Collectors (PSA) Acquired SGC

[ClementeFanOh]

Parkplace- good meme. Sadly, the wrong TPG is left standing after the
Thanos finger snap

Trent King

[ricktmd]

I have been part of the window covering industry for many years. The largest company in the window covering world is Hunter Douglas. Hunter's sales in 2021 were 4.6 Billion. They have purchased a wide variety of related companies for one of a few reasons.
1- Taking over a customer base an increasing distribution.
2- Proprietary products or technology
3- An off shoot of 1. Buying your competitor means less competition while at the same time bringing in the purchased companies revenue. It is likely PSA can run the company with the same or similar staff on the corporate side increasing profitability.

Hunter has let some companies continue under their own banner. Typically, its business as usual for the 1st year or so. Over time the original company disappears and becomes Hunter sometimes with the original companies name, sometimes not

Because SGC has a large and loyal customer base and is true competition for PSA , it made sense for PSA to take them over. Clearly, they did not buy SGC for #2 (proprietary products or technology) or a handful of graders.

While not a perfect analogy PSA took out their toughest competition and will now be SGC as well for as long as it suits them. I also believe (and hope) that SGC graded cards should hold up at least on vintage as they are well respected

[Mike D.]

The numbers I have seen suggest that PSA already had a 78% market share, so adding SGC bumps them to around 85%. In theory, 78% is already a monopoly.

[Peter_Spaeth]

Originally Posted by Mike D.

The numbers I have seen suggest that PSA already had a 78% market share, so adding SGC bumps them to around 85%. In theory, 78% is already a monopoly.

By the sum of the squares test, this acquisition adds about 1000 points to an already highly concentrated market, which is a lot.

[jsfriedm]

My best guess, and I have no special information, is this:

1)PSA will eventually absorb SGC
2)In the long run, SGC slabs will lose value once the brand is defunct
3)When PSA absorbs SGC, however, they will take care not to alienate SGC devotees, which means they will offer a discounted crossover rate and, while they will not officially or automatically crossover at the same grade, they will *wink-wink-nudge-nudge* crossover in a much more generous manner, generally at the same grade unless it seems egregious.

[Fred]

Originally Posted by jsfriedm

My best guess, and I have no special information, is this:

1)PSA will eventually absorb SGC
2)In the long run, SGC slabs will lose value once the brand is defunct
3)When PSA absorbs SGC, however, they will take care not to alienate SGC devotees, which means they will offer a discounted crossover rate and, while they will not officially or automatically crossover at the same grade, they will *wink-wink-nudge-nudge* crossover in a much more generous manner, generally at the same grade unless it seems egregious.

Just curious - how much lost value is anticipated? Is the anticipated lost value the difference between a "raw" card and one that is in a PSA slab? Is it being predicted that a card in an SGC holder will lose all value related to a TPG examination?

[jsfriedm]

Originally Posted by Fred

Just curious - how much lost value is anticipated? Is the anticipated lost value the difference between a "raw" card and one that is in a PSA slab? Is it being predicted that a card in an SGC holder will lose all value related to a TPG examination?

I couldn't give you an exact amount. I'm just guessing. My guess is that the card in the SGC holder would sell for a lower percentage of its PSA equivalent than it does now.

[bnorth]

Originally Posted by jsfriedm

My best guess, and I have no special information, is this:

1)PSA will eventually absorb SGC
2)In the long run, SGC slabs will lose value once the brand is defunct
3)When PSA absorbs SGC, however, they will take care not to alienate SGC devotees, which means they will offer a discounted crossover rate and, while they will not officially or automatically crossover at the same grade, they will *wink-wink-nudge-nudge* crossover in a much more generous manner, generally at the same grade unless it seems egregious.

I am really hoping for #2 to happen now even if SGC doesn't close right away. I love hearing those say they are now holding off on sending SGC cards. If enough people panic I can buy their SGC slabbed cards cheap.

[Johnny630]

I wonder how many people are sending or trying to cross over now? I'm sure this will all be the talk at the Philly Show.

It's been about five years but SGC formerly would grade on site at the Strongsville Show it was Great. With the new larger location this year, no longer the Best Western/Holiday Inn, I would hope they can find a way to do on-site. It was so nice to be able to get your cards graded in person at that show. SGC is or was a favorite to many vintage collectors. The Strongsville Show always was considered the best mainly Vintage Show of the year other than the National.