Sgc price change

[chalupacollects]

Originally Posted by Yastrzemski Sports

All of the tpg have raised their prices. They almost have to do it to slow submissions. People are sending in cards that are worth $15 or less in a 10. Maybe the price change will force people to think hard about what they are submitting.

i call BS on that one...What other industry raises prices because they have "too much business," and are trying to drive customers away....

Nope trying to maximize profits and keep costs down is what they are doing...Business 101...

[GeoPoto]

Originally Posted by chalupacollects

What other industry raises prices because they have "too much business," and are trying to drive customers away....

I would think every business that has more orders at current prices than it can satisfy, raises its prices. Higher prices help "maximize" profits in the short run, help allocate the available capacity to the customers that value it the highest (it is misleading, but accurate to view this as "trying to drive customers away"), and provide the incentive and investable capital necessary to expand capacity in the longer term. I'm not sure why you view this as inconsistent with Economics 101.

[Yastrzemski Sports]

Originally Posted by GeoPoto

I would think every business that has more orders at current prices than it can satisfy, raises its prices. Higher prices help "maximize" profits in the short run, help allocate the available capacity to the customers that value it the highest (it is misleading, but accurate to view this as "trying to drive customers away"), and provide the incentive and investable capital necessary to expand capacity in the longer term. I'm not sure why you view this as inconsistent with Economics 101.

+1.
With a 6-10 month backlog at every tpg, they have more business than they can handle. Keeping prices low will perpetuate that problem. PSA just hired a bunch of new graders. In time, when they catch up, and need more business to keep all of those employees busy, they can bring prices back down to encourage orders. In other words, Eco101 - supply and demand.

[steve B]

Originally Posted by chalupacollects

i call BS on that one...What other industry raises prices because they have "too much business," and are trying to drive customers away....

Nope trying to maximize profits and keep costs down is what they are doing...Business 101...

I know bicycle custom framebuilders who have waitlists in the 5 year range.
Their recommendation to a newer builder who wasn't comfortable with his waitlist getting to 3 years? Raise prices until the waitlist gets back to where you're comfortable.