Posted By:
JoannActually, one way this works is if the dealer adds an upcharge to Jim in exchange for allowing a return privilege based on Kevin's opinion.
It compensates the dealer for a slightly higher risk in the sale. He can sell an SGC graded card to X for $5K, or he can sell it to Jim for $5K with the Kevin-return agreement. Why would he not simply sell to X, who is willing to take it for $5K with no conditions? The upcharge makes the added risk (and possible admin related to a return) worth his while.
The question of value added by Kevin's endorsement is also addressed in that the original dealer at least gets some of the additional value (although some should also rightly go to Jim who is paying for the endorsement).
This motivates both people in the supply chain (buyer and seller) to support the use of Kevin's review and endorsement.
Joann