Economics of Grading
 

Posted By: <b>Jeff Mohler</b><p>I am looking at purchasing a group of ungraded cards. I anticipate having some duplicates to sell on Ebay. The cards are probably worth 40-60 dollars per card. <br /><br />At what point to the members of Net 54 believe that it makes economic sense to pay the grading fee before selling on Ebay? I know that t206 cobbs are worthwhile, but at what point does the marginal increase in price become less than the grading fee?<br /><br />Jeff<br /><br />

Economics of Grading
 

Posted By: <b>David Smith</b><p>I have the same question except it is about 1972 Topps cards.<br /><br />One of my College Professors that I keep in contact with is seriously thinking about selling his baseball cards that he collected as a kid. He was an only child and kept EVERYTHING in REALLY nice condition. With the exception of his Detroit Tigers cards (he lived in Detroit at that time) ALL of his cards look like 8's, at least. He said that when he bought the cards, he would look at them, put them in numerical order and that was about it. No flipping, trading or putting them in the bicycle spokes for him.<br /><br />Now, he knows about grading and thinks it is a good idea for the star cards and High Numbers but what about the low number commons?? His concern is that some of his cards might be 9's or higher and that if he doesn't get them graded, then he might leave some money on the table, just in case they DO grade that high and a couple of Set Registry people need or want them.<br />On the other hand, he is also worried about spending money to get the cards graded and having them come back not as high as he/I think because of maybe a small ding to a corner, tiny surface crease or being too off centered.<br /><br />Just wanting to know,<br /><br />David<br /><br />Edited to correct typos.

Economics of Grading
 

Posted By: <b>leon</b><p>I think it's really very easy to determine. After the grading fee, of say $12.00 average, and the shipping per card of about $2-3.....you need to determine if the slab will bring more than about $15 more for the card....I usually think of about a $150 card, give or take, is the thresh hold for me...but it can be different for different cards. I also think the higher the grade the more likely I am to get something graded....Take for instance a Coupon T213-2, common....raw in gd-vg it's about $50....in a 30 slab it's about $50....in a 40 slab it's about $75-$110, so it's worth it, imo...as these get tough above a 30....and if it's a 50 then it's really a no brainer....Bottom line is if it will sell for more than the grading costs, in a slab, then that is the best way to go...Any card that will sell, graded, for under $100 probably isn't worth it, imho...<br /><br />Jeff- I just saw your question and I think the answer is "no" on 50-60 dollar cards...others may disagree...

Economics of Grading
 

Posted By: <b>Bobby Binder</b><p>You need to take a real good look at the pop reports for the common cards. Makes no difference what it is anymore if it is a low pop in a high grade it will bring high dollars. And by submitting in bulk you will get a much better rate them $12 a card.

Economics of Grading
 

Posted By: <b>barrysloate</b><p>David- I would have your friend start by sending in a few key HOFers that he feels might grade a 9. If he gets the 9 then he might want to get a whole lot more graded. But if they come back closer to 7, then he should just stick with the key cards in the set.

Economics of Grading
 

Posted By: <b>boxingcardman</b><p>And on the overall math. <br /><br />I just got a group from an auction that I purchased for resale. I paid about $12 a card. Most of the cards are worth around $15 on average, so no grades there. Five of the cards are grade-worthy and should pull decent grades (4-5-6) and sell for $50-$150 depending on which grades they get. I'll invest another $60 or so to slab the five in question. My view is that any old card worth $50 or more in slabbed vg condition is worth submitting on a special if you are into it for only 25% or so of the value graded. People simply will pay more for a nice midgrade in a major company's holder and you can reap that extra value. Of course, you have to have the eye to judge the cards so you don't end up assessing them as $50 cards when their defects really dictate a $20 price. Once you fall below the threshold of $50 or so, the numbers just don't add up.

Economics of Grading
 

Posted By: <b>Ed Hans</b><p>It shouldn't matter what you're "into" a card for. If it costs $10 (fees and shipping) to have a card graded, anything more than a $10 increment over the raw selling price is profit, even if you happen to lose money on that particular card. Personally, I don't think it makes much sense to slab mid grade (up to a 7) 50's and 60's cards or very low grade (1-3) common vintage issues (T206, 33 Goudey, etc). Very high end (8-10) cards of any vintage will almost invariably yield a return on your grading investment.The problem arises when you think you have eights and they come back sixes and sevens.