Excited for CCG (CSG)?

[Tyruscobb]

Although competition generally benefits consumers (e.g. lower prices, better service, etc.), I’m skeptical that any new third-party grader will help solve the hobby’s biggest problem - altered cards receiving numerical grades and over-grading.

The reason is the vintage fee structure. Most TPGs do not have a flat fee. Instead, the fee varies depending on the card’s value. This creates a subconscious financial incentive (and, unfortunately, probably a conscious one for some TPGs) to over-grade. Over-grading increases the card’s price, which, in turn, increases the fee. An increased fee increases the company’s profitability, which, in turn, may increase the grader’s pay. The current vintage fee structure has too many interest conflicts that have created the current problems.

Removing the financial incentive to over-grading is what needs to happen to fix the problem. TPGs should charge a flat fee to grade a vintage card whether it is a beater or a gem-mint 10. The fee should not vary depending on whether the card comes back a Poor 1 or gem 10. So, unless any new grader uses a flat vintage fee, the problem will continue.

A new TPG will make the existing TPGs improve their services and fees, as well as reduce turnaround times. However, any new TPG that uses the same vintage fee is equivalent to putting a bandage on a bullet wound - it will not cure the underlying problem. It may temporarily improve the situation, but eventually even a new TPG’s actual graders will fall victim to the above-referenced dilemma - increasing the company’s bottom line.

[tiger8mush]

Originally Posted by Tyruscobb

I’m skeptical that any new third-party grader will help solve the hobby’s biggest problem - altered cards receiving numerical grades and over-grading.

well said

[Eric72]

Originally Posted by Tyruscobb

...I’m skeptical that any new third-party grader will help solve the hobby’s biggest problem - altered cards receiving numerical grades and over-grading...

This.

The number of altered cards that get numerical grades is alarming. Trimming has become so prevalent, it seems as though most PSA holders could double as maracas.

[Usc1]

Originally Posted by Eric72

This.

The number of altered cards that get numerical grades is alarming. Trimming has become so prevalent, it seems as though most PSA holders could double as maracas.

I don’t this problem will ever be resolved unfortunately. Maybe even get worse with improving technology.


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[Eric72]

Originally Posted by Usc1

I don’t this problem will ever be resolved unfortunately. Maybe even get worse with improving technology.


Sent from my iPhone using Tapatalk

In a perfect world, technology would also improve on the alteration detection front.

I know, I know. Dream the impossible dream...

[hockeyhockey]

what's the latest on CCG starting up? i'm not well-versed on this, so apologies if this is a dumb question.

[Leon]

Originally Posted by hockeyhockey

what's the latest on CCG starting up? i'm not well-versed on this, so apologies if this is a dumb question.

Here is one of their press releases from last week.,.,

CERTIFIED COLLECTIBLES GROUP
P.O. Box 4776
Sarasota, FL 34230

Contact:
Janell Armstrong, Marketing Coordinator
941.360.3990 ext. 236
jarmstrong@collectiblesgroup.com
CSG Attending Sport Card Expo Virtual Edition
SARASOTA, Fla. (November 20, 2020) — The lead sports card graders from Certified Sports Guaranty™ (CSG™), Andy Broome and Westin Reeves, are excited to attend the Sport Card Expo Virtual Edition, taking place online, November 21 and 22, 2020.
Broome and Reeves will be on the mainstage on Saturday, November 21, from 3:00 to 3:45 pm EDT, to share information and answer questions about CSG’s soon-to-launch sports card authentication, grading and encapsulation services.
They will also be available to chat at the CSG virtual booth on November 21, from 11:00 am to 12:00 pm EDT and from 4:00 to 5:00 pm EDT, and on November 22, from 11:00 am to 12:00 pm EDT.
CSG is the latest company to be formed by the Certified Collectibles Group® (CCG®), which also includes the world’s largest and leading grading services for coins, paper money, comic books and related collectibles. Since 1987, the CCG companies have certified nearly 60 million collectibles with a combined fair market value of more than $30 billion.
Just as with CCG’s other categories, CSG will revolutionize sports card grading by leveraging world-class expertise, advanced technology, innovation and operational excellence.
More than any other third-party sports card grading service, CSG will use advanced authentication and grading technology to make the certification process more precise and efficient. Artificial intelligence (AI) will help to automate many of the more time-consuming aspects of grading, and the CSG graders will be equipped with forensic devices that reveal alterations and hidden details through ultra-microscopic inspections as well as non-destructive ink and paper analysis.
The CSG holder and label will also be game-changers in the industry. The holder is sleek and strong, offering superior display and protection. The label is bold and clear, providing a detailed description of the card, its grade, its unique CSG certification number and a QR code to facilitate quick verification. Both the CSG holder and label include extensive security features to prevent against tampering and counterfeiting.
Collectors will also appreciate that the CSG Guarantee of authenticity and grade will be the strongest of any third-party sports card grading service.
Want to learn more? Don’t miss CSG at the Sport Card Expo Virtual Edition! Visit sportcardexpo.com for more information.
About Certified Collectibles Group® (CCG®)
CCG comprises seven of the world’s leading collectibles services companies: Numismatic Guaranty Corporation® (NGC®), Numismatic Conservation Services™ (NCS®), Paper Money Guaranty® (PMG®), Certified Guaranty Company® (CGC®), Classic Collectible Services® (CCS®), Authenticated Stamp Guaranty® (ASG® ) and Collectibles Authentication Guaranty® (CAG®). The CCG companies provide expert and impartial services that add value and liquidity to a wide variety of collectibles, including coins, banknotes, comic books, magazines, concert posters, stamps and estate items. An eighth company, Certified Sports Guaranty™ (CSG™), will soon provide expert authentication and grading services for sports cards. Today, the CCG companies have certified nearly 60 million collectibles and maintain offices in Sarasota, Florida; London, England; Munich, Germany; and Shanghai and Hong Kong, China. To learn more, visit collectiblesgroup.com

© 2020 Certified Collectibles Group. All rights reserved.
NGC, NCS, PMG, CGC, CCS, ASG, CAG, CSG and CCG are the registered trademarks or unregistered trademarks of Numismatic Guaranty Corporation of America, and/or its related companies in the United States and/or other countries. All other names and marks referenced in this release are the trade names, trademarks, or service marks of their respective owners.



.

[3-2-count]

Thanks Leon. I missed this press release!

I hope these guys come out swinging and kick A$$....

[oldeboo]

Originally Posted by Leon

More than any other third-party sports card grading service, CSG will use advanced authentication and grading technology to make the certification process more precise and efficient. Artificial intelligence (AI) will help to automate many of the more time-consuming aspects of grading, and the CSG graders will be equipped with forensic devices that reveal alterations and hidden details through ultra-microscopic inspections as well as non-destructive ink and paper analysis.

That's a big statement. Looking forward to seeing how this plays out.

[Bram99]

Originally Posted by Tyruscobb

Although competition generally benefits consumers (e.g. lower prices, better service, etc.), I’m skeptical that any new third-party grader will help solve the hobby’s biggest problem - altered cards receiving numerical grades and over-grading.

The reason is the vintage fee structure. Most TPGs do not have a flat fee. Instead, the fee varies depending on the card’s value. This creates a subconscious financial incentive (and, unfortunately, probably a conscious one for some TPGs) to over-grade. Over-grading increases the card’s price, which, in turn, increases the fee. An increased fee increases the company’s profitability, which, in turn, may increase the grader’s pay. The current vintage fee structure has too many interest conflicts that have created the current problems.

Removing the financial incentive to over-grading is what needs to happen to fix the problem. TPGs should charge a flat fee to grade a vintage card whether it is a beater or a gem-mint 10. The fee should not vary depending on whether the card comes back a Poor 1 or gem 10. So, unless any new grader uses a flat vintage fee, the problem will continue.

A new TPG will make the existing TPGs improve their services and fees, as well as reduce turnaround times. However, any new TPG that uses the same vintage fee is equivalent to putting a bandage on a bullet wound - it will not cure the underlying problem. It may temporarily improve the situation, but eventually even a new TPG’s actual graders will fall victim to the above-referenced dilemma - increasing the company’s bottom line.

I’m sympathetic to this argument but it doesn’t answer a key issue: prices in every realm of the economy help find equilibrium between supply and demand. A big problem now is that people are sending in very inexpensive cards relative to the grading fee. You see it even with vintage where the grading fee is close to the value of certain vintage commons. A modification of this idea would be to set the grading fee on a scale based on the SMR value of a certain grade of the card, regardless of actual grade. This could have the same benefits of the above plan with the added benefit of metering the demand more.