SGC Going Away?

[Snowman]

Collectors is still investing money into the SGC brand. They are making improvements on the backend database and hiring more graders while the vacuous halfwits on YouTube and Blowhard sound their false alarms.

Collectors will continue to keep SGC around as long as the hobby continues to demand their services. Why? Because they'd be stupid not to. They know that a significant percentage of loyal SGC customers would take their business to CGC, BVG, or MBA instead, and that could open the door for someone like Fanatics to scoop them up and start chipping away at the PSA market share. A lot of these customers grade with SGC because they don't like PSA, and them shutting down SGC isn't going to change that. Keeping SGC in play gives PSA a moat. And they can't just steal all their graders without creating a new PSA location in Florida because most of those guys aren't going to move across the country so they can grade cards in LA or New Jersey.

As long as SGC continues to thrive (and they very much are - they even had to increase their turnaround times recently because they're swamped), Collectors will keep keep them open because their added value as an alternative grading option far exceeds the value that they would get from stealing their graders and offering crossover specials.

[Vintagedeputy]

Originally Posted by Snowman

Collectors is still investing money into the SGC brand. They are making improvements on the backend database and hiring more graders while the vacuous halfwits on YouTube and Blowhard sound their false alarms.

Collectors will continue to keep SGC around as long as the hobby continues to demand their services. Why? Because they'd be stupid not to. They know that a significant percentage of loyal SGC customers would take their business to CGC, BVG, or MBA instead, and that could open the door for someone like Fanatics to scoop them up and start chipping away at the PSA market share. A lot of these customers grade with SGC because they don't like PSA, and them shutting down SGC isn't going to change that. Keeping SGC in play gives PSA a moat. And they can't just steal all their graders without creating a new PSA location in Florida because most of those guys aren't going to move across the country so they can grade cards in LA or New Jersey.

As long as SGC continues to thrive (and they very much are - they even had to increase their turnaround times recently because they're swamped), Collectors will keep keep them open because their added value as an alternative grading option far exceeds the value that they would get from stealing their graders and offering crossover specials.

Agreed 110%

[GeoPoto]

I will be surprised if PSA keeps SGC going indefinitely. Surely, they are working towards merging whatever management, administration, logistics, grading, and slabbing functions aren't already merged. That would be Aquisitions 101. The tipping point will arrive when the IT department is ready to add SGC-graded cards to the registry. Operating two businesses that do essentially the same thing can't make sense. SGC-style slabs may become an option to appease tuxedo aficionados, but grading standards, customer service, and anything else users care about will become one and the same, if they haven't already.

[notfast]

Seems like a lot of people commenting would have their heads explode if they knew what brands nestle, proctor and gamble and Johnson and Johnson owned.

[Aquarian Sports Cards]

Originally Posted by notfast

Seems like a lot of people commenting would have their heads explode if they knew what brands nestle, proctor and gamble and Johnson and Johnson owned.

how about the most terrifying phrase of the 1980's. Backfired spectacularly because it freaked people out. At the end of half of every TV commercial - "We're Beatrice"

[cgjackson222]

Originally Posted by Aquarian Sports Cards

how about the most terrifying phrase of the 1980's. Backfired spectacularly because it freaked people out. At the end of half of every TV commercial - "We're Beatrice"

Haha, "We're Beatrice" was freaky indeed.

https://www.youtube.com/watch?v=WV5Mb_zZPPs

https://www.youtube.com/watch?v=Gch72L5vJPA

[vintagebaseballcardguy]

Originally Posted by cgjackson222

Haha, "We're Beatrice" was freaky indeed.



https://www.youtube.com/watch?v=WV5Mb_zZPPs



https://www.youtube.com/watch?v=Gch72L5vJPA

Oh yeah as if it wasn't already weird enough, here came that freakin clown! As a kid I remember wondering who Beatrice was and why she was a we.

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[OhioLawyerF5]

Originally Posted by GeoPoto

I will be surprised if PSA keeps SGC going indefinitely. Surely, they are working towards merging whatever management, administration, logistics, grading, and slabbing functions aren't already merged. That would be Aquisitions 101. The tipping point will arrive when the IT department is ready to add SGC-graded cards to the registry. Operating two businesses that do essentially the same thing can't make sense. SGC-style slabs may become an option to appease tuxedo aficionados, but grading standards, customer service, and anything else users care about will become one and the same, if they haven't already.

PSA doesn't own SGC. Collectors owns PSA and SGC, two separate companies. This wasn't a merger. So "Aquisitions 101" [sic] doesn't apply. And as several have pointed out in this thread, it would make no sense for Collectors to kill one of their brands.

[Peter_Spaeth]

Originally Posted by OhioLawyerF5

PSA doesn't own SGC. Collectors owns PSA and SGC, two separate companies. This wasn't a merger. So "Aquisitions 101" [sic] doesn't apply. And as several have pointed out in this thread, it would make no sense for Collectors to kill one of their brands.

If the cost savings of consolidating the brands into the larger brand outweighs any revenue loss, then it makes sense. Since we don't know either side of the equation, who can say?

[Mark17]

Originally Posted by Peter_Spaeth

If the cost savings of consolidating the brands into the larger brand outweighs any revenue loss, then it makes sense. Since we don't know either side of the equation, who can say?

A lot of collectors are very loyal to one or the other. Higher resale prices with PSA (real or perceived,) or the "tuxedo" look of SGC. If they try to run a calculation to determine whether loyalty among SGC customers would automatically transfer to PSA, I think they'll conclude, probably not. At, least, too questionable to risk.

[Lorewalker]

Lots of interesting thoughts and points here but some are posting like they are an insider at Collectors and it is truly hilarious. Unless of course one of you is actually Nat.

[Peter_Spaeth]

Originally Posted by Mark17

A lot of collectors are very loyal to one or the other. Higher resale prices with PSA (real or perceived,) or the "tuxedo" look of SGC. If they try to run a calculation to determine whether loyalty among SGC customers would automatically transfer to PSA, I think they'll conclude, probably not. At, least, too questionable to risk.

It's a question of degree, right? I think most would reluctantly grade with PSA because there's really nowhere else to go any more. But that's just my best guess.

[OhioLawyerF5]

Originally Posted by Peter_Spaeth

If the cost savings of consolidating the brands into the larger brand outweighs any revenue loss, then it makes sense. Since we don't know either side of the equation, who can say?

While I agree none of us have insider information, I don't believe it's as simple as a cost savings/revenue loss calculation. There is more that goes into the decision than that.

[Mark17]

What we should see is a combined registry.

[GeoPoto]

Originally Posted by OhioLawyerF5

PSA doesn't own SGC. Collectors owns PSA and SGC, two separate companies. This wasn't a merger. So "Aquisitions 101" [sic] doesn't apply. And as several have pointed out in this thread, it would make no sense for Collectors to kill one of their brands.

You make a valid point. Acquisitions 101 was misplayed. In the long run, I would expect a merger. But, I would have to agree that the long term could be a long time.

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[raulus]

Originally Posted by GeoPoto

You make a valid point. Acquisitions 101 was misplayed. In the long run, I would expect a merger. But, I would have to agree that the long term could be a long time.

And maybe all of this talk will become a self-fulfilling prophecy.

A know-nothing blogger mouths off, and it injects the smallest doubt whether the brand will continue long-term, so would-be submitters send in less stuff, or at least delay sending in stuff for a few months. The monthly reports for stuff graded show that SGC grades less and less stuff each month. SGC lays off a few people, and the news gets out the SGC is laying people off. Grading times extend.

The trend snowballs, takes on a life of its own, and eventually they pull the plug. Maybe it takes a few years, but once the doubt sets in, it's hard to turn the corner.

So I guess if you love SGC, it's your obligation, nay duty, to crack all of your existing SGC stuff and re-submit it again to keep those numbers up. Or at least to find more and more raw stuff to grade each month to keep the good times rolling.

[MJRaider]

I found the Vintage YouTube community fairly interesting a year ago but man has it just become an echo chamber of the same old guys, saying the same old things, and including only the same old people.

Except Southern Collector, I like him. But he's already starting to sound like the rest of them.

But you better spend thousands of dollars on cards on a monthly basis or your collection isn't interesting and clearly you are poor.

[Vintagedeputy]

Originally Posted by raulus

So I guess if you love SGC, it's your obligation, nay duty, to crack all of your existing SGC stuff and re-submit it again to keep those numbers up.

That’s a bit ridiculous, don’t you think?

Originally Posted by raulus

Or at least to find more and more raw stuff to grade each month to keep the good times rolling.

That’s a little more reasonable.

[Snowcat]

Originally Posted by OhioLawyerF5

PSA doesn't own SGC. Collectors owns PSA and SGC, two separate companies. This wasn't a merger. So "Aquisitions 101" [sic] doesn't apply. And as several have pointed out in this thread, it would make no sense for Collectors to kill one of their brands.

^ this. Collectors is a parent company. A parent company that plans to further expand into the collectibles space through new launches and acquisitions.

Don't forget, content creators rely on engagement.

[steve B]

Originally Posted by GeoPoto

I will be surprised if PSA keeps SGC going indefinitely. Surely, they are working towards merging whatever management, administration, logistics, grading, and slabbing functions aren't already merged. That would be Aquisitions 101. The tipping point will arrive when the IT department is ready to add SGC-graded cards to the registry. Operating two businesses that do essentially the same thing can't make sense. SGC-style slabs may become an option to appease tuxedo aficionados, but grading standards, customer service, and anything else users care about will become one and the same, if they haven't already.

It makes sense and has for Most car companies.
Ford/Lincoln/Mecury
Chrysler/Plymouth/Dodge .... /Jeep/AMC
GM with many brands.

Raleigh Bicycled bought up most large British brands and used them eventually to circumvent exclusive territories
So one city might have Raleigh/Rudge/Humber/Robin Hood/and many more.

A lot of companies also sell their products to another big company labeled as another brand but they're the same product.

As long as it's profitable, I doubt SGC is going anywhere. It probably will change for the better in some ways worse in others.

I still think they're missing out by not doing team color gaskets. Or at least a couple options for some sets that might not look as good with the black gasket like 71 Topps or 1950 Drakes. (I'm sort of odd in thinking I like the SGC holder for prewar, but the PSA holder for newer cards. )

[Aquarian Sports Cards]

Originally Posted by Snowman

Collectors is still investing money into the SGC brand. They are making improvements on the backend database and hiring more graders while the vacuous halfwits on YouTube and Blowhard sound their false alarms.

Collectors will continue to keep SGC around as long as the hobby continues to demand their services. Why? Because they'd be stupid not to. They know that a significant percentage of loyal SGC customers would take their business to CGC, BVG, or MBA instead, and that could open the door for someone like Fanatics to scoop them up and start chipping away at the PSA market share. A lot of these customers grade with SGC because they don't like PSA, and them shutting down SGC isn't going to change that. Keeping SGC in play gives PSA a moat. And they can't just steal all their graders without creating a new PSA location in Florida because most of those guys aren't going to move across the country so they can grade cards in LA or New Jersey.

As long as SGC continues to thrive (and they very much are - they even had to increase their turnaround times recently because they're swamped), Collectors will keep keep them open because their added value as an alternative grading option far exceeds the value that they would get from stealing their graders and offering crossover specials.

Hard to disagree with any of this.

[edhans]

Originally Posted by Snowman

Collectors is still investing money into the SGC brand. They are making improvements on the backend database and hiring more graders while the vacuous halfwits on YouTube and Blowhard sound their false alarms.

Collectors will continue to keep SGC around as long as the hobby continues to demand their services. Why? Because they'd be stupid not to. They know that a significant percentage of loyal SGC customers would take their business to CGC, BVG, or MBA instead, and that could open the door for someone like Fanatics to scoop them up and start chipping away at the PSA market share. A lot of these customers grade with SGC because they don't like PSA, and them shutting down SGC isn't going to change that. Keeping SGC in play gives PSA a moat. And they can't just steal all their graders without creating a new PSA location in Florida because most of those guys aren't going to move across the country so they can grade cards in LA or New Jersey.

As long as SGC continues to thrive (and they very much are - they even had to increase their turnaround times recently because they're swamped), Collectors will keep keep them open because their added value as an alternative grading option far exceeds the value that they would get from stealing their graders and offering crossover specials.

Well said and I hope you're right.

[Neal]

Originally Posted by edhans

Well said and I hope you're right.

Yup
Agreed

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[raulus]

I suspect the goons who start these rumors do it primarily because of the delicious reactions they elicit.

So congrats to all of us for not feeding the trolls.