Who makes more with crack outs and resubmissions - the TPGs or the submitters?
au58
Posts: 1,288 ✭✭✭
Nearly everything heard regarding crack outs, crossovers, and resubmissions has to do with success stories.
What about the failures? On the whole, is more revenue flowing to the TPGs than equity being infused into the coin market?
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TPGs make more in the aggregate.
What is now proved was once only imagined. - William Blake
Better question is...who loses the most?
On a recent ANACS to PCGS crossover of a 16d Mercury dimes I lost 5 points (20 down to 15), exactly as I expected, and I still made money. I couldn't sell it as a 20 (or even for 15 money) in the ANACS plastic but everyone wanted it as a 15 in a PCGS slab. So, to answer your question, I made money and so did the TPG but I made a lot more than they did.
I suspect the submitters get the bulk of the revenue related to crackouts and resubmissions, otherwise why do in the first place.
I don’t know but I can tell you who has less risk.
Tom
I like the Business Model of TPG services. Very few businesses survive where you get rewarded for making mistakes (coins get resubmitted again and again if they leave the grading room with too low a grade for that particular coin).
Most people who have been in the business for years and play the crackout game, are usually ahead. The best graders are "right" 75% of the time, so in general, 25% of the coins that leave the grading service's offices are a little overgraded or a little undergraded. Therein lies the opportunity.
Any answer will be a guess.... one would need far more information to even pose a reasonable estimate. Included would have to be totals for submissions, downgrades, cross and upgrades....Then one would need details of coin types, varieties, conditions/grades. Without that information, guesstimates are really from one's own experiences and could not possibly represent the vast field being discussed. Cheers, RickO
I’m a loser. That’s okay. It makes somebody a winner.
``https://ebay.us/m/KxolR5
I think because they even offer the service should tell you something...
WS
The TPGs always win - in aggregate.
Where they really win, however, is registry sets. Otherwise, who would be sending in all those 1980s Lincoln cents hoping for a winner?