PSA Economy – Ground Truth

[Johnny630]

Originally Posted by 53toppscollector

I think there are 2 things to consider:

1. From a business perspective only, PSA is better off grading fewer cards at a higher price to meet their targets. Grading 500,000 cards at an average cost of $100 per card is $50M. Grading 1,000,000 cards at $50 per card gets you the same $50M, but with more actual work/labor. Obviously. It has been in PSA's interest to keep only a few service levels open, at much higher prices. And if they were hurting moneywise, I suspect they'd have opened up more service levels, but I am guessing they've received a steady stream of cards at Express and Super Express over the last few months.

2. Nat Turner has talked a good game about the importance of the set registry and the ability to grade base cards at a reasonable price. But people sending in 5th year Craig Biggio cards at $8 per card is basically how we got into this backlog. The set registry is important, it is basically what got me back into the hobby 5 years ago, even though my stance on it has changed drastically in the last 18 months. I suspect bulk/value will come back eventually, at something like $20 per card, but with massive turnaround times (12-18 months minimum)

I think what we have learned, if nothing else, is that PSA is still the gold standard in terms of grading, despite all of their obvious flaws. They clearly know that too, and know that they can pretty much set the terms at this point, and a big portion of the hobby base will just go with whatever they offer. SGC seems to have picked up some small market share, but not enough to worry PSA at all. And Beckett appears to mostly just be a lost cause at this point

James you're very well spoken. I agree :-)