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times listed under the service tab?
PTVETTER
Posts: 6,112 ✭✭✭✭✭
I notice that the turnaround times for different services change, but the question is...
on the day posted it was sat 15 days and now 29 days.
What period would you think would apply?
on the day posted it was sat 15 days and now 29 days.
What period would you think would apply?
Pat Vetter,Mercury Dime registry set,1938 Proof set registry,Pat & BJ Coins:724-325-7211
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BTW - shareholders are happy that service times are creeping back up.
Fadetoblack - so you aren't happy with service time. You aren't happy with forum down time. Maybe NGC is a better fit for you.
<< <i>BTW - shareholders are happy that service times are creeping back up. >>
Can you provide a source of proof of this supposed to be fact. Most likely they don't really track that as much as dealers do.
I'm a shareholder and I track it every day. I use it as my basis to buy, sell, or hold the stock. I know other shareholders who do as well. There are articles written about the PCGS statistics page on seekingalpha.com. Example:
seekingalpha PCGS statistics article
<< <i>Can you provide a source of proof of this supposed to be fact. Most likely they don't really track that as much as dealers do
I'm a shareholder and I track it every day. I use it as my basis to buy, sell, or hold the stock. I know other shareholders who do as well. There are articles written about the PCGS statistics page on seekingalpha.com. Example:
seekingalpha PCGS statistics article >>
Well guess I need to go out and find some more companies with declining customer service to invest in using the logic of that article.
And just a question as to what the waiting period is since it changes
some need to know to plan for shows!
I don't see where that article said that.
I can categorically tell you that you are wrong with this assertion.
<< <i>You do realize that if they could keep turnaround times to under ten days, they would probably receive many, many more coins for grading? >>
I've long held that the ideal turnaround time setup is approximately 5/15/25 for express/regular/economy.
Much faster than that, and people will opt for cheaper service levels, since they get almost-as-fast service for less money.
Any slower than that, and people will either hold off on submissions or send them to competitors.
You have to give people a reason to choose a faster, higher-margin service level by keeping wait times long, but not so long that they don't send in their coins. A few weeks ago, the timing was something like 4/11/16. I suspect PCGS lost some revenue, as the economy wait time was almost as short as the typical regular submission time.
I suspect PCGS tries to manage the wait times fairly close to the 5/15/25 numbers, in order to keep customers choosing faster, higher-margin service levels.
As an investor, for the reasons stated above, I expect maximum margins occur near the 5/15/25 timing.
Much faster than that, and people will opt for cheaper service levels, since they get almost-as-fast service for less money.
Any slower than that, and people will either hold off on submissions or send them to competitors.
You have to give people a reason to choose a faster, higher-margin service level by keeping wait times long, but not so long that they don't send in their coins. A few weeks ago, the timing was something like 4/11/16. I suspect PCGS lost some revenue, as the economy wait time was almost as short as the typical regular submission time.
I suspect PCGS tries to manage the wait times fairly close to the 5/15/25 numbers, in order to keep customers choosing faster, higher-margin service levels.
As an investor, for the reasons stated above, I expect maximum margins occur near the 5/15/25 timing.
Could not have said it any better. I would add you also want to give them reason to do show submittals as well (highest margin of all submittals).
On a side note, when the wait times were low a few weeks back, that coincided with the end of the past quarter. It looks like they were running all out the end of last quarter to push everything out the door. Hence the 4 day weekend during July 4 to give everyone some much needed time off. It looks like they have also had limited weekend grading hours so far this quarter. Everyone worked hard last quarter and needs some down time. I say they deserve it and if that means the forums go down, then no big deal.
I have to disagree on the reasoning on economy turn around times. With a $300 limit on coin value, you are only going to send common coins for that service anyway. No one in their right mind should send a common Morgan (for instance) that might get 64 or even 65, and spend the express service level.
So, if they made economy service fast, and "enforced" the $300 limit better, more coins that would not be submitted, might be submitted. Right now, ICG is getting a bunch of these lower valued coins because of quick turn around. PCGS could tap that market by simply speeding up the economy service.
When people go to sell those coins, they will get the same price as if those coins were raw.
FYI - the avg coin certified by PCGS last quarter was valued at $881. That includes all the bulk Silver Eagles. Lower value coins have lower value margins.
Then I guess you just don't understand what PCGS is trying to be. They are not trying to be Wal-Mart
<< <i>Right now, ICG is getting a bunch of these lower valued coins because of quick turn around. PCGS could tap that market by simply speeding up the economy service.
When people go to sell those coins, they will get the same price as if those coins were raw.
FYI - the avg coin certified by PCGS last quarter was valued at $881. That includes all the bulk Silver Eagles. Lower value coins have lower value margins. >>
$881.00 was the average? As I look at the shared orders page I would certainly question this. Where is that info from?
The last 10Q
10Q
pg 19
Coins graded: 569,400
declared value of coins graded: $501,904,000
Keep in mind half their volume is Modern Coins submitted under bulk.
<< <i>When people go to sell those coins, they will get the same price as if those coins were raw. >>
This is just a completely foolish slanderous statement. I have sold many ICG coins for more than raw. I have had many grade at or upgrade when cracked and sent to PCGS. In the Greysheet, ICG coins sell for more than Anacs. They trade about 16% lower than PCGS. That is a far cry from "at raw" pricing.
<< <i>
Coins graded: 569,400
declared value of coins graded: $501,904,000
>>
Declared value and actual value are far different. Still seems high if that includes moderns.
I would think people would declare a lower value to save on insurance and grading fees.
Seth Chandler (a poster here. can't remember his handle) asked why the value of coins was so high last quarter on their conference call. I thought it was a good question considering he is not a stock analyst
Question-and-Answer Session
Operator
(Operator Instructions) And our first question comes from the line of (Seth Chandler).
Unidentified Analyst
I just got the email and obviously you just released the 10-Q, but one thing that caught my eye that I thought was interesting is your declared value for this quarter was $501 million versus the similar quarter of last year was $328 million. I mean, that's a staggered increase in the value of coin that had come through. I am not a math genius, but it looks likes it's around plus 60% and just looking through the previous 10-Qs going back a few years, that's a lot of deviation. Do you have any reason for that? Why there was so much value coming through the first quarter?
Joseph Wallace - Chief Financial Officer
Well, we introduced some new services in the quarter which profit some of the higher value coins that come through our system. Also it just really gets back to the mix of coins in the quarter we had activity more at our trade shows as well. So both, those factors combined to make the numbers look a little bit higher at this quarter versus comparable quarter last year.
Unidentified Analyst
So you get a lot of higher valued coins. I see that your coin show submission revenue was up 77%. Do you tend to believe that high valued coins get submitted at shows?
Joseph Wallace - Chief Financial Officer
Yes they do. And it's an encouraging trend actually.