PSA backlog

[swarmee]

Plus, the modern market has been crashing hard and "investors" of the past couple of years seem over-leveraged in depreciating assets. If PSA hired 1,000 more and bought buildings to put them all in, it may not be the best decision in the long run. They have already announced their intention to open up multiple remote locations, but Southern California is an expensive place to run a company based on near minimum wage labor, with $500K houses the norm.

[Johnny630]

Originally Posted by swarmee

Plus, the modern market has been crashing hard and "investors" of the past couple of years seem over-leveraged in depreciating assets. If PSA hired 1,000 more and bought buildings to put them all in, it may not be the best decision in the long run. They have already announced their intention to open up multiple remote locations, but Southern California is an expensive place to run a company based on near minimum wage labor, with $500K houses the norm.

I have visions of PSA Grading Locations of Texas, Tennessee, and Florida, along with California and NJ for Autographs. That would be awesome.

[BobbyStrawberry]

Originally Posted by swarmee

Plus, the modern market has been crashing hard and "investors" of the past couple of years seem over-leveraged in depreciating assets.

I totally agree. This gets to the heart of my original question in that it seems then that their decision not to do more expansion of capacity is, in a way, admitting a lack of belief in their own product/service.

Contrast this with the approach SGC has taken, which seems to be "send us all your cards, we want more!"

[Paulcurlee1]

Originally Posted by BobbyStrawberry

I totally agree. This gets to the heart of my original question in that it seems then that their decision not to do more expansion of capacity is, in a way, admitting a lack of belief in their own product/service.

Contrast this with the approach SGC has taken, which seems to be "send us all your cards, we want more!"

That’s a really interesting perspective. Hard to not agree with!

[Mark17]

Originally Posted by BobbyStrawberry

I totally agree. This gets to the heart of my original question in that it seems then that their decision not to do more expansion of capacity is, in a way, admitting a lack of belief in their own product/service.

Contrast this with the approach SGC has taken, which seems to be "send us all your cards, we want more!"

SGC seems to have solved the backlog issue by using the primary economic principle from Econ 101: Backlog gets a little heavy, raise prices a bit, temporarily. Backlog gets down to normal levels, lower prices a bit to ensure steady flow of new submissions.

Result is, SGC can maintain service with reasonable timeframes for their customers, as well as some stability for their own business situation, with the managed submission rate.

Now they just need to establish a registry, preferably a non TPG specific one, to put themselves on even footing with PSA, among the registry crowd.

[Paulcurlee1]

Originally Posted by Mark17

SGC seems to have solved the backlog issue by using the primary economic principle from Econ 101: Backlog gets a little heavy, raise prices a bit, temporarily. Backlog gets down to normal levels, lower prices a bit to ensure steady flow of new submissions.

Result is, SGC can maintain service with reasonable timeframes for their customers, as well as some stability for their own business situation, with the managed submission rate.

Now they just need to establish a registry, preferably a non TPG specific one, to put themselves on even footing with PSA, among the registry crowd.

If they started a registry I would switch all my psa cards (which is 2/3 of my collection) over to sgc. For any sgc decision makers watching.

[Dead-Ball-Hitter]

Originally Posted by Paulcurlee1

If they started a registry I would switch all my psa cards (which is 2/3 of my collection) over to sgc. For any sgc decision makers watching.

I’d have a bunch to cross to SGC as well.

[swarmee]

Originally Posted by Mark17

Now they just need to establish a registry, preferably a non TPG specific one, to put themselves on even footing with PSA, among the registry crowd.

SGC won't do that, but if Who's Bobby?(tm) of VCP does it, they would be a beneficiary.