Why are we charged % FMV?

[mikeyboy9000]

Why is it that we are charged a % of FMV when comics reach $1k+ yet coins and notes have a fixed cost at $600? Anyone?

 

I noticed this when looking at the cgc accounts which stops at prmemium? while coins/notes go to super premium.

[Flaming_Telepath]

Because that's the way they have structured their charging system to make the business model work and keep them afloat?

 

If they didn't have the FMV over the $1000, they'd simply have to increase the cost of basic slabbing, surely?

[homerwannabee]

Because they want to redistribute comic book wealth.

[Ares]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

[VintageComics]

Because that's the way they have structured their charging system to make the business model work and keep them afloat?

 

If they didn't have the FMV over the $1000, they'd simply have to increase the cost of basic slabbing, surely?

 

I also believe that they do a much greater volume with coins and notes so they can charge less for those.

 

Comics are just a little drop in the bucket compared to coins.

 

R.

 

 

[VintageComics]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

Yeah but if everyone else is, why shouldn't they?

 

You also have to factor in insurance costs and handling/storing 6 figure books compared to 2 figure moderns.

 

[RedFury]

I believe it has something to do with insurance cost.

 

Still, charging a percentage of FMV makes it difficult to defend their position that they are independent, impartial, third-party graders. If the fee being charged is related to the FMV of the book, and the FMV is determined by the grade, then impartiality is surely compromised.

[VintageComics]

Well, I could be wrong but all the grader knows is that there is a comic in front of him and there is a bar code associated with it so I'm pretty sure there is no influence in either direction for most books.

 

They generally don't know who owns the book, which tier it was sent under or anything else.

 

If it's a bigger book I believe the grading fee is capped at $1000 (I think that's what greggy said) so whether an AF #15 comes back as a 9.2/9.4/9.6 it does not affect the final fee that it costs to grade the book.

 

Sure you could argue that in that 2.5% range under $1000 there is some room for movement but do you actually think a grader back logged with 1000's of comics to grade sits there and tries to decide how much money they can make for the company?

 

I doubt it.

 

Their business is based on volume not on the chance that there are a lot of Action #1 coming through that week.

 

Does that make sense?

 

R.

 

 

[G.A.tor]

I believe it has something to do with insurance cost.

 

Still, charging a percentage of FMV makes it difficult to defend their position that they are independent, impartial, third-party graders. If the fee being charged is related to the FMV of the book, and the FMV is determined by the grade, then impartiality is surely compromised.

when I asked CGC about this, it was insurance costs.... higher value books cost more to insure and require special handling/storage ,etc... seems pretty realistic to me...

 

you can't slab a Tec 27 for the same cost as a Deadpool 1 due to the insurance costs associated...so, you charge a % of value, to pay for that insurance

[Ares]

So either charge a flat rate rather than percentage or spell it out in costs

[G.A.tor]

So either charge a flat rate rather than percentage or spell it out in costs

you can't charge a flat rate if costs are based on value...the higher the value, the higher the costs...and they did spell it out 2.5%

[Jeffro.]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

 

I couldn't have put it better myself.

[G.A.tor]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

 

I couldn't have put it better myself.

the actual costs (fixed expense) are the same... it is the insurance costs that are the variables (thumbs u

[VintageComics]

In the automotive industry you have different price structures for different tiers of automobiles.

 

It costs a lot more to service a Benz than a Chevrolet. Tools are more complex, Insurance is higher, technology is higher.

 

Would it be fair to charge the Chevy dealer the same price to service their car as a Bugatti or an Aston Marton?

 

It's like a heiarchy of economics. Each company will charge what they think a market will bear in terms of costs. It's much more fair than a flat fee across the board....otherwise they'd likely have to charge more for moderns and then obviously lose business.

 

This way the guy who wants to slab his $100,000 book pays a fair fee and the guy who wants to slab his $100 book pays a fair fee.

 

R.

 

 

[Jeffro.]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

 

I couldn't have put it better myself.

the actual costs (fixed expense) are the same... it is the insurance costs that are the variables (thumbs u

 

 

Then charge a premium for those high dollar books that cost so much more to insure.

[VintageComics]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

 

I couldn't have put it better myself.

the actual costs (fixed expense) are the same... it is the insurance costs that are the variables (thumbs u

 

 

Then charge a premium for those high dollar books that cost so much more to insure.

 

...but they do.

 

[Ares]

So they will wait to insire a high value book first before grading?

What if someone wants walkthough?

[Jeffro.]

The FMV always confused me as well.

Shouldn't the cost of slabbing the book be trhe same no matter what age or value of the book?

 

Isnt this their attempt to profit from the value of your book?

 

 

I couldn't have put it better myself.

the actual costs (fixed expense) are the same... it is the insurance costs that are the variables (thumbs u

 

 

Then charge a premium for those high dollar books that cost so much more to insure.

 

...but they do.

 

 

CGC should hire you as a PR man.

[G.A.tor]

So they will wait to insire a high value book first before grading?

What if someone wants walkthough?

I asked them about this a while back when I was considering my first tec 27... the way it was explained is that their ins policy is written in such a way that when they receive/enter a book into their system, say a $50,000 Det 27, it is immediately insured and covered by the policy while in their possession, and that cost is calculated and I assume added to cgc's account cost, etc...

 

I am sure compared to coins, if they have a much higher volume, then there is economies at scale involved, that might make what we comic collectors consider a "comparable" service, to be cheaper or without the FMV consideration, but it really seems like a pretty simple concept (at least for me) to grasp with cgc having to charge a FMV...

 

and, even if it wasn't part of the equation, it is their business model...we chose to either support it or not... if folks didn't support it, I am sure it would go through an evolution process

[PokerKid]

I hope to be ticked off about this unfairness one day.