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Originally Posted by WhenItWasAHobby
Agreed. It's truly astounding how they've managed to pull this off for so long with no major repercussions and even more amazing, I noticed their stock price is still on the increase. Is it just a big confidence scheme with slick marketing, aggressive and slick damage control with a low-cost, minimal-skill service?
Think about this. PSA was founded in 1991 before the internet took off. Hypothetically, let's say one founded the company with the mindset that it would be next to impossible for customers on a mass scale to measure or detect the quality of your service, then the exposure to "buy back" liability would be practically non-existent. Furthermore, what budget did they set aside annually to improve the quality for detecting alterations? Fast forward 15-20 years, where massive problems have been brought to light either by admissions of doctoring or by viewing "before and after" photos of doctored cards bought and sold - all through the internet. The fact the PSA has shown no effort to fix these problems over such a long period of time is very telling in my opinion and warrants answers from PSA regarding the intent of their business model and quality of service.
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The reason this has gone on for so long is something we have said and repeated many times: they have an amazing ability to mint money for their clients. And as long as they continue on that path, who is going to challenge them? Customers who make money are happy customers.
They may not be very good at grading or authenticating, but they are geniuses when it comes to making a lot of money for a lot of people. And that is the reason for their continued success.