Should a TPG run its own auctions?
 

I received an email from Beckett advertising their auction, then I found Rich's thread. I'm just wondering what the board thinks about this.

I would say that a TPG should not be selling their own stuff, BUT Beckett grading isn't selling their own stuff. Beckett auctions is selling other people's stuff based off consignments. The auction is not just BGS graded cards, it has a lot of raw stuff and in quick look I even saw a PSA card.

I do understand how it can become a conflict of interest so for that reason I am undecided.

Straight consignments already graded would be fine. Raw ones that become Beckett graded and then get sold could be (at least) a perception issue. The higher the grade the more Beckett will get in commission. (due to higher value)

MEARS also fits into this category.

Hells no!

I don't see why not, you just need to bid the maximum you are willing to pay for a card, so who cares if the seller also graded the card and if there are a little bit of shilling too.

Beckett should totally do this.

Rob A.desso

I think the concern is the grading TPG will grade the cards higher than what they present. Yes, buy the card not the grade, but with an online auction and not having in your hands you have to rely on the grade for some of your bidding.

If a TPG is selling something they themselves graded, they cease to be a TPG. At that point, they're an FPG (First Party Grader). :D

Didn't they do a great job last time they tried this? For some reason the name Stephen Strasburg comes to mind.

A really bad idea. The term "third party" would be eliminated in this case.

The problem is, no matter how ethically you conduct things in reality (keeping the departments separated, left hand doesn't know what the right hand has graded, etc), the perception will always be that there is a conflict of interest. If the possibility exists for collusion between the two sides of the business, the general assumption among cynical collectors will be that there is collusion, and it's only a matter of time until someone finds an auction listing that seems to back up their assumption, even if in reality there was no actual collusion.

TPG's in particular, much more than dealers, auction houses, or other industry participants, live and die by their reputation and general perception of their competence and impartiality. To risk that perception by playing both sides of the fence seems to me to be a risky endeavor that could result in failure in both areas.

Terrible idea. I would never trust any item in their auction that they slabbed/authenticated themselves. MEARS has a huge conflict of interest in my book.
JimB

Gamebits, you'll be happy to know I got your joke and thought it was funny. I suspect most who read a recent lengthy thread got it too.

MEARS said they added auctions because they simply didn't make enough money writing LOAs. They didn't make as much as anticipated from the LOA business.

That's just what they said, don't shoot the messenger.