and industry's. They all have multiple models priced to suit multiple tastes and choices. Going back to a one model only plan would be commercial suicide.

I am lost as to why people don't understand such a simple system .

[Cow Corner]

Communist Russia, classic!!

 

[Retropin]

We should all write letters to Holden and Ford and tell them they should only sell one model of Commodore or Falcon.
They ofcourse would say that would be commercial suicide and ask why they shouldn't give their customers CHOICE.
The pinball industry isn't like Russia in the 1960,s where there is only a one model anything for the people.

Sterns system is very very very very simple and successful.
Unless u think we should be living back in 1960 in Russia with the communist one model situation which ofcourse failed.

The Pro model is a excellent game and is priced almost $3500 under most other companies cash grab.
You don't have to buy above the Pro to get a excellent brand new in box pinball machine.

Why spend more than 7 grand Aussie if u don't want to.
Sterns system is 2014 simple successful marketing strategy.
It must work cause I will have my fifth Pro very soon.
At 10 grand I would not have purchased. But at under 7 grand a machine Stern have satisfied me five times.

Why change Sterns sales model when every other industry has the same multi level sales platform.
Just look at jet skis, motorbikes, cars and all luxury items and industry's. They all have multiple models priced to suit multiple tastes and choices. Going back to a one model only plan would be commercial suicide.

I am lost as to why people don't understand such a simple system .

We do understand it..There are X amount of one model who's numbers are limited. It is essentially the game that has all the bells and whistles. If you fail to secure one of these, you are left with no choice but to buy a model that has the bells and whistles taken out.. or.. a lesser machine. Now that you have your numbered machine to which you more than likely had to buy at conception stage... or you have your lesser machine, but feel that, hey, its the best you could do given the limited choices. Stern then decide that the cow hasn't been milked enough and so go and make yet another model which is an improvement on the lesser machine. Now you are sitting there with your lesser machine wishing youd held off because the new model which was never mentioned at the start looks better and had you had the choice you would have snapped one of these up instead.
You haven't read the thread properly.. no one is saying to have a single machine only... they are saying to have a single GAME only... we all get the same game to play mechanically but have options for a chrome model.. upgraded backglass etc.
I you insist on comparing pinballs to cars then to put it simply, its like having the option of leather interior or cloth... same bloody car though..

[Caveoftreasures]

Who says every Stern buyer only wants the LE model and that they only buy a Premium or a Pro because they couldn't buy the LE. That's absolutely ridiculous. Stern sell more Pros than both the Premium and LE combined. A recent Gary Stern interview said that the Pro model still accounted worldwide for over 50 percent of sales. I believe that the Premium accounts for apx 35 percent and the LE the other 15 percent depending on the title and if a Premium is offered or not. If a Premium isn't offered, which is rare, they double the LE numbers.

When I have spoken to Stern USA they have suggested these figures are close to the mark depending on the country.
Australia I am told still buys the majority of machines being Pros. But Aussies still buy a lot of both Premium and LE.
To Stern, they can't lose building machines to order, in any of the three models.
Like a car company, if u order and pay for it, they will build it and make a nice dollar. That's business 101.

Why should there only be one model or one playfield or one game only when people want choice.
Stern make different models because they HAVE LISTENED to their customers and have supplied three different models to cater for all tastes.

To suggest that there should only be one level or style of playfield is profit restrictive. I would expect any person who runs their own business to understand these basics. You never refuse the customers request or dollar. That would be insane. I think some people just bash Stern cause they have nothing better to say.
But why be a critic. Anyone can criticise, but why not praise and be thankful for the great work they do.
Hearing people being negative all the time gets old. To me, it's like can you do better than the professionals ? If so criticise, but if u can't, then stop harping on that Stern ain't perfect. No company or product ever will be.
So why constantly criticise ? Cause in the end, you just come accross as a hater.

I think if you buy the product u have the right to praise, but if u aren't a customer, why knock everything all the time.
It would be like going into a Holden dealership and telling them you are a Ford fan and u hate their product. I am sure the salesperson would tell u to fark off ! People Stern bashing all the time is similar to me.
If u don't like the product, don't buy it. If u do uh it, tell the world you are happy or not happy.

One HUGE point to remember is that they/Stern have listened to their customers, not their detractors. It would be like Ford Australia listening to Holden fans and not loyal Ford buyers. Haters don't give you their money, but loyal customers do. Who are you going to listen to ? The people who spend the $$ constantly obviously. Sure, everyone needs CONSTRUCTIVE feedback, but no one is going to take someone who always complains seriously.

I don't think some people will ever praise Stern. It's just so much easier to sit on the sidelines and bag the shit out of everything. Everytime I play one of my Sterns I think about the haters n just shake my head and laugh.
Sometimes being positive is easier on the ears of people who are already happy customers.
It doesn't matter what you say to a happy Stern customer, they aren't going to sell their machines and stop buying Sterns to keep the critics happy.

Stern bashing gets old to Stern fans. Stern praise must get old to Stern haters. Same shit, different day.
I am sure someone will yet again have something negative to say....this subject will be like the Palestinians and the Israely's. The arguments will go on forever probably.

[oldskool1969]

The old saying is
Listen to what I say, not what you think I am saying!
Stern bashing is far from what I read into it? 
A little bit too passionate sometimes Cavey, chill Dude.
I only wish for more transparency on product development by ALL manufacturers, some of the new players appear to be doing this very very well and looks like they are winning in the sales race.

[Pop Bumper Pete]

Remember when pinball was fun?

[swinks]

your missing the point cavey..

you can't compare pinballs to cars, nor being a communist society.

I think if everyone had the opportunity they would like every machine to have the same game play, and then if you wanted the dick johnson (Ford) or the brock (Holden) version being the LE they pay the extra $1000 for the trim but every game plays the same with the same rules. I am pretty sure a few years ago Spiderman came out and the standard played the same as the Black version but you just paid a little extra for the uniqueness of the black trim and parts. Then LOTR was similar, then we blended to a Tron which had drops on the LE with lit ramps but the rules tweaked a little different and then it went silly to removing toys and the game play changed.

Now with Stern introducing vault games like the IMVE, it is a big rip off as all the designing was done but it is $2150 more than when it was originally released and it is the Pro equivalent. Don't get me wrong it is a great game and I miss my game but Stern have been successful of driving prices up as IMVE has been the most expensive Pro to date and they are enjoying lots of cream on this one.

If you took say LOTR Pro and then TWD LE the difference would be a few trimmings (looks) but the number of game play features probably would be very similar but the price is shot through the roof. A pro now is a lot less in game play features compared to those of a few years ago. Stern is the company that I believe has driven the price of Pinball up as they created the LE and the Premium, and from that companies like JJP (theme aside) wanted to set a place in the market that their quality is a better and they have some extra features (lcd) so the price needs to be a little higher than a high end Stern pin.

Companies like Spooky have a full LE equivalent pin for the price of a Stern Pro, so why can't Stern. Companies like DP have a higher price as they are starting up but on quality and features they are ahead of Stern. I bet if you looked at the game play features of a Stern LE to Stern Pro the cost difference would be lucky to be $200 if mass produced and maybe the assembly throw in $50 for labour so why is a Premium about $1250 different.

All I am saying is why don't they make a pro with all the features with the standard trim for the price they are now, then people that want the premium look buy the mods and the people that want the unique look buy the LE for extra $1000. It's not Stern hating but Stern questioning as obviously they are conditioning people to what the new norm is which in effect is pushing all the market up, which flows on to the competitors and then the resale market.

[Freiherr]

This thread is a simple question on Stern pricing model. I think they should concentrate on one full featured model and let the market dictate the desirability of titles. This would me more price effective for the manufacturer and less confusing for consumer. The trouble with the world today is that we give consumers too much choice. Stern will loose sales to the upcoming manufacturers who focus on one quality and well thought out title rather than trying to cater for paupers, middle and upper classes.