PGX Bashers

[VintageComics]

I think that the biggest issue with starting a competitor to CGC is that they are widely accepted, and a new competitor would not be initially.

 

Why do most people submit books to CGC? Because they sell for more than unslabbed books. When people buy a CGC'ed book, they are relatively comfortable that it will be close to the specified grade and that it will be restoration free (if a universal holder). That makes people pay more money for CGC'ed books.

 

It is going to be very hard for a competitor to get a large number of submissions, since people will not initially pay a premium for books in their new, unfamiliar slab. Yes, some people will play around and submit a few books, but the dealers who sell thousands of slabs a year are unlikely to submit many books to them if they don't command the same premium that CGC books do. Without getting to that critical mass of slabs that will generate widespread acceptance, I think a competitor is very likely to fail.

 

In a way, CGC has the same moat around their business that Ebay does. It shouldn't be that hard to create a better platform for online auctions, and to run the business better, but everyone who has tried to beat Ebay has failed (and lots of deep pockets have tried), because once you've got the business in place, the sellers go there because that's where the buyers are, and vice versa.

 

That depends.

 

There are quite a few directions a competitor could go in to outflank CGC, that would make them instantly appealing in the market...

 

The same could be said for eBay. For all the stuff people have been complaining about on here with eBay's "problems" nobody has built a better mouse trap yet.

 

 

There are two problems competing with eBay: they're a multi-billion dollar corporation that AGGRESSIVELY litigates anyone that even sniffs of infringement, and the competitors have never wanted it. It's always been a "side" business, wheter it was yahoo, or whoever. All legit competition didn't really pour everything they had into it.

 

CGC obviously isn't a multi-billion dollar corporation.

 

CGC is definitely a multi-million dollar corp though.

 

(thumbs u

 

Like I said, nobody has built a better mouse trap regardless of the hurdles.

[Designer Toast]

The Frazetta appreciation thread in the Sig Room is pretty amazing.

 

Thanks! I'll have to check that out. (thumbs u

 

From the ashes! Brian, hope you are doing well.

[capt_comics]

Along with a better product, they'd have to have better prices, faster turnaround, and generally operate at a loss for quite some time.

Classic Incorporated would be competition right now today...if they holdered the books they "pro-screen". Their website reads like they do everything CGC does except finalize their service with plastic packaging. At $3 a book, sans holder.

 

Of course they're a CGC / Heritage "marketing partner", so it will never ever happen. But they have the reputation, facility, skills, and acceptance. All that's missing is some competitive auction house like ComicLink to pimp their brand.

 

I'm not very familiar with the graded card hobby but from what I understand there are two major companies that grade cards, and there is a relationship in grade/price between the two companies (correct me if I'm wrong).

 

I think the same thing would happen to any competitor who went up against CGC....there would quickly be a "placement" of which position the public would believe new company falls into...stricter than CGC or less strict than CGC 'cause let's face it...nobody is paying multiples of guide for a nice holder....they're paying for the grade. If the new company receives recognition as "more strict" (just like one card company is) then their slabs would fetch more money. If the new company is "less strict" then their slabs fetch less money.

 

This would likely be what the PR/Marketing department of the new company would have to recognize and target...where do they want to stand in relationship with CGC.

 

Because CGC was first (and is widely accepted) they are the current standard.

 

That's why it'd tough for a new company to break in.

 

Out of curiosity who came first in sports cards...Beckett or PSA? Which one is "stricter"?

 

 

PSA is the CGC of cards. Both PSA and SGC(formerly of the CGC brands) were before Beckett.

 

For Pre-war cards(Goudey, Playball, T and E cards,etc.), SGC is certainly considered the equal or better to both PSA and Beckett.

 

However, for most cards, new and old, PSA cards will bring more.

Beckett is considered by some a stricter grader, but that's yet to be correlated with prices realized across the board.

 

[RockMyAmadeus]

I think that the biggest issue with starting a competitor to CGC is that they are widely accepted, and a new competitor would not be initially.

 

Why do most people submit books to CGC? Because they sell for more than unslabbed books. When people buy a CGC'ed book, they are relatively comfortable that it will be close to the specified grade and that it will be restoration free (if a universal holder). That makes people pay more money for CGC'ed books.

 

It is going to be very hard for a competitor to get a large number of submissions, since people will not initially pay a premium for books in their new, unfamiliar slab. Yes, some people will play around and submit a few books, but the dealers who sell thousands of slabs a year are unlikely to submit many books to them if they don't command the same premium that CGC books do. Without getting to that critical mass of slabs that will generate widespread acceptance, I think a competitor is very likely to fail.

 

In a way, CGC has the same moat around their business that Ebay does. It shouldn't be that hard to create a better platform for online auctions, and to run the business better, but everyone who has tried to beat Ebay has failed (and lots of deep pockets have tried), because once you've got the business in place, the sellers go there because that's where the buyers are, and vice versa.

 

That depends.

 

There are quite a few directions a competitor could go in to outflank CGC, that would make them instantly appealing in the market...

 

The same could be said for eBay. For all the stuff people have been complaining about on here with eBay's "problems" nobody has built a better mouse trap yet.

 

 

There are two problems competing with eBay: they're a multi-billion dollar corporation that AGGRESSIVELY litigates anyone that even sniffs of infringement, and the competitors have never wanted it. It's always been a "side" business, wheter it was yahoo, or whoever. All legit competition didn't really pour everything they had into it.

 

CGC obviously isn't a multi-billion dollar corporation.

 

CGC is definitely a multi-million dollar corp though.

 

(thumbs u

 

Like I said, nobody has built a better mouse trap regardless of the hurdles.

 

Find me $5 million and I will. Guaranteed.

 

And you'll get a return on your investment.