SGC has been very open about the fact that their principals and employees can submit their own. People just don't seem to care, as long as those turnaround times are solid.
|
So, if my SGC slabs are going to collapse 50% in value due to this merger/avoidance of SGC panic (OMG!!!), aren't my PSA slabs gonna appreciate by 50% (gotta have PSA ONLY!!) and thus the whole thing is much to do about nothing wash?!?!?!? LOL
|
Fantastic Jeff
Quote:
Spot on. I would like to say that if Dave F was running the Peace Coepa I do think he would de a great job. |
Quote:
My point was not if it is good to have a guy with Dave's rep owning a grading company but might not be had having someone who has Dave's rep as a grader. |
First official announcement...oy...
www.gosgc.com/SGC-Joins-Collectors https://www.facebook.com/sgcgrading/ From Peter S. |
Doesn’t Dave grade Cards because he’s one of the best vintage graders out there I mean I thought it was him Scott and Derek that was the best that SGC had or still have the only one that’s gone is Derek I believe
|
Quote:
|
It’s actually a positive thing. In case you haven’t noticed the success rate on crossovers these days is very low. Once they discontinue the holder, which they most certainly do to reduce costs and duplication, you’ll have to either spend a lot of money to crossover and get most probably reduced grades or stop upgrading the set. This will save all of us money. The average Joe will figure this out soon. God forbid your holder gets cracked, scratched, damaged. My SGC sets will probably be frozen in time.
All newly sets or partially graded set will go to PSA. I started this migration 10+ years ago. Also, CSG should buy the rights to the old SGC holder, but make it tamper-proof. I’m really hoping that they will finally allow a mixed grading company registry set, like they do with coins. Sent from my iPhone using Tapatalk |
Quote:
Is PSA going forward not going to Cross at Same Grade as SGC Slabs ? If they’re buying the company aren’t they responsible too? |
Quote:
I cannot envision a scenario where Collectors runs SGC unchanged. Call me foolish. The two companies only have one thing in common in their business model--they authenticate collectibles. Their approach to business could not be any different so if Collector's management loves the SGC model so much then why not change to be more like them? |
Wow. That's disappointing news. Better get those SGC submissions in while we can.
|
Quote:
|
Quote:
They have different standards and they haven’t in the past when they were competitors. The best thing they could do to keep the people happy is have a mixed registry, not that everyone registers their cards today. Sent from my iPhone using Tapatalk |
Quote:
Many car manufacturers produce and sell competing brands. Car rental companies own competing brands. Heck, REA just bought Huggins. It makes no sense to buy a company only to shut it down. My gut is there are synergies/efficiencies they can realize operating both companies, reducing expenses and maximizing production and efficiency. It makes a ton of sense to acquire a competitor to run it as a separate division. It makes no sense to pay good money for a small, relatively non-competitor only to kill it/shut it down. Peter, I respect your legal conclusions much more than your financial opinions! |
Quote:
|
Wow, beautifully done sketch!
|
Quote:
|
Quote:
|
Quote:
|
Quote:
All I am saying is that there is brand recognition with SGC and they have a following. If PSA eliminates them, then they pick up some of that following and they likely lose some of that following. If they keep SGC (mostly) as is, they retain likely 100% of the following and potentially create additional business for either PSA, SGC or both. This should be a 1+1 =3 situation. Both companies are in the same business. Figure a way to streamline and merge processes, back office, overhead, etc. and increase the profits of both companies; and yes, maybe a little cornering of the market too. Troy is a genius because he agreed with my earlier statement :) : "While I don’t love this, my gut is it will somehow all work in the end. It usually does. Nothing I can do about it and I will still be collecting cards, so it will be what it be." |
Quote:
|
Quote:
|
Quote:
|
Having been bought and merged before more than likely back office procedures will be combined with some superficial public changes. May help avoid any antitrust issues.
A likely synergy would be to put the tux and flip into a PSA slab gaining some cost savings on slab purchases… Sent from my iPhone using Tapatalk |
Quote:
|
Competing businesses benefit the consumer. Although there are potentially some positives, this is a net loss for consumers. Those cheering this deal need to take an Econ 101 course.
|
I have 2 subs for SGC queued up and was going to complete the sub and mail out on Saturday, but now with thus news not sure what to do.
I did find it a bit comical that Peter seemed to praise collectors in his video, but in the past all but criticized the "other guys" when promoting SGC...I guess keeping your job will have that affect. AB InBev, is similar in nature. They purchased Miller Coors a few years ago and both still exist aa separate companies albeit with caveats. |
Quote:
|
Interesting video at post 137 (I am sorry but I do not know how to just post the video, maybe someone smarter can do that). I don’t know who this guy is or who his “sources” are, but it’s an interesting take.
https://www.blowoutforums.com/showth...1581626&page=6 |
Quote:
Ryan on something like that the You Tube at the bottom will bring up the video on their site. |
Quote:
|
Thanks Peter! It’s a good video. I am glad it’s now more accessible.
|
Quote:
|
I’m surprised PSA never considered making a black slab add on option since a big selling point for SGC was the great look of their black “tux” slab.
All PSA had to do was make their current slab available in also a black color instead of clear and maybe make it cost an extra $2-5. Easy extra revenue. |
Quote:
|
I'm disappointed. Just very disappointed. But I just decided that if I win the lottery, it would be fun to create a new grading company! Come on, Powerball numbers!
|
SGC acquisition
Lets see...SGC used to have a contact telephone, maybe now they will implement a new one for contact, have not submitted since they dropped that
|
Has Nat Turner said or has anyone asked him what the long term plans are with the purchase? He’s always seemed pretty open on social media sites and if I remember correctly is a member here.
|
I'm not saying beer is analagous to card grading, but I'm hoping that this is sort of like InBev or one of the big guys buying a craft brewery and not changing the recipes (diluting them with corn or rice instead of barley, etc.)
If it is true that Collectors tried to buy SGC multiple times in the past, but failed, I wonder what, if anything, changed this time? Was it just more money? Was it that Peter sees the writing on the wall and that card grading (like beer) may have topped out and selling in the future would not be as profitable? Or could it be that SGC got better terms? For instance, a guarantee that SGC could continue on without much interference, or that it would even get an infusion in cash to make improvements? This is probably just wishful thinking on my behalf, but everyone can dream. |
Quote:
|
The terms of Collectors' purchase would tell us a lot, but unlikely that much will be disclosed publicly given that both the buyer and the target are private companies with private shareholders.
I would think that PSA is really "buying" SGC's loyal customer base. It wouldn't surprise me if PSA saw data in their due diligence that suggests that SGC devotees are unlikely to submit to PSA as a general matter. As such, if the deal is announced and SGC customers flee en masse to PSA, PSA probably wouldn't care so much. But if they hate PSA and flee to CGC or Beckett, PSA would look like a muppet. So, I wouldn't be surprised if there are conditions in the deal that link the price that the SGC shareholders ultimately receive to the financial performance of the SGC unit over a certain time period -- maybe 1 year. If this is the case, I wouldn't be surprised if you saw over-grading at SGC during this 1-year period. |
I would think Collectors is going to go public. Gaining more market share, revenues/employees/locations in a similar market. Yes they will have some redundancy in certain spots, but the added value is easier multiplied under their platform in certain areas (as communicated).
I do think added locations and skilled employees really matters here. I am sure some of us are in the current business world finding new eager employees committed to learn is much harder these days specifically with a unique skill set of reviewing cards. Our by far biggest turnover is 20-25 year olds. Is it a combination of new mindset about your job, COVID, work from home etc. I know with my business we are constantly looking to acquire a small business to add to our platform. It usually is a winner for both sides. Back to this topic I will wait to pass judgment, but these guys are all smart I have to think they will use the metrics and make smart decisions to enhance the platform and hopefully satisfy the end user. |
It would be great is PSA set up additional operations capacity at SGC HQ in FL to cut down 4 days of round trip travel time for those submitting to PSA from the East Coast. This would improve UX and also take some burden off the CA operation.
I also wonder what the electricity cost is to run grading slab machines in FL vs CA. If significantly less expensive in FL, with PSAs crushing volume, they could save a lot of money by operating in FL with SGCs existing infrastructure. |
Quote:
It would be ridiculous. Not a chance they will crossover. Maybe offer a discount. Psa MAY slab....the sgc slab. You heard it here first |
Quote:
|
Yes, they can opt for psa to slab....the slab!
Sent from my SM-S918U using Tapatalk |
Personally speaking, even if PSA offered a cross and guaranteed the grade, I would not waste my money to cross over. SGC has been and still is a reputable company. I guess some folks may see SGC slabbed cards as less desirable, but that does not bother me.
|
I don't really see anything good coming from this.
The only way I see it working long term is a situation similar to packs, where PSA sends all the vintage and things they don't grade to SGC for the number. And SGC sends modern to PSA for a number. Then back for slabbing. That seems like too much handling, but it seems to work for packs. I've seen an acquisition go bad from the customer side. Used to use CVS, but they were not great and very arrogant. Went to Target which was much better. They got turned into CVS, and went from nice and helpful to *you arrogant in under a month. No change in the staff either. The claim that PSA will bring "technical expertise" to make SGC better is a joke. |
Quote:
|
I would assume that PSA looked at SGC's #s, and felt that they were on track to take a larger % of the market. Financially, it would make sense then to buy out SGC and close them down, if the cost of doing so was less than the market share loss they were projecting.
|
All times are GMT -6. The time now is 02:28 AM. |