PSA is raising fees in this economy?
JiveTalkinStu
Posts: 6
are they high?
0
JiveTalkinStu
Posts: 6
Comments
<< <i>just on bulk subs.. not that big of a deal >>
What are you nuts? Of course it's a big deal. I can tell you that a lot of dealers are really ticked off about it and I feel it will effect submissions especially in this economy. chaz
<< <i>
<< <i>just on bulk subs.. not that big of a deal >>
What are you nuts? Of course it's a big deal. I can tell you that a lot of dealers are really ticked off about it and I feel it will effect submissions especially in this economy. chaz >>
Agreed, It is greatly going to affect my Sub's. I't has been bad enough we haven't seen a decent $5 special in almost a year, now this. My subbing for the first half of next year has been cut in half, (Yes I have a business plan and know roughly at least 6-9 months ahead of time where my Holdering needs are going to be), for the most part directly due to this.
Neil
It was hard to break even before now it will be even harder.
You better hope you hit at least 1 home run per sub.
I just picked up 300 1950's cards and have to decide if it will be worth sending in.
I guess I'll choose the best 100 and see where that takes me.
Steve
<< <i>Yea I feel like this is a rather insensitive move. In this economic climate when a lot of companies are laying people off and cutting costs, they are raising prices on the ones (bulk submission by dealers) who have been their most loyal customers. It feels wrong and makes me want to give my business to BGS or GAI. >>
Excellent points. chaz
of this. Bulk dealers, that send in 1000 at a time or more get a discount, and rightly so.
Steve
I wont go into the whole post I did on another thread, but in my business, our costs the past 3 years have increased nearly 50%. Due to increased costs in oil, electricity, shipping costs, raw steel/metals, devaluation of the dollar, other utilities and the impending small business tax increases, we have seen an unprecedented rise in costs. Are the small business (or larger ones for that matter) supposed to just "eat" the costs because of the bad economy? I am sure you guys who work a 9 to 5 arent going to ask your boss to cut your wages 50% anytime soon.
Dont get me wrong, I hate the increase costs in anything, whether it be food, gas, or PSA submissions, but its easier to see their side of it being in business than being a consumer.
I'd rather have PSA raise one fee a meager $1 than see them go out of business or reduce the quality of the service they provide.
Also, for most of us, card grading is qualified as discretionary income. But if it's true that this change hurts the bulk submitters/dealers, then it's not really discretionary income for them. It's just a cost of doing business and you can't expect costs to stay flat always.
whoa.
brain melting
<< <i>Well said mtcards.
I'd rather have PSA raise one fee a meager $1 than see them go out of business or reduce the quality of the service they provide.
Also, for most of us, card grading is qualified as discretionary income. But if it's true that this change hurts the bulk submitters/dealers, then it's not really discretionary income for them. It's just a cost of doing business and you can't expect costs to stay flat always. >>
I do not expect costs to stay flat, but 40% in two years is a tremendous increase.
<< <i>im not jumping on any band wagon,but... if our economy is that bad should we be grading cards?don >>
I thought you already quit the hobby. Move on.
<< <i>I would think that bulk dealers are not going to feel this, the collector who sends in 50 to 100 per sub is the guy that will feel the brunt
of this. Bulk dealers, that send in 1000 at a time or more get a discount, and rightly so.
Steve >>
If we see a ton of $5.00 specials we will have a better gauge of the failure of the price increase.
On the whole though I agree it is bad business to raise prices especially in this environment.
<< <i>PSA may simply be testing the market with the raise in prices. It is all a game of revenue. Though submissions may go down, the question is will they go down by 20%? My guess is probably not and PSA will actually make more money as the submissions will decrease on slightly if at all.
If we see a ton of $5.00 specials we will have a better gauge of the failure of the price increase.
On the whole though I agree it is bad business to raise prices especially in this environment. >>
Thanks DrJ that's my point exactly!
Didn't they just release a post saying how well their business has been not too long ago. The argument saying that you would rather having them raise $1 than having them folded doesn't hold. The marginal $1 increase wouldn't have done much if they were having major problem, however it just adds to their bottom line.
It is exactly as DrJ has put it. This is more of an exploit - knowing they have significant market share and hobbyists wouldn't mind drop extra dollar or two. It's their sale team putting the number together to see how they can squeeze a buck or two to add their revenue. I normally don't have a problem with companies making money, I mean, we do live in a capitalistic nation. I am just saying that to do something like this (displaying corporate greed) at this particularly difficult time is truly a show of bad taste and demoralizing. You see many businesses would actually exercise sensitivity, for instance like the Boston Red Sox decided to not raise ticket prices, even the greedy OPEC thought its best to cut crude oil prices to ease the tension and restaurants all over the country promoting deals to help out. It's really not about the money, it's the message that is being sent is quite discouraging.
Austin
I guess I don't understand the uproar. It's $1. It's for just one of the many service levels offerred. It's not like they raised the price 20% across the board. If it really makes that much of a difference, wait for a $5 special.
And to your point about the insensitivity of the timing: So what if the Red Sox didn't raise prices? The fact is, the Red Sox still have the highest average ticket prices in baseball. Doesn't that make them insensitive? After all, we've been in this recession for a year already. And really, when is there ever going to be a time that is universally good for a company to raise prices?
<< <i>PSA may simply be testing the market with the raise in prices. It is all a game of revenue. Though submissions may go down, the question is will they go down by 20%? My guess is probably not and PSA will actually make more money as the submissions will decrease on slightly if at all.
If we see a ton of $5.00 specials we will have a better gauge of the failure of the price increase.
On the whole though I agree it is bad business to raise prices especially in this environment. >>
Very bad business. chaz
<< <i>Well said mtcards.
I'd rather have PSA raise one fee a meager $1 than see them go out of business or reduce the quality of the service they provide.
Also, for most of us, card grading is qualified as discretionary income. But if it's true that this change hurts the bulk submitters/dealers, then it's not really discretionary income for them. It's just a cost of doing business and you can't expect costs to stay flat always. >>
You are as insensitive as PSA. chaz
<< <i>
<< <i>PSA may simply be testing the market with the raise in prices. It is all a game of revenue. Though submissions may go down, the question is will they go down by 20%? My guess is probably not and PSA will actually make more money as the submissions will decrease on slightly if at all.
If we see a ton of $5.00 specials we will have a better gauge of the failure of the price increase.
On the whole though I agree it is bad business to raise prices especially in this environment. >>
Thanks DrJ that's my point exactly!
Didn't they just release a post saying how well their business has been not too long ago. The argument saying that you would rather having them raise $1 than having them folded doesn't hold. The marginal $1 increase wouldn't have done much if they were having major problem, however it just adds to their bottom line.
It is exactly as DrJ has put it. This is more of an exploit - knowing they have significant market share and hobbyists wouldn't mind drop extra dollar or two. It's their sale team putting the number together to see how they can squeeze a buck or two to add their revenue. I normally don't have a problem with companies making money, I mean, we do live in a capitalistic nation. I am just saying that to do something like this (displaying corporate greed) at this particularly difficult time is truly a show of bad taste and demoralizing. You see many businesses would actually exercise sensitivity, for instance like the Boston Red Sox decided to not raise ticket prices, even the greedy OPEC thought its best to cut crude oil prices to ease the tension and restaurants all over the country promoting deals to help out. It's really not about the money, it's the message that is being sent is quite discouraging.
Austin >>
Good points again but it is ALWAYS about the MONEY. chaz
<< <i>You are as insensitive as PSA. chaz >>
That's probably true.
<< <i>The post you read was referring to the coin collecting and card grading portions of this company doing well. Other parts of the parent company are losing money hand over fist.
I guess I don't understand the uproar. It's $1. It's for just one of the many service levels offerred. It's not like they raised the price 20% across the board. If it really makes that much of a difference, wait for a $5 special.
And to your point about the insensitivity of the timing: So what if the Red Sox didn't raise prices? The fact is, the Red Sox still have the highest average ticket prices in baseball. Doesn't that make them insensitive? After all, we've been in this recession for a year already. And really, when is there ever going to be a time that is universally good for a company to raise prices? >>
You don't understand the uproar?? You can't be a dealer. I submit 1500 cards a year and that's $1500 bucks a year out of my pocket not including all the crackouts for undergraded cards. chaz
I really don't see what all the uproar is about, business's raise prices it is part of life.
Didn't they just basically lower this bulk program or make it easier just last year?
Steve
<< <i>Chaz submit them all at once and maybe you can get a discount.
I really don't see what all the uproar is about, business's raise prices it is part of life.
Didn't they just basically lower this bulk program or make it easier just last year?
Steve >>
Steve- you don't understand. Not in this environment. It is rough. chaz
<< <i>Charge more for your cards then. >>
Will you pay the feebay listing fees when they just sit there and don't sell? chaz
<< <i>
<< <i>Chaz submit them all at once and maybe you can get a discount.
I really don't see what all the uproar is about, business's raise prices it is part of life.
Didn't they just basically lower this bulk program or make it easier just last year?
Steve >>
Steve- you don't understand. Not in this environment. It is rough. chaz >>
And they did lower the bulk program last year which was great. Just leave it the heck alone at 6 bucks, we could live with that for awhile. I am pretty sure PSA is doing very well so why mess with a good thing? chaz
cards per year.
Some valid points have been made on both sides of the discussion. If "collectors" like me don't submit, then this hobby
is moving in the wrong direction. I am not saying PSA will fold, but it could be the start of a disturbing trend. I like to believe that
I am the backbone of this hobby. I buy and sell PSA graded cards and do enjoy this hobby quite a bit. Hey, it is time for me to look at
BGS and other grading entities.
I am sure this is also impacting folks like 4SC and other high volumn PSA sellers.
Tom
Steve- you don't understand. Not in this environment. It is rough. chaz
Chaz then why moan about it? I'm confused, unless you are saying that the dollar difference makes all the difference?
Tom, IMO the big submitters won't even know about this.
Steve