SGC Going Away?

[notfast]

SGC is churning out record numbers.

It makes absolutely zero sense to make them go away and there is zero chance some random YouTube content creator has any insight about something like this happening in the first place.

[Peter_Spaeth]

None of us, I assume, have any real insight into the incremental costs of running two brands within the same business in this instance, or the anticipated effect on revenues if they consolidate. Generally speaking, I think it's less rather than more common for a single company to maintain competing brands, but it happens.

[sacentaur]

When the American Tobacco company was acquiring competing producers back in the day, they opted to retain the original entities because those companies had brand loyalty attached to their names. Plus it was a good tactic to avoid the fact that they were building a monopoly, at least until 1911 when the courts ordered the monopoly broken up.

I do like the idea of retaining SGC for vintage and PSA handling the mountains of modern cards.

[sammythunder]

Originally Posted by Peter_Spaeth

None of us, I assume, have any real insight into the incremental costs of running two brands within the same business in this instance, or the anticipated effect on revenues if they consolidate.

Agreed. This is all speculation.

Generally speaking, I think it's less rather than more common for a single company to maintain competing brands, but it happens.

We see it all over in various businesses. The Auto Industry is a great example.

[Neal]

Originally Posted by Peter_Spaeth

None of us, I assume, have any real insight into the incremental costs of running two brands within the same business in this instance, or the anticipated effect on revenues if they consolidate. Generally speaking, I think it's less rather than more common for a single company to maintain competing brands, but it happens.

Some of the most successful companies own several brands. If GM decided to get rid of Buick thinking they'll now buy Chevrolet instead, they may have done so. Or maybe they considered some Buick owners may buy a Ford instead. It's easier and cheaper to keep customers rather than find new ones.

I'd love to see the youtu.be video that started this wildfire -

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[Exhibitman]

Having different brands to cover different customer bases is as American as Budweiser and Michelob. SGC has completely different holders than PSA, a loyal customer base, and significant brand recognition; no reason to piss away all of that goodwill. I do think that they will eventually integrate the back office and web sites; that is a no-brainer cost saving measure.

[Peter_Spaeth]

Originally Posted by Neal

Some of the most successful companies own several brands. If GM decided to get rid of Buick thinking they'll now buy Chevrolet instead, they may have done so. Or maybe they considered some Buick owners may buy a Ford instead. It's easier and cheaper to keep customers rather than find new ones.

I'd love to see the youtu.be video that started this wildfire -

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But there is no Ford in this case. People have nowhere else to go, really, other than PSA if SGC is discontinued. All depends on the economics, and we are not privy to those.

[Neal]

Originally Posted by Peter_Spaeth

But there is no Ford in this case. People have nowhere else to go, really, other than PSA if SGC is discontinued. All depends on the economics, and we are not privy to those.

There is a "Ford" in this case ... not submitting at all. Collectors blow up SGC and I think a good number of slabheads go with it

[perezfan]

Originally Posted by Neal

There is a "Ford" in this case ... not submitting at all. Collectors blow up SGC and I think a good number of slabheads go with it

Agree. I, for one would simply not grade my cards, since I (like so many others) refuse to utilize PSA. If Collectors is tone-deaf enough to disband SGC, there's a slight chance give CGC a try. But that possibility is remote, and I would submit about one tenth as much.

More likely I would just stick with memorabilia over cards. It's much less of a "business" and is more fun to collect anyway.

[Mark17]

Originally Posted by perezfan

Agree. I, for one would simply not grade my cards, since I (like so many others) refuse to utilize PSA. If Collectors is tone-deaf enough to disband SGC, there's a slight chance give CGC a try. But that possibility is remote, and I would submit about one tenth as much.

More likely I would just stick with memorabilia over cards. It's much less of a "business" and is more fun to collect anyway.

Then there's the question of what would happen to SGC's GU jersey grading service, headed by Dave Grob. It's the best in this field, and it would be crazy for them to throw that away. One more way the SGC brand name has stature within the hobby.

[OhioLawyerF5]

Originally Posted by Peter_Spaeth

But there is no Ford in this case. People have nowhere else to go, really, other than PSA if SGC is discontinued. All depends on the economics, and we are not privy to those.

There doesn't need to be a "Ford." Keeping a second brand gives the illusion of a Ford.

I'm not sure where you got the idea that it is unusual for a large conglomerate to not have more than one brand in the same space in their portfolio, but it's not accurate. It is extremely common. And it makes perfect sense.

It makes zero sense to get rid of SGC.