You've been given the task of starting the "perfect" grading company - what would you do t
coinguy1
Posts: 13,484 ✭✭✭
These are serious questions, not meant to be critical of any grading companies, their supporters or their critics. And, in case anyone is wondering or thinking it, I am NOT planning on starting a new grading company - I would NOT want the headaches! 
Just a few (ok, more than a few) questions to get his thread off the ground...(Edited to add: Please feel free to answer as few or as many as you care to).
1) Would you limit the number of coins to be graded on a daily basis? If so, to what extent?
2) How many graders would be required to examine each coin?
3) Would the type/value of coin affect your requirements for #2 above?
4) Would you allow submitters to have ANY contact with graders, whether it was to ask questions or make comments about grading? If so, under what circumstances?
5) Would you offer population/census reports? If so, how would you try to maintain their accuracy and how often would you publish them?
6) How much would you pay your graders, as a maximum?
7) Would you offer volume discounts for large submitters?
8) Would you add any new designations not currently being recognized? If so, which?
9) Would you do away with any designations currently in use? If so, which?
10) Would you offer coin show grading?
11) Would you accept "minimum grade" bulk submissions, for which coins would only get holdered if they met a pre-determined minimum grade and for which the ones that didn't make the minimum grade were billed nothing (or less than the regular grading fee)?
12) How would you go about trying to promote (the advantages of) your grading company?
13) What portion of your revenues would you allocate for buy-backs, down-grades, etc. under your guarantees?
14) Would you offer any incentives to dealers in order to get them to make markets (and increase liquidity) in coins certified by your company?
15) Which coins, if any, would you refuse to grade, as a matter of policy?
16) Who would you try to hire?
Please, let's have some interesting discussion, debate and fun, but no fighting/flaming, even if/when others inevitably disagree!
Just a few (ok, more than a few) questions to get his thread off the ground...(Edited to add: Please feel free to answer as few or as many as you care to).
1) Would you limit the number of coins to be graded on a daily basis? If so, to what extent?
2) How many graders would be required to examine each coin?
3) Would the type/value of coin affect your requirements for #2 above?
4) Would you allow submitters to have ANY contact with graders, whether it was to ask questions or make comments about grading? If so, under what circumstances?
5) Would you offer population/census reports? If so, how would you try to maintain their accuracy and how often would you publish them?
6) How much would you pay your graders, as a maximum?
7) Would you offer volume discounts for large submitters?
8) Would you add any new designations not currently being recognized? If so, which?
9) Would you do away with any designations currently in use? If so, which?
10) Would you offer coin show grading?
11) Would you accept "minimum grade" bulk submissions, for which coins would only get holdered if they met a pre-determined minimum grade and for which the ones that didn't make the minimum grade were billed nothing (or less than the regular grading fee)?
12) How would you go about trying to promote (the advantages of) your grading company?
13) What portion of your revenues would you allocate for buy-backs, down-grades, etc. under your guarantees?
14) Would you offer any incentives to dealers in order to get them to make markets (and increase liquidity) in coins certified by your company?
15) Which coins, if any, would you refuse to grade, as a matter of policy?
16) Who would you try to hire?
Please, let's have some interesting discussion, debate and fun, but no fighting/flaming, even if/when others inevitably disagree!
0
Comments
As a general approach, though, I'd try to affiliate with the ANA and rely on their criteria as much as possible. For refinement of grading criteria, I'd rely on a consultation Board appointed by ANA for that purpose. I'd publish the detailed criteria for the grading in each series, and would issue revisions and refinements in a regular section in Numismatist. I'd submit unique grading problems that arise to the Board to refine standards, not to verify grades.
I would provide some designation, to specify that the nebulous but important criterion of "eye appeal"was the factor in assigning a higher grade to a coin of lesser technical merit, and I'd make clear that such an assignment is a policy of the company (much like ANACS specifies net grading). I would have in place random QA verification of the proper application of the technical standards, and I would have an appeals process available with regard to the technical grading.
Here's a warning parable for coin collectors...
Is it hidden? Do I need a set of x-ray glasses to see it?
Or maybe, just maybe, Mark makes informational posts?
nah!
rainbowroosie April 1, 2003
Most of the question you ask are beyond my scope of knowledge to answer.
1. I don't know how many coins a competent grader can grade in one day.
2. I'd have 3 graders look at each coin minimum. 2 graders, at least, for modern issues.
3. Yes, certain types might need a specialist's opinion.
4. I'd let the graders talk to submitters online in a public environment.
5. Yes, I'd have pop reports and maintain the accuracy as well as income and common sense would allow.
6. Salary would have to be competitive. I don't know the going rate.
7. Yes, I would give volume discounts.
8. Don't know enought to say.
9. See #8
10. Coin show grading if work load permits.
11. Yes
12. Throught the media and coin shows.
13. See #8
14. Maybe
15. I'd do like ANACS and net grade problem coins.
16. I'd try and hire you, MS68, njcoincrank. Wondercoin and Russ for moderns. Plus a couple PCGS, Anacs, and NGC graders I've met.
We'll use our hands and hearts and if we must we'll use our heads.
Nope, turnover is the most important factor. I'd want it to be quality driven but no need to place artificial constraints on the process.
>2) How many graders would be required to examine each coin?
I'd still go with three and a variation on the consensus model. I'd go ahead and average the three grades and the average grade would be the one assigned unless the spread of grades is greater than 1 in which case the coin would need to be discussed in greater detail.
>3) Would the type/value of coin affect your requirements for #2 above?
No
>4) Would you allow submitters to have ANY contact with graders, whether it was to ask questions or make comments about grading? If so, under what circumstances?
Yes, but only at coin shows as a marketing tool because when they aren't grading, they aren't making money. But there is value in their mingling with the market and understanding the concerns and questions of the market they serve.
>5) Would you offer population/census reports? If so, how would you try to maintain their accuracy and how often would you publish them?
It would be an incidental feature due to the certification process. It would be there but need to have some disclaimers. I'd also try to work with the other services to see if we could offer a super-census of sorts covering the other services.
>6) How much would you pay your graders, as a maximum?
I have no idea but in order to have the best you have to pay above the best.
>7) Would you offer volume discounts for large submitters?
Absolutely
>8) Would you add any new designations not currently being recognized? If so, which?
Probably not. I'd do an approach that's a mix of PCGS and NGC. But if I did, I would add a "well struck" designation.
>9) Would you do away with any designations currently in use? If so, which?
Probably not.
>10) Would you offer coin show grading?
Of course, go where the money is.
>11) Would you accept "minimum grade" bulk submissions, for which coins would only get holdered if they met a pre-determined minimum grade and for which the ones that didn't make the minimum grade were billed nothing (or less than the regular grading fee)?
I'd be open to it. But there would need to be a minimum amount of business brought in by that person to qualify.
>12) How would you go about trying to promote (the advantages of) your grading company?
23 year old beautiful swimsuit models would work the booth at coin shows. I'd also make very effective use of the internet.
>13) What portion of your revenues would you allocate for buy-backs, down-grades, etc. under your guarantees?
At first, a great deal. Then adjust as claims come in.
>14) Would you offer any incentives to dealers in order to get them to make markets (and increase liquidity) in coins certified by your company?
Of course.
>15) Which coins, if any, would you refuse to grade, as a matter of policy?
Well, I would say counterfeits but they aren't coins anyway. I would grade all legal tender coinage with proper notation.
>16) Who would you try to hire?
Only the best.
Just like you are only allowed to post one coin per thread, you're only allowed to ask one question per thread, too
If I were starting a grading co., I'd:
1. grade to ANA standards
2. technical grade, not market grade
3. not sell coins, too, to avoid any thoughts of conflict of interest
4. use laser inscribing technology similar to diamonds so any graded coins can be tracked, even if cracked out
I'd allocate as much of my profit as nescessary to stick to my guarantees (All coins guaranteed genuine, Mint State coins graded to within 1 point, circulated coins exact, any counterfeits or grading errors happily bought back). Dealer incentives would include $4 per coin grading and an option to customize slabs with their name on the back. I'd only grade non-colonial US Coins to reduce the number of experts nesscesary. As far as hiring goes, I'd try to get ex-dealers who were highly respected. The slab would be standard size and would be clear. Problem coins would be graded and a "Red Label" such as PCI uses would be added. No net grading would take place. All circulated, mint state and proof grading is by ANA standards. So my question is - Would you trust your coins to C.O.I.N.S.?
and it sets us apart from practitioners and consultants. Gregor
Question for the IHC collectors - does the use of Rick Snow's "photoseal" increase the marketability or desirability of those IHCs which pass the "eagle eye"? If Snow went into the grading biz doing IHCs exclusively, how accepted would his product be?