PSA Business Strategy...

[usernamealreadytaken]

Let me run this theory by you...
PSA (like all card grading companies) don't actually offer anything (other than a holder). Accordingly, their profit, is effectivly unlimited as their costs are basically fixed. The only limit is the number of cards submitted for grading. Think about this: unlike products or services which need to be repurchased or serviced (i.e. lawnmower, parts/service), once a card is graded, that is it. However, PSA rolls out the half-point grade service. This effectively allows them to grade a ton of cards AGAIN! Do you think rolling out the half point grade scale was a reaction to collectors wanting more "accurate" grading, or for PSA to realize double profits from garding the same cards twice through resubmissions?

[Leon]

I think it was to make more money. It was a great marketing move.

[drc]

Money was a major part of it. As you say, they're a company that does things to make money. That, however, doesn't mean PSA and some of their collectors didn't think .5 grades was a good idea anyway.

[barrysloate]

It was unquestionably a marketing move, and nothing more.

But they do have fixed costs. They do have to pay graders a salary (I've heard a rumor the graders are chained to their desks and are only given bread and water, but I have not been able to confirm this). Also, I'm sure the heat sealing machinery needs regular repairs.

[ethicsprof]

barry s.,
i have heard that such caloric deprivation can lead to hypoxic brain injury, resulting in thes individuals' giving grades to trimmed cards.
i do wonder if such harsh working conditions are limited to any one company, however.
best,
barry

[barrysloate]

Barry A.- however you look at it...it's bad.

[T206Collector]

Originally Posted by usernamealreadytaken

Do you think rolling out the half point grade scale was a reaction to collectors wanting more "accurate" grading, or for PSA to realize double profits from garding the same cards twice through resubmissions?

There were about a dozen threads on this when PSA rolled out the half-point grades. Some of them got pretty entertaining, based on the "controversial" decision not to reduce grades by a half point.

If they were really serious about getting it right, as opposed to making a profit, they would also downgrade cards when appropriate. By guaranteeing that your card could only go up, they were maximizing submissions and thus revenue.

Just another reason PSA will not be getting me back as a customer any time soon.

[jboosted92]

Originally Posted by T206Collector

There were about a dozen threads on this when PSA rolled out the half-point grades. Some of them got pretty entertaining, based on the "controversial" decision not to reduce grades by a half point.

If they were really serious about getting it right, as opposed to making a profit, they would also downgrade cards when appropriate. By guaranteeing that your card could only go up, they were maximizing submissions and thus revenue.

Just another reason PSA will not be getting me back as a customer any time soon.

Wouldnt surprise me to see 1/4 grades ...Ex 5.25 5.75

[T206Collector]

Originally Posted by jboosted92

Wouldnt surprise me to see 1/4 grades ...Ex 5.25 5.75

Actually, they're going to move to a 20 point scale. And all 10s will have to be resubmitted to see if they qualify for a 20.

[Rich Klein]

At one pt we had a "65" scale; now it's a "70" scale. Don't be surprised to see further iterations to "upgrade" cards in the future

[JasonL]

they send you a letter saying that your card was altered and as such will be destroyed, or sold on their own auction site, whichever is deemed most appropriate. You will be billed for the listing fees and roundly criticized in a public forum for trying to defraud them.

[vintagetoppsguy]

Originally Posted by T206Collector

If they were really serious about getting it right, as opposed to making a profit, they would also downgrade cards when appropriate. By guaranteeing that your card could only go up, they were maximizing submissions and thus revenue.

I couldn't agree more.

[Browncow75]

In my opinion, the card registry on PSA and SGC are an extension of their marketing strategies to make more money in the long run. People spend money on getting cards graded, so they can show off their high end collections, and now with the half point grading scale, the chance to be even "better" than the next guy will prompt re-grading of some of those cards. I may be wrong but thats kinda how I see it.

[FUBAR]

Originally Posted by JasonL

they send you a letter saying that your card was altered and as such will be destroyed, or sold on their own auction site, whichever is deemed most appropriate. You will be billed for the listing fees and roundly criticized in a public forum for trying to defraud them.

This reminds me of a story...

I sold some high end o-rings to a customer once and he sent them in for testing to make sure conformed to certain standards that his engineer requested. Now mind you this is about 20 o-rings and the dollar amount was about 12k. He receives a letter back fromt he standards board stating....

Your orings met all standards as outlined. We cannot return any of your "samples" to you as we needed to do destructive testing to determine their conformance!

so in other words, the only way to see if the part was acceptable is too destroy it!!

[DavidW]

i think eventually there will be a need to reslab all our cards due to proliferation of fraudulent slabs. PSA may already be envisioning the day they'll release the new and improved slabs that can not be duplicated.

[Cowboy Fan]

Three letters sums what I think of PSA and yes the half point grade was nothing but a money maker for Joe and the boys.

S G C