Quote:
Originally Posted by Lordstan
Ok so now I'm confused.
What is PSA guaranteeing exactly? That all items precerted will pass?
This means
A) They are looking closely at the item prior to the auction and charging the auction house. Then, because it's "guaranteed" they don't really have to look at it when you send it in and pay more for the full cert. So they get paid twice for the same service.
B) They are giving it a cursory glance prior to auctioning and charging the auction house. Then they look at it in more detail when the buyer sends it in. Again, paid twice for the same service.
As far as the guarantee, doesn't it already work that way? If you buy something with an auction cert and it then fails full cert, the auction house will refund you for the item. So what extra are you getting by PSAs guarantee?
Lastly, of course, the buyer pays for both certifications. The exact reason may people use TPA's is the fact they believe the item will sell for more with a cert.
Choice 1...Dimaggio Mantle 8x10 without cert - $300
Choice 2...Same picture with PSA or JSA - $500-600.
The buyer is absolutely paying for the cost of the cert!
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A) They ARE looking closely at the items pre-auction. They DON'T charge the auction house very much. Maybe just enough to cover expenses. Its a good marketing play for them and the auction house. PSA knows that the auction houses wouldn't pay them for a full cert. A Mantle costs $100 to cert. Even with a dealer discount, no auction house will pay $50 or $75. PSA offers to do a pre-cert for a nominal fee, and hope that the end buyer pays for a full cert. I don't know what the sell-through is - 20%? 50%? 70%? Even at 10%, this would be very profitable for PSA.
B) Because the item is not a full LOA, the lots don't sell for that kind of premium. Here's an example, PSA cut Mantle Autos have sold on Ebay over the last 90 days for as low as $250 but on average, they go for about $300-$350. Several Mantle examples have sold at auction for a fraction of that. With buyers premium, a 4x6 postcard sold for $120, a lot of 2 8x10's sold for $448, a cut and a signed print went for $239. I didn't cherry pick auctions. This is the norm. These items were pre-certified which means they are guaranteed a PSA LOA if you pay. The benefit of an auction pre-cert to the buyer is that you can be assured of a passing TPA, get a discount on the fee, and pay non-TPA prices for items.
C) Here is the text from PSA website:
"A PSA/DNA Pre-Certified lot is one that has been reviewed by PSA/DNA autograph experts. The winning bidder of any lot that contains this special designation will be eligible for a substantial discount if they choose to submit the autographs directly to PSA/DNA. To take advantage of this special offer, the items must be submitted within 60 days of the auction close with receipt or proof of purchase from the auction house. The rate chart for Pre-Certified lots can be found on
www.psadna.com under List of Services.
This service was designed to notify potential bidders that the autographed lot in question will pass PSA/DNA if they choose to submit the item for authentication immediately following the auction. Not only will the winning bidder be eligible for a substantial discount, they will also receive all of the benefits that full authentication provides (noted above)."