Posted By:
warshawlawI would not consider selling decent vintage cards "raw"; you leave too much money on the table.
I see the card grading decision as breaking down into 2 basic categories: grading typical cards and grading rarities. Graded cards from popular "basic" sets (T206, T205, E90-1, 1933 Goudey, etc.) definitely get a premium in the middle and higher grades (vg-ex to ex-mt, 4-6) simply because the slab takes some (most) of the BS out of the process--I HATE getting a card described as ex with a bunch of creases in it. I also would absolutely grade HOFer cards from the really popular pre WWI sets that are g-vg or better because there are a lot of us out there who collect them and will pay a decent premium to avoid receiving overgraded p-f cards. That said, I don't think you will get more than a 10%-20% bump for a slabbed specimen over an accurately graded unslabbed card, but finding that accuracy is the killer. In short, I pay for the convenience of having had SGC or GAI pass on the card before I buy it and I am pretty sure that others do too.
You can chuck the book and go with whatever you feel is merited for rarer cards and for prewar cards in high (7+) slabbed grades. As a collector, my rule of thumb for pricing those kinds of cards is to decide what I want to get from the card to be happy to part with it, and that's what I ask. I am content to hold the card forever if I can't get a price that really excites me because it is a solid item that is not going anywhere unless the whole darn shooting match heads south on us, in which case we are all screwed. Plus, I know I can always trade a rare card for something I like better if it comes along.
If I was a full-time dealer, I would probably analyze the slabbing issue as a value-added decision: does the slab add enough value to cover the cost and boost my ROI (return on investment) sufficiently for me to go to the trouble of the process? So, if I had a card that I purchased for $30 and that routinely sells for $40 ungraded and $60 graded, and it costs me $10 to grade it, I would probably do it to boost my ROI (return on investment) from 33% to 50% ($40-$30=$10; $10/$30=33 1/3%. $60-$40=$20; $20/$40=50%). I also would have to consider how fast I can get out of the deal with my cash. A 10% profit in a week is way better than waiting a year to wring out a full retail 50% profit (10% in a week is equivalent to an annual 520% gain). If you can sell the raw card in a week but need to get maximum retail once you've slabbed the card in order to make a decent gain, slabbing is a loser.
Isn't math fun??