What do you think PCGS pays for the plastic?

dan1ecu

With the cost of materials and upkeep of the equipment, what do you suppose they make from a $30 submission? The plastic must be pretty cheap if they still have enough left over for salaries, benefits, new computers every once in a while, advertising, etc. ...or the volume must be very large.

Dan

Placid

Less than $1.00 per slab.
I belive Mr. Hall said they grade about 70,000 coins a month.

dan1ecu

They've got to be making a killing.

nwcs

Interesting question. I've thought about this a little. I cannot say, but I can tell you some of the components of cost:

1. Plastic price
2. Fixed cost of making the molds (equipment)
3. Overhead of making the molds (people)
4. Storage/Inventory costs (fixed)

gmarguli

They are not making a killing according to their SEC filings.

Most submissions are probably either modern or economy. Many of those 70,000 submissions a month are probably bulk which are graded at a much lower cost.

I'd guess that the plastic slab probably costs 30¢ or so.

Placid

I based my guess on what coinworld is selling the do-it-yourself slabs for and making a profit.
They want $3.99 for 3.

truthteller

Aren't PCGS slabs made from melted CHILDREN!

TRUTH

nwcs

Actually, I thought they were the tooth fairy. After all, you can re-use that enamel...

BAJJERFAN

I would say that most people grossly overestimate how much most cxompanies really make and that very few actually make a killing. A large Corp with 50 billion in sales operating at a 10% profit margin "MAKES" 5 billion a year. "BUT" they also SPEND 45 billion.