An Anlysis and a random thought

Rich Klein · #1 09-02-2009, 07:14 AM

Of the top 10 viewed threads; I found this very interesting as, although random, and based on only a few months of history; shows what the interests of this board are.

And the results:

5 of the top 10 are about the hobby "dark side"

3 of those 4 relate to Mastro/Legendary/Silk Road and issues they have had (and may continue to have)

1 was about Kevin Saucier/Scott Elkins and a whole bunch of yapping.

1 was from Mr. Dan Markel about cards which a Scott Susor may have micro-trimmed. We learned from that thread that even a link to a thread mentioning his name on the PSA boards results in an istant "poof"

4 of the top 10 belong to "Pick-Up" threads. And since this board is not a meet market; that shows just how fascinated we are with what we acquire and that others are interested in what gets traded over a month.

and rounding out the top 10; a thread about how we would improve the National Convention.

What does this mean? I'm not sure. And the latest Marshall thread is now just outside the top 10 (situated at position #12 and needs to climb two more notches to make the top 10). Late Breaking News: Due to locking of thread; the top 10 will remain the same until the next exciting event in Net 54.

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Random Thought time:

The issue about Legendary charging their consigners to get cards graded is an interesting one. The question becomes; and I suppose without looking at their books none of us knows this answer is,...

Is Doug and company actually passing on actual grading costs (and does all that grading need to be done) or are they treating the grading costs as a profit center.

You realize that many of us would say something like "Heck; if I could get cards graded for $5 under a special deal that most customers would have to pay a minimum of $8, why should I not take advantage of that for my bottom line."

I think this is a grayer area than we realize in terms of running an auction house and I'd be interested in everyone's opinion as to whether making a profit on graded cards is OK or if the auction house should just absorb a cost; which could be considerable (for example, think about how many of the Lionel Carter cards were graded and now that they are in holders; how much better the provenance is)

Regards
Rich

Note -- Matt's idea is fine as well, but I still want to hear all the sides in this.

Matt · #2 09-02-2009, 07:18 AM

Quote:

Originally Posted by Rich Klein

whether making a profit on graded cards is OK or if the auction house should just absorb a cost; which could be considerable

There is the middle ground - the auction house just passes on the actual charges (maybe a copy of the bill from the TPG) to the consignor. Even with that, I'd expect the house to be responsible and and not send in cards for same day service that don't need it; since even though that would be more convenient for the house it would cost the consignor quite a bit more.

timzcardz · #3 09-02-2009, 11:52 AM

Although an interesting analysis, the specifics of the results appears flawed by the mechanics of the transition to the new board from the old, wherein the views does not properly carry over.

Sorting by "Replies" yields similar characteristics in the results, although differing threads, meaning that some of the more recent uproars are not as significant.

Although the darker side of the hobby still dominates.

That's just human nature. What makes the front of the newspaper everyday? The good? Or the bad?

Matt · #4 09-02-2009, 11:56 AM

Tim - he was only considering threads started since we transitioned to the new board.

Peter_Spaeth · #5 09-02-2009, 12:36 PM

I believe only one person here has complained about grading by auction houses -- I suspect that in the scheme of things this is a minor issue, particularly where in most cases I imagine it increases the sale price of the cards. I doubt it is used as a profit center (that is, charging the consignor more than it cost the auction house).

Matt · #6 09-02-2009, 12:41 PM

Quote:

Originally Posted by Peter_Spaeth

I believe only one person here has complained about grading by auction houses -- I suspect that in the scheme of things this is a minor issue, particularly where in most cases I imagine it increases the sale price of the cards. I doubt it is used as a profit center (that is, charging the consignor more than it cost the auction house).

I think we've had two complaints - one a $1k bill and the other a $40k bill; nice round numbers.

egbeachley · #7 09-02-2009, 02:10 PM

If it's a profit center, then cards may be graded unnecessarily.

Jim VB · #8 09-02-2009, 02:35 PM

A recent post on the non-sports board stated that the standard Legendary consignment contract calls for grading fees to be assessed at a rate of $8.00 per card. That consignor of non-sports cards was "surprised" by a $40,000 charge.

I know from talking to other collectors that some have been able to negotiate bulk prices from PSA, in the neighborhood of $5.00 per card. (Legendary has to be using PSA exclusively, right? They couldn't be sending stuff to SGC, could they?)

At first glance, this looks like another potential profit center, but Legendary does have some costs involved in handling, processing and shipping, so it doesn't seem too outrageous to me.

I think the big surprise is that many grew to expect that Mastro used to eat these fees. Apparently, Legendary is passing them along. It sounds harsh after the fact, but people should read these contracts upfront, or not bitch about it after.

There are still plenty of real issues to complain about with ~~Mastro~~, er, Legendary. Lets's focus on those.

Rich Klein · #9 09-02-2009, 04:43 PM

And there is nothing negative intended here to Legendary/Mastro/Silk Road intended. Rather; I actually wonder if that is way auctions houses "should go"; whether auction houses should make that a profit center (if even it is small); and whether auction houses can make profits in other ways (Just think is Mastro had sold their old shipping tape they used)

I think it is currently standard for most auction houses to "eat" grading charges; but is that really the best business policy. Remember; most auction houses are now only making money on pre-graded cards from the buyer as in most cases the seller is selling the card without a commission.

I don't know the answer to this question -- but I'm curious as to "profit center" or break even -- and did every card that was sent in "HAVE" to be graded.

And I guarantee you; if we have had two people mention those grading fees; I would wager there have been others. Another question would be, if you had to send a "bat" or "uniform" to a grading service. Again; does the auction house have to eat those charges.

I'll give you an example -- and I'd love to hear responses from those who might sell this item (and yes, this is self serving).

I have a NJ Generals (USFL team) Jacket which was issued to Maurice Carthon and signed by him. I bought the Jacket in the 1980's from a friend of mine who supposedly bought out the Generals of their jackets and my Beckett buddy Theo Chen got me the autograph sometime around 1996. Now; if I gave that item to an auction house; should THEY have to pay for both authentications or should I pay for that as part of their services. Or is there a middle ground. Again; I DO NOT know the answer; but I consider that an interesting question for the experts.

Regards
Rich