PCGS Could Double their Bottom Line if they did this...
braddick
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I know it's been mentioned before, but seriously, PCGS could make a ton more money if they did this:
1- Double their grading staff.
2- Grade and holder problem coins. Change the insert to a light pink to designate it's a "problem" coin.
3- Graders should be allowed to place a symbol (of PCGS's choosing) to denote a superior, eye appealing coin (akin to NGC's STAR).
I believe, within six months of implimenting the above PCGS, would see their profit margins jump two fold.
1- Double their grading staff.
2- Grade and holder problem coins. Change the insert to a light pink to designate it's a "problem" coin.
3- Graders should be allowed to place a symbol (of PCGS's choosing) to denote a superior, eye appealing coin (akin to NGC's STAR).
I believe, within six months of implimenting the above PCGS, would see their profit margins jump two fold.
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problem coins..........eh, not high on my list.
double the staff, sure, but the price will go up.
1. Why double staff? I believe the same people with 10+/- % submit year round. Why hire more people when submission times are never within 3-4 weeks of the norm...if there is a norm. As a pubically traded company they do a great job keeping labor costs down.
2. Why recognize/grade problem coins when they keep costs down by sending us all Bodybags at .02c each. As a publically traded company they are keeping material costs down.
3. Why not denote exceptionals like NGC? I think the grade assigned by PCGS is enough. If I send an exceptional coin I expect it is reflected in the grade.The star assigned by NGC is both random and confusing.
Profit margins increase twofold.....not a chance. Reputation and conservative grading is priceless in this market.
Take these ideas with a grain of salt!! C.
Ken
<<<<<<<<<2- Grade and holder problem coins. Change the insert to a light pink to designate it's a "problem" coin. >>>>>>>>
If PCGS would to have a different brand name such as Coin Authentication Service (CAS) and such coins were normally body bagged they could be "slabbed" in a different type holder as "Authentic" or "Genuine" without a grade but indicating the problem with the coin. For an extra fee the cutoner may ask CAS ( the name is not that important at the moment) which is a division of PCGS, to place a non-numeric grade on the holder. What are the non-numeric grades? Circulated, uncirculated, proof and describing the problem as before.
In this area alone, PCGS could increase their business and profitability by at least 25% in my view. Also get the problem coins safely into some kind of holder.
<< <i>I believe they will eventually, and in the not too distant future, do all of these things when their #1 status starts to dissapear at a much faster rate than it is right now!
Ken >>
I agree with both Ken and Pat. The changes to be made are so obvious, they will come in time.
Camelot
No, that would just double their labor expenses with no increase in revenue. If people are willing to wait 45 days for economy service, why double your labor costs so they only have to wait 22 days?
2- Grade and holder problem coins. Change the insert to a light pink to designate it's a "problem" coin.
The problem with ANACS is whenever you hear an ANACS grade you have to wonder "Is this a Net Grade?". You don't have to do that with NGC or PCGS, and their reputation of not having problem coins in their holders would be diminished if they did grade them.
3- Graders should be allowed to place a symbol (of PCGS's choosing) to denote a superior, eye appealing coin (akin to NGC's STAR).
It would require restructuring their data base (pop reports, etc.) to add a new designation, but I think it would generate revenue with re-submissions by people looking to upgrade their coins to a STAR
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This one would make PCGS lots of money, but not for the reason that Oney was thinking....it would create "East Coast Grading Standard" versus a "West Coast Grading Standard" and would create an entire new niche for resubmissions. Now, instead of playing the crackout/resubmit/crossover game between NGC and PCGS, dealers would play the east coast off against the west coast...think of the possiblities! All of those regrade fees if you just tell the East Coasters to grade those Morgans a little more strictly than the West Coasters...Ultimately, it will degenerate into a gang war of East versus West leading undoubtedly to some poor grader named Tu Fas Gra-dur being gunned down on the strip in Vegas following a late night grading session.
<< <i>Monstavet- I think you've been watching to much MTV lately......Gangsta rap coin gangs having turf wars..... >>
all of their financial data but, the bottom line being defined as their profit
after all expenses, they wouldn't need to double their submissions in order
to do just that. Many of the their expenses are relatively fixed; advertising,
attending shows, etc, etc, etc.
1- Double their grading staff.
Adding to the staff (and streamlining processes) to improve turnaround times
AND be able to handle additional submissions would be a good thing. How many
times have you heard that coins are being sent elsewhere just because of the
waiting period.
2- Grade and holder problem coins. Change the insert to a light pink to designate
it's a "problem" coin.
I think this is a good idea as there are tons of coins out there that are still nice
and collectible, but just aren't up to the PCGS normal standards. It's more time
consuming and costs more in materials than a bodybag, but would result in increased
submissions with coins that would never be sent in currently.
The pink holder would immediately identify these slabs.
3- Graders should be allowed to place a symbol (of PCGS's choosing) to denote a
superior, eye appealing coin (akin to NGC's STAR).
I like this, too, but not for eye-appeal factor. I would rather see a +/- system
for coins that are near the top or bottom of the assigned grade level (in PCGS's
opinion). I believe dealers would like this, as it would allow them to more easily
get a premium price for PQ coins, and it might be easier to achieve that "+" grade
rather than jumping a whole grade on resubmissions. This should result in more
submissions overall either in trying to achieve the "+" or lose the "-".
Ken
Experience the World through Numismatics...it's more than you can imagine.
It can't.
David has said on numerous times there are about 2 to 3 dozen people in the world qualified to grade coins for them. Half already work for them, others work for Engeecee, one or two work for the "other services". Many others that are qualified don't want to be locked in a pit area grading a new coin every ten seconds. There's a lot of money to be made as a grader, but it's not for everyone. Do we want "almost qualified" to grade our coins. Lord knows we beetch enough now that they missed this one and blew it on that one. As long as there's a steady flow of product in the front door, there's no need to change the dynamics. For the time being, it works.
Joe
One correction though that I'm surprised no one else has observed: Doubling the grading staff would not cut the submission times only in half. It would actually cut it by approximately 75%. What is now a 40 day turnaround would be somewhere closer to 12.
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