Card Grading Costs - what am I missing

[Carter08]

Same question

[ullmandds]

I would have to assume that many of these cards selling for around or less than the cost of the actual grading service were graded a while ago at a lesser cost than todays fees.

[jingram058]

OMG, here we go again.

If you are collecting cards as an investment, worried about such things as wrinkles, trimming, etc., by all means have your cards graded. Not much of a fun hobby, unless you're one of the beautiful people who can throw around a lot of money without giving it a thought.

You can just collect cards, hold them in your hands, and discuss the history with others. That's what I do, and so do the others around here where I live. That's a real hobby, pretty much as it always was, except that even the raw cards cost A LOT more these days.

I like the discussion here on net54, and have bought the majority of my latest collection additions here, and some trades too.

But make no mistake. The vast majority here at net54, and the other forums too, are all about graded cards.

It just is what it is.

[4815162342]

Originally Posted by ullmandds

I would have to assume that many of these cards selling for around or less than the cost of the actual grading service were graded a while ago at a lesser cost than todays fees.

+1

Also, though I believe it refers more to modern than pre or post war vintage, some are calling this the “Junk Slab Era.”

[swarmee]

1) Up until about 4 years ago, you could get PSA grading in bulk for inexpensive cards about $6/card.
2) It's a human condition to overgrade your cards in your own mind, so people regularly submit cards they think are NM when a true result is that they are only EX 5s.
3) PSA has ebbed and flowed over the years with grading to their published standards, and people currently believe they are MUCH tougher than normal on cards from the 70s and 80s than ever before.
4) Once a card has been graded low, there's less of a demand for it, because it no longer has much "upside" (unless you're buying to trim the card and resubmit hopefully for a higher grade).

If you've been gone 15 years, recommend you read some threads over at Blowout covering the trimming scandal.
https://www.blowoutforums.com/showthread.php?t=1298835

[jimq16415]

Originally Posted by ullmandds

I would have to assume that many of these cards selling for around or less than the cost of the actual grading service were graded a while ago at a lesser cost than todays fees.

I remember PSA having monthly specials where it cost as low as $6 each to get them graded but at those prices you sometimes didn't get them back for 2 months!

My oldest sub in their file was 45 cards at $6 each, rec 7/10/2006 and shipped back to me 7/21/2006 for $6 each. My highest value was $250.

Times have changed. Yesterday I sent 1 card and it was more than that sub of 45 cards!

[Carter08]

There are a bunch of 1970s Topps cards with brand new psa certs that are worth and sell for about $10 or less. A 1975 Topps Fergie Jenkins psa 6 will sell for less than $10 for example. Who recently graded that and why? There is something missing in the pricing model. The only thing I can think of is someone was hoping for a 9 and is just cutting their losses.

[Aquarian Sports Cards]

cost averaging. If you submit 1000 cards the wins make up for the losses (if you're any good at grading) So on the lower grade cards you make what you can and move on.

[raulus]

James might feel otherwise, but not all cards are graded in an attempt to turn a quick buck.

[Carter08]

Originally Posted by raulus

James might feel otherwise, but not all cards are graded in an attempt to turn a quick buck.

Very insightful. Many of the folks selling these recently graded cards for less than $10 are dealers who, presumably, are not looking to lose money. I think the OP and I are trying to figure out how this makes sense.

[Snowman]

Originally Posted by Aquarian Sports Cards

cost averaging. If you submit 1000 cards the wins make up for the losses (if you're any good at grading) So on the lower grade cards you make what you can and move on.

^^This

There are a ton of cards that yield a nice profit if you can get a 10 on them but that you'll lose money on if they come back as a 9. If you're good at grading and you are say ~80-90% accurate with your grades that you expect 10s on, then you'll turn a nice profit and you can just sell the 9s at a loss.

[BioCRN]

I imagine it's a lesser amount of people, but I've run into a few of this type of seller with graded cards...

Sometimes someone will submit 2-3+ of a certain card hoping for a 10 (or similar high mark given the issue) so they can keep one for their collection. When a 10 is practically unobtainable or existing copies are sky-high in pricing, the gamble can outweigh just outright buying it (if they can buy it at all).

The leftovers are the cost of doing business hunting for the gem out the submitted ones. Occasionally they'll get multiples of the high mark card and occasionally they're just looking to recoup any of the gamble cost.

[steve B]

Originally Posted by Aquarian Sports Cards

cost averaging. If you submit 1000 cards the wins make up for the losses (if you're any good at grading) So on the lower grade cards you make what you can and move on.

That's the explanation I got the first time I saw a dealer with a ton of graded cards at a show.
Hundreds of late 50's commons at below the standard fee.

They would essentially submit an entire collection less any obviously bad cards and the handful of great ones paid for the lower grade cards. The bulk mid grade commons pretty much just covered the bulk submission fees.

[Snowman]

Originally Posted by steve B

That's the explanation I got the first time I saw a dealer with a ton of graded cards at a show.
Hundreds of late 50's commons at below the standard fee.

They would essentially submit an entire collection less any obviously bad cards and the handful of great ones paid for the lower grade cards. The bulk mid grade commons pretty much just covered the bulk submission fees.

Always amazes me when I see dealers doing this. I always think it's really not that difficult to learn how to grade accurately, but then again, I'm someone with clinically diagnosed OCD and my attention to detail is certainly abnormal. A lot of experienced dealers simply don't know how to grade cards, and seemingly aren't capable of learning how to either. I remember Jason Koonce speaking in an interview once about how much more difficult it is to train graders than he thought it was going to be when he first started ISA. And given the inconsistency we all see now from PSA as they've grown to over 100 graders, they clearly struggle with it as well.

[Zach Wheat]

Originally Posted by Aquarian Sports Cards

cost averaging. If you submit 1000 cards the wins make up for the losses (if you're any good at grading) So on the lower grade cards you make what you can and move on.

I think this is exactly what you are seeing.

[Bigdaddy]

Originally Posted by Aquarian Sports Cards

cost averaging. If you submit 1000 cards the wins make up for the losses (if you're any good at grading) So on the lower grade cards you make what you can and move on.

It's like being able to sell your losing lottery tickets while holding out for a winner.

[raulus]

Originally Posted by Bigdaddy

It's like being able to sell your losing lottery tickets while holding out for a winner.

Maybe the owner of that 20 million card collection can use this approach to make the math work when getting that collection graded.