View Single Post
  #72  
Old 05-24-2019, 04:40 PM
Peter_Spaeth's Avatar
Peter_Spaeth Peter_Spaeth is offline
Peter Spaeth
Member
 
Join Date: Apr 2009
Posts: 30,760
Default

Quote:
Originally Posted by Dpeck100 View Post
They certainly aren't using predatory pricing. PSA has gradually raised their prices. Even with the recent price increase volume is up. If they were charging too much submission volumes would fall and they haven't. Quite frankly if per card pricing was what it was just a few years ago their backlog wouldn't be 700,000 it might be 1,200,000. I have a stack of cards I would love to sub but you need to get to 100 to get to $8 a card. Most of the cards I collect aren't super expensive so the break even point per card has been elevated significantly and so you have to make decisions based on those economics.

I do think there is a point where they could choke off lots of demand so there is a balancing act with prices that is healthy. The secondary market resale value is what drives a lot of submissions and if people are always losing they will pull back or quit all together.

I routinely see people selling low grade modern wrestling cards that never had a chance to be a winner to begin with and with a lower grade have very little value even after grading. If prices move up too much these type submissions dry up quickly. PSA needs these and so keeping prices low enough to entice submissions is paramount and high enough to limit demand. Not easy.
Predatory pricing is actually charging UNDER cost in an effort to drive out competitors. If you meant that it wasn't clear to me, sorry.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at
https://www.jamesspaethartwork.com/

He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt.

Last edited by Peter_Spaeth; 05-24-2019 at 04:41 PM.
Reply With Quote