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Our host and T.V.commercials...
joeykoins
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I'm sure this has been posted before but why hasn't PCGS invest in T.V. ads? Won't this boost business? Come to think of it, there's not one grading co. that advertises, why not?
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.0
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joey,
This is just my guess, but:
First of all I think PCGS has just about all the business they can handle
Secondly, TV advertising nationally is very expensive. As far as local goes, they aren't like a local furniture store that sells almost all of their stuff in one area.
I think the large expense for any extra business they would get is simply not worth it.
JJacks
"Seu cabra da peste,
"Sou Mangueira......."
Coin grading is a small niche. CLCT (parent company of PCGS) has revenues in the $60m per year range, profits are 1/3 of that, and that includes the other divisions. As much as $60 million might seem, that's sardine size for a nation wide business. Compare CLCT to a medium-sized company such as Gap (the jeans company, symbol GPS). Gap has $60 billion in revenue, $6 billion in profits, that's about the size where buying regular TV time can make sense. 250 million people might buy a pair of jeans vs. the 5000 people that might submit a coin for grading.
<< <i>As much as collectors think the world revolves around their hobby, it is not that big, doesn't extend its reach very far. There might be 100,000 active U.S. coin collectors in the whole country. Maybe 5,000 of them, mostly big time coin dealers or auction houses, do 90% of the paid submissions. Buy TV time to target that 5k? Is there a bigger possible waste of money?
Coin grading is a small niche. CLCT (parent company of PCGS) has revenues in the $60m per year range, profits are 1/3 of that, and that includes the other divisions. As much as $60 million might seem, that's sardine size for a nation wide business. Compare CLCT to a medium-sized company such as Gap (the jeans company, symbol GPS). Gap has $60 billion in revenue, $6 billion in profits, that's about the size where buying regular TV time can make sense. 250 million people might buy a pair of jeans vs. the 5000 people that might submit a coin for grading. >>
I See. I guess Starbucks would also be that example also and the reason they too don't really advertise on T.V. that much. but think of it, PCGS should market their commercials on the family public as to giving a gift for that particular holiday something completely different! People (unknown so to be collectors) would might be interested in giving a new and exciting conversation piece to their loved one. ala, Grads,moms and dads, anniversaries,etc... Just a thought to enlighten the hobby maybe?
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.<< <i>
<< <i>As much as collectors think the world revolves around their hobby, it is not that big, doesn't extend its reach very far. There might be 100,000 active U.S. coin collectors in the whole country. Maybe 5,000 of them, mostly big time coin dealers or auction houses, do 90% of the paid submissions. Buy TV time to target that 5k? Is there a bigger possible waste of money?
Coin grading is a small niche. CLCT (parent company of PCGS) has revenues in the $60m per year range, profits are 1/3 of that, and that includes the other divisions. As much as $60 million might seem, that's sardine size for a nation wide business. Compare CLCT to a medium-sized company such as Gap (the jeans company, symbol GPS). Gap has $60 billion in revenue, $6 billion in profits, that's about the size where buying regular TV time can make sense. 250 million people might buy a pair of jeans vs. the 5000 people that might submit a coin for grading. >>
I See. I guess Starbucks would also be that example also and the reason they too don't really advertise on T.V. that much. but think of it, PCGS should market their commercials on the family public as to giving a gift for that particular holiday something completely different! People (unknown so to be collectors) would might be interested in giving a new and exciting conversation piece to their loved one. ala, Grads,moms and dads, anniversaries,etc... Just a thought to enlighten the hobby maybe?
PCGS has nothing to do with those kind of gifts. The U.S. Mint and a few dealers have more of those kinds of gift items, such as proof sets, birth year coins and sets, Christmas ornaments with coins in them, folders, albums. PCGS has little to do with gift giving. PCGS is primarily a marketing firm, that serves very wealthy dealers, seeking to add value for their wealthy clients. An ad in Barrons newspaper might make a little bit of sense. A regular TV ad, no sense at all. Might as throw the money away. 99.999% of the audience has zero interest in certifying coins, most have no idea what certification is, or is about. Just to get to square one, basic understanding of certification, would take several half hour infomercials, not a 30 second ad. Again, the main reason against TV ads, is that the coin hobby is a tiny in terms of national revenue, and smaller than a dot, in terms of numbers of collectors or potential collectors. Starbucks is fairly big, bigger than Gap jeans, but chooses to spend their marketing money in other ways.
My two cents on people that gift expensive collector coins to non-collectors, are that those gift givers are making a mistake. A lot of the time, those gift coins get cashed in at a local pawn shop for ten cents on the dollar the first time the young person needs money for a date, or a new video game. Same for collectors that build expensive sets for their heirs. Most of the time they are cashed in very quickly.
Kind regards
https://acoinshop.com/ —-> https://ebay.us/m/KxolR5
<< <i>As much as collectors think the world revolves around their hobby, it is not that big, doesn't extend its reach very far. There might be 100,000 active U.S. coin collectors in the whole country. Maybe 5,000 of them, mostly big time coin dealers or auction houses, do 90% of the paid submissions. Buy TV time to target that 5k? Is there a bigger possible waste of money?
Coin grading is a small niche. CLCT (parent company of PCGS) has revenues in the $60m per year range, profits are 1/3 of that, and that includes the other divisions. As much as $60 million might seem, that's sardine size for a nation wide business. Compare CLCT to a medium-sized company such as Gap (the jeans company, symbol GPS). Gap has $60 billion in revenue, $6 billion in profits, that's about the size where buying regular TV time can make sense. 250 million people might buy a pair of jeans vs. the 5000 people that might submit a coin for grading. >>
Good analysis. Television advertising time is expensive, commercials are expensive to produce and the size of the target audience is smaller than minute compared to that of mainstream retail.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
<< <i>A thirty second Super Bowl ad would be classic! >>
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.<< <i>
<< <i>A thirty second Super Bowl ad would be classic! >>
unlikely @ $2million a pop per 30 seconds= almost one quarterly net income. .
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.