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Pinball Machine Value? "Good investment?"

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RellikJM

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Sep 17, 2003, 12:33:38 AM9/17/03
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Are pinball machines a "good investment" ? I mean are they appreciating in
value? Or are they going in a slow decline?

Thanks-
--
RellikJM
RellikJM AT Yahoo DOT Com
Don't forget about my "FREE" EPROM programming !
Advice is only worth what you paid for it!


Lloyd Olson

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Sep 17, 2003, 12:42:31 AM9/17/03
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Probably not. Generally in most hobbies you get things to enjoy. some things
hold value, some don't. Your money will usually do better in savings accounts,
stocks, bonds, etc.

And the machines currently being collected, a lot of them are being used. now
a truly HUO machine may hold value or go up, but the ones being used are
depreciating.

And the new Stern pins, any really popular ones Stern will do more than one
run of, so the ones being used are depreciating.

William's closing and some particular models going up is an exception, if
Stern were to close, there is no guarantee that any Stern pins may go up.
Alvin G. pins are a good example, they haven't gone nuts in the marketplace.
LTG :)

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John Wart, jr

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Sep 17, 2003, 12:45:43 AM9/17/03
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Yeah, What Lloyd Said

Now, if you tried to place a value on the enjoyment, what an investment they
are indeed! You simply can't afford to not keep them, and buy more!

--john

--
http://www.myhomegameroom.com
"Lloyd Olson" <l...@ssbilliards.com> wrote in message
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Premier

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Sep 17, 2003, 3:28:56 AM9/17/03
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This post is rather lengthy and is primarily just opinions
supported by observation and not necessarily fact. So throw
your stones here so at least you wont mess up my text.


All of the late model Stern machines seem to have held their
value (excluding the new/used depreciation), even the dud(s)
that would barely out-perform a wedgehead on location. Sure
they hold their value mainly because they are still rather
new, but with just one manufacturer putting out 2-3 pins a
year, there's not enough new stuff coming out to make the
older machines less desirable.

I can't see Stern closing, at least not from a lack of
consumer demand. You won't see a new pin collect a speck of
dust in any of the showrooms in my area. But if for some
reason Stern were to close, you could almost guaranty that
3/4 of the available machines would be gobbled up and you'd
see sharp increases in prices across the board. You'd be
hard pressed to find a new Stern machine for sale for
anything less than double its original cost mainly because
few would want to sell them since there'd be nothing to
replace them in their inventory.

The reason I'd feel the pinball community would react this
way is the stunning realization that the last hope for a
supply of new machines would be gone. There is still enough
of a demand for pinball machines to prevent its extinction
and total collapse of its market value. From my vantage
point, there's been a study increase in demand for machines
for home use. With supplies diminishing, continued demand
should protect if not increase the value of pinball
machines.

With all this aside, the true value in a pinball game is the
enjoyment it provides those who play them. As an
investment, pinball machines would be low risk as long as
they were purchased wisely. There is some potential for
moderate short-term growth but the long-term outlook is
severely uncertain. However, should the last manufacturer
stop producing machines, pins would probably do pretty well.
It wouldn't hard to beat the 2.5% you'd get on a money
market.


"Lloyd Olson" <> wrote in message
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kdka

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Sep 17, 2003, 9:44:18 AM9/17/03
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FWLIW, I started collecting pins 28 years ago with the premise that I would
purchase pins for enjoyment only and never for investment and have never
varied from that. I have had as many as 17 machines and am now at 11. In
all that time, I have received 1,000's of hours of pure enjoyment and
recreation, to say nothing about how much I've really enjoyed repair and
restoration!. A side benefit is that while I bought the machines for
pleasure only, many of them have turned into classics and are worth many
times what I paid for them when they weren't yet highly desired machines. I
have never regretted my initial decision and despite the increase in value,
I wouldn't part with my pins unless I absolutely had to. Ken

"RellikJM" <GO@SPAM SOMEONE ELSE.COM> wrote in message
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John Scott

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Sep 17, 2003, 10:16:24 AM9/17/03
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"RellikJM" <GO@SPAM SOMEONE ELSE.COM> wrote in message news:<CuR9b.88144$mp.4...@rwcrnsc51.ops.asp.att.net>...
> Are pinball machines a "good investment" ? I mean are they appreciating in
> value? Or are they going in a slow decline?
>
> Thanks-

Over the last two years, I've seen nice appreciation on some of my six
machines and declining values on others. It really depends on how
good a deal you can get at purchase time. However, when you factor in
the money spent on parts, upgrades (must have dancing boogey men and
deadhead LED eyes on Scared Stiff), or "should I bid on that NOS
playfield on Ebay?", it starts to resemble my other hobby -- which is
sailing. (And a "boat" is defined as a hole in the water into which
money is thrown.) Maybe if you bought a NIB pin that turned out to be
a popular model, never open it and keep it in a cool dry place...
Nah, what's the fun in that?

--John Scott
San Diego, CA

--John

Mike Doyle

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Sep 17, 2003, 3:05:34 PM9/17/03
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I've collected pins and other coin-op machines for several years, and
I can say without a doubt that they are increasing in value. Pinball
machines follow similar patterns to other coin-op games, a high
initial price that sharply decreases over a period of 2 to 5 years,
followed by a few years of more gradually declining prices, then they
begin to increase. The points of change in this pattern are different
for any game both in time and percentage, but they all follow the same
basic pattern.

Considering the Williams pins of the late 80's and 90's, and looking
at market values over the timespan from their introduction until
today, you'll see the same pattern with a significant difference in
current values between titles.

Games like Funhouse, Twilight Zone, and others have had a meteoric
rise in value, while others have been more gradual. The point is
still the same, they are all going up.

I collect jukeboxes too, all you need to do is trend the prices for
those, to get a rough idea where pinball prices are going to be in
another 30 to 50 years.

None of this is an exact science, and there's no discounting the
enjoyment factor you'll get from your collection, but at least you
don't have to plan to lose your shirt (like boat ownership) if you
decide to sell.

Lastly, there is a long-term generational factor to consider. If your
collectible item outlives the generation that remembers it, and a
younger generation hasn't embraced it, you can expect a sharp decline
in price. Hopefully we'll all live long enough to have this problem!

Regards,
Mike Doyle

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Lloyd Olson

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Sep 17, 2003, 3:19:31 PM9/17/03
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But the average used ones still sell for a lot less than what they cost new.
So they aren't going up in value, they aren't even holding value, they've
decreased in value, though may be selling for more now than a few years ago.
LTG :)

"Mike Doyle" <mdo...@wegelectric.com> wrote in message
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> Games like Funhouse, Twilight Zone, and others have had a meteoric
> rise in value, while others have been more gradual. The point is
> still the same, they are all going up.

> Regards,
> Mike Doyle


Mike Doyle

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Sep 18, 2003, 10:51:34 AM9/18/03
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I agree with you, I didn't assume the original poster was going to buy
everything new. Even if he did, eventually he would be rewarded
considering what HUO games go for. If he is able to pick up a few
older titles now, he'll be poised to reap the upward swing of the
curve.

In contrast, I used to have a big twin-engine offshore powerboat with
all the amenities, it had a "bathtub depreciation curve" that stopped
at the drain! Never have so few, paid so many, for so little ;-)
Nobody buys a boat in their right mind expecting anything but a heavy
dose of depreciation.

There is a new type of "speculation risk" here on Stern pins to
consider however, since they have indicated they will re-run popular
games. I sure wouldn't buy anything and keep it in the box (it's
against house rules anyway ;-) if there was a chance it would be
re-run.

Williams is gone, and any attempt at remaking one of those would
result in an facsimile that would probably support the price of the
old ones instead of hurting it.

Classic economic theory still applies.

Regards,
Mike Doyle

"Lloyd Olson" <l...@ssbilliards.com> wrote in message news:<7t2ab.146570$3o3.10...@bgtnsc05-news.ops.worldnet.att.net>...

Kirb

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Sep 18, 2003, 4:58:27 PM9/18/03
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Well, as someone who has delt with many machines (none of them new,
however) I would have to say this:

New machines are not a good investment. Stern re-runs machines when
the demand is there, so you are not going to have a MM type of game
that sells for thousands more than it did new.

90's machines from WMS seem to be a decent "investment" when you buy
them cheap and sell them high. This only seemed to happen with the
early container loads from england or if you rode through WMS closing
it's doors with some games in your stable. Some later containers were
still good deals, but it's hard to find WPC games that cheap now. You
would restore them and they would be worth pretty good cash. Some
collector titles always seem to bring more and more every year.

80's machines are almost a wash. The only way they are going to make
you any money is if you get them cheap in decent shape. the value has
seemed to go flat over the last few years. Some of the sought after
ones have jumped, but even they have leveled off.

EMs can be CRAZY as an investment. woodrails and some wedgehead GTB
games are insane priced. The only way these are a good investment is
to get them cheaper than a restored piece. They seem to always go up
in cash, but you often search long and hard for the good ones.

Basicly, if you don't value your time then pinball can be a decent
profit center. When you throw your time in the mix you are better off
with a paper route.

Kirb


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RellikJM

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Sep 18, 2003, 9:56:40 PM9/18/03
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My thoughts were as supply drops price goes up. I'm buying a Safecracker for
$2795.00 and wondering if I were to sell it five years down the road would
it be worth at least that or a lot less. I know that what condition it is
kept in makes a huge difference. Assume minor HUO.

--
RellikJM
RellikJM AT Yahoo DOT Com
Don't forget about my "FREE" EPROM programming !
Advice is only worth what you paid for it!

"Kirb" <kirb...@yahoo.com> wrote in message
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GAPinhead

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Sep 18, 2003, 10:12:15 PM9/18/03
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Correct, but the other side of the equation is demand. A lot of TAF's out
there, but the demand is high. For instance, if an economic collapse happens,
the demand will be about 0 for pins, without changing the supply.

RellikJM wrote:

> My thoughts were as supply drops price goes up. I'm buying a Safecracker for
> $2795.00 and wondering if I were to sell it five years down the road would
> it be worth at least that or a lot less. I know that what condition it is
> kept in makes a huge difference. Assume minor HUO.
>
> --
> RellikJM
> RellikJM AT Yahoo DOT Com
> Don't forget about my "FREE" EPROM programming !
> Advice is only worth what you paid for it!
>

John!

www.georgiapinball.org

"I'm a Georgia Pinhead"

*remove SPAMTHIS to email*

Dave DeWinter

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Sep 18, 2003, 10:36:17 PM9/18/03
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"GAPinhead" wrote ...

> Correct, but the other side of the equation is demand. A lot of TAF's out
> there, but the demand is high. For instance, if an economic collapse
happens,
> the demand will be about 0 for pins, without changing the supply.

LOL. John, You're just hoping, so you can get a TAF cheap. :>)
--

Dave DeWinter

===================================================
"God grants liberty only to those who love it,
and are always ready to guard and defend it." -- Daniel Webster
===================================================


GAPinhead

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Sep 18, 2003, 10:56:52 PM9/18/03
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And pay for it with ones... no one will have change for anything bigger!

Hey I was an Ag Econ major... too bad pins are not a commodity!

Dave DeWinter wrote:

--

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