Unchartered Territory for PSA
Collector8578
Posts: 17 ✭
PSA is in a very peculiar spot right now and I hope they navigate the waters intelligently. 6-12 months ago they had a normal business operation, now they can't raise prices high enough or fast enough to keep people away. It's amazing to think they have so much business that it caused them to essentially barricade the doors shut.
Just like in any other growing industries, they need to decentralize to access new employee talent pools and clean up the logistics. The scary part here though, long term, is watching them invest millions to meet current 2021 demand and then see it fall off in the coming 3-5 years. In other words, make the same mistakes Krispy Kreme did.
I'm very interested to hear what all of you think this will look like 5 years from now. Here's my crystal ball prediction:
-PSA will remain the premier name in grading, almost solely focused on high value & low pop cards.
-One of the other current competitors will emerge as the clear #2 player in high value, while others take ownership of the lower value / high pop cards.
-A new technology is emerging now in someone's basement and will upset the grading service industry. Think Tesla type interruption
-Card manufacturers will enter the grading market themselves, as well as the create an auction marketplace to unseat E-bay.
-Card manufacturers will begin releasing low count serial numbered cards that meet exacting laser cut standards and are sealed in a tamperproof case at the factory. In other words, selling something better than PSA 10 right out of the box. No grading required.
Will be an interesting ride.
Comments
Welcome to the boards!
The company I work for, which is also the premier company in their industry, has also recently suspended sales, which is unheard of in the 33 years I've been there. And it's for the same reason, we are completely backlogged. It's a very interesting situation to be in, especially during these uncertain times.
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The future of cards is digital. It's going to happen sooner rather than later.
Future? In the present day, Registry + Vault = Digital already, for those who prefer that as an option as opposed to having their items in-hand.
Someone mentioned 6-12 months ago normal operations....... they haven't had anything normal in 6 years. These long wait times and other things have been big for awhile. I applaud them for admitting this is out of hand with no way out with business as usual approach. Stopping submissions is smart at this point. Many people are seriously unhappy with the length of time, CS being unreachable after the 1st 18 minutes of the day, etc. Very smart move.
Good point on 6 years. I guess I was referring to 6-12 months ago they had some semblance of normal operations and a company in growth mode. It's now become a tsunami of epic proportions.
I too fully agree they had to take action and have no beef with them at all. I'm just intrigued by the whole situation. Not anti-PSA by any means whatsoever. In fact, I'll be back in line when the doors open again:)
i would direct them back to the thornton melon school of business:
The actions you take when you business is on top are a portent of whether you remain on top. The better the competition the better it will be for collectors.
It's the singer not the song - Peter Townshend (1972)