Quote:
Originally Posted by Exhibitman
PSA is a de facto monopoly and it is behaving precisely as a monopoly would be expected to behave: extract the most money from the captive consumers as it can while adding nothing to the cost, and service be damned. That is why we discourage monopolies.
PSA's new management knew precisely what it purchased--a monopoly--and understood precisely what it was going to do to goose revenues, and it wasn't chopping through the backlog. That's why the price increases dropped with no warning, why longtime preferred customers are being left out in the cold, etc. If the backlog holds up, expect further price increases.
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I understand the sentiment, but it's hardly a monopoly.
PSA trades on it's customer loyalty - not because they've swallowed up or priced out competition or had government cronies protect their market position. Their brand has achieved such great market share that it drives potential and existing buyers to continue that relationship in the belief there is monetary value in doing so.
And corresponding loss of value in exiting that relationship.
Their customers buy and trade with eachother and the beast simply feeds the beast. Others see what's happening and don't want to miss out on 30% premium that slab sticker banks.
It's not PSA's fault that it's minion following is willing to simply look past their sketchy grading history, including to this day where some of their 8's look better than their 10's.
Kind of like people buying Jeeps the last 40 years regardless of their poor quality control, poor reliability, poor interior design, below average driving characteristics, etc. Chrysler sold a cleverly marketed brand and people are extraordinarily loyal to that brand.
Having said that, I bought a 2020 Jeep Grand Cherokee and absolutely adore it.....then again current models look and feel nothing like those of previous eras.
If the vehicle breaks down I bought a Heep, knowingly, willingly, and enthusiastically. I love how it looks, how it makes me feel driving down the road, the utility it has in spades.
See, we can all make questionable decisions.
