Quote:
Originally Posted by japhi
That capital lending program is smart. Really everything PWCC has built is pretty brilliant. Which is what's so crazy to me about all of this - he never had to collaborate with card doctors, or shill bid, to build the biggest business in the segment. His greed could take it all out. Crazy amount of risk to take when you have a superior business model.
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Here is the thing. You are assuming that the capital lending program is a smart business move unrelated to the (presumed) shady business practices.
My collection probably isn't worth half of what someone upthread paid for one card, so I've got no dog in this fight. Here is what I see from the outside looking in: We are in a period of not only rapid price increases, but also extreme price volatility. Companies like PWCC are mostly insulated from the volatility. Certainly, their fees will vary with the price realized, but they have no equity in the transaction. They are just taking a percentage off the top. Now enter their willingness to lend money to folks to bid with in advance of their particular consignments sell.
Maybe it is just me, but this makes PWCC look less like a clearinghouse for selling ephemera and a lot more like a casino. Lure them in with stories of the big score (which may or may not be supported by questionable practices), tell them you'll sell their cards for a piece of the action, then front them the money against the transaction which allows the company to grab another piece of the pie for themselves. The only thing missing is some goons to help collect.
