Non Big Three Grading Companies in 2024

[FromVAtoLA]

I was asking because there are numerous other grading companies - HGA, KSA, ISA, TAG, GMG, GMA, WCG, MGS, DSG, PGS, RCG, MNT, PGI, FCG, Ace, Arena Club, etc, etc. Several of them already use (or claim to use) AI. Why haven’t any of these moved into the top tier?
I’m also asking because as vintage collectors we’re really the tail attempting to wag the dog. Take a look at the most recent month of grading data. https://www.gemrate.com/january-2024-recap. If you’re trying to start or grow a competitor to PSA you would really want to focus on TCG/Pokemon and ultra-modern sports. Pre-war vintage is a complete afterthought – it’s such a tiny part of the market.
What also jumps out is PSA’s shear, near-monopoly dominance and their ability to maintain growth for an extended period of time. For all of the complaints about being expensive, slow, lacking customer service, etc they’ve established themselves as the brand that will increase the value of your card the most. And let’s face it, that’s what really matters to the vast majority of people in the hobby. And that’s why that laundry list of other companies I’ve mentioned haven’t been more successful.
There are only a handful of true “collectors” who aren’t interested in the financial implications of the grading process (and, yes, many of those are vintage collectors - but we've already established that those are a very small amount of the collectors). And most folks in the hobby don’t really want a perfect grading process. All they want is a company that has a reputation for increasing the value of their card the most. A whole lot of people want to open packs or hunt for raw cards, send them in for grading, and know that they’re more likely to receive a slabbed card that is worth more when it arrives in the mail. PSA has developed that reputation. (And, yeah, SGC has a bit of that reputation in the vintage market as well.) And with that reputation comes a reputation for handing out grades that don’t meet your expectations (because that’s how they maintain that reputation.) If the grading process wasn’t so subjective – why would you even bother to send in the card?
As listed above there are dozens (maybe hundreds?) of card grading companies that all share a very similar business model. Is yet another company using some variant of that same business model really going to matter? Does doing the exact same thing faster, cheaper, with better customer service, or better technology really matter? If the company’s slab is unknown and doesn’t create a premium price for your card what percentage of collectors will use them? (To find out, feel free to send your cards in to any of the companies I listed above and then try to sell them for a premium and let me know how it turns out. I’m genuinely interested!)
Perhaps the issue needs to be looked at differently. Perhaps we’re just stuck with this until a better business model comes along. For instance, if you can develop an AI model where you can take a picture with your phone and get a grade why do you even need a PSA? Maybe you just need an app that costs $19.99 a month or $1 a scan or something….What if a card was graded and embedded with a sensor or invisible ink and the card grade changed as standards changed over time. In 2025 centering is important, so your card is a 7. But in 2035, edges and coloring is more important and when your card is scanned people see that it’s an 8. There’s no slab needed, the invisible ink is untraceable but never goes away. All you need is this iphone app that scans invisible ink for $9.99 a month.
Anyway, I’m interested in the specifics of these types of queries because I’m skeptical. Even if the Net54 card slab debuted tomorrow for $4, with a guaranteed 36-hour turn around, and Leon personally told you the status of your card every hour, would it really move into the top tier alongside PSA and SGC?

Originally Posted by ClementeFanOh

From VAtoLA- I'm a little surprised to read your question. There's been
commentary worthy of War and Peace on this venue, in regard to viable
options to the Big 3 graders. The very shortest version is that a worthy
4th (or 5th) could provide competition in the industry that ultimately
benefits the consumer, by forcing the others to do better. That's the hope.

Trent King