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CGC Announces Price and Policy Changes
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Started by ThatNerdyCanuck,

155 posts in this topic

lou_fine

lou_fine

Posted
Posted
On 4/18/2023 at 1:00 PM, october said:

Hypothetical $750 raw purchase of a $1500 FMV (post-grading) comic that is sent into CGC, then to Heritage.  

Shipping to/from CGC (FedEx Ground): $40

Grading fee: $150 

Shipping to Heritage: $20

Heritage vig on a $1500 total sale (assuming consignor gets 100% of hammer, 0% of BP): $300

Gross after all fees: $990

Profit after all fees: $240 

Tax on profit: $89 - $24 (37% to 10% tax brackets, short term cap gains)

Total net profit post fees and tax: $151 - $216.

 

Pretty sad when it's (arguably) not worth buying something for half FMV, after accounting for inherent risk (damage, resto, mail loss, harsh grading, low auction results) and with fees/taxes taking the lion's share in the most likely scenario. 

Don't go there with this amount of details.  (tsk)

By still showing so much bottom line profit on your end, you are just encouraging these porkers to waddle their way back to the trough again to take another bigger bite out from your wallet.  Yum, yum, oink, oink, oink..........lol

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rjpb

rjpb

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Raising prices is a regular part of business in order to keep up with inflation, but raising the percentage on more expensive books from 3 to 4% is a load of spoon. As the cost of items rise, the percent collected does not need to change in order to keep up with inflation. The value of collectible comics over the last few years has already increased by a rate that fast outstrips inflation. so CGC was already making more per submission on higher dollar books than they had been before raising the percent fee charged. 

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lou_fine

lou_fine

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On 4/18/2023 at 1:03 PM, Stronguy said:

Pepperidge Farm remembers (ca. 2000)... :preach:

image.thumb.png.e8529e3f67d881e02c42015cc4741f42.png

This is the one and only single reason that I see for collectors to get their books graded and slabbed before it comes time to sell them.  hm  (thumbsu

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MrBedrock

MrBedrock

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On 4/18/2023 at 5:03 PM, JollyComics said:

 CGC changed everything since Matt Nelson was promoted to the president of the company.  They are different now ...

Who is this Matt Nelson feller everyone keeps talking about? He sounds awful.

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MrBedrock

MrBedrock

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On 4/18/2023 at 5:38 PM, Kevin76 said:

I should be like all the dealers and start charging the GPA based on what I think it'll grade at for raw books, If I think it's a 9.2 and GPA says it sells for $850. That's the price it'll be.  Even though I can't make that guarantee and the buyer ends up with a

... 9.4 or a 9.6. :hi:

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MrBedrock

MrBedrock

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I think the timing is interesting because the overall market is declining or flat at best. There is a high likelihood on most modern to bronze books that you could pay these higher fees and by the time the books are graded and returned they could be worth significantly less then when submitted. 

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blazingbob

blazingbob

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Posted

12/21/22 submission of a Reholder.

Returned 4/19/23

4 months for a reholder,  

And with this new price increase that improvement in turnaround times will go right out the window so line up those "Fast track" checks for the ready.  Put Mo Money in their pockets.  

CGC has basically gone the route of "using no rubbers".  They love the smell of burning rubber and screaming submitters.  

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Dick Pontoon

Dick Pontoon

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Posted
On 4/18/2023 at 6:38 PM, Kevin76 said:

I should be like all the dealers and start charging the GPA based on what I think it'll grade at for raw books, If I think it's a 9.2 and GPA says it sells for $850. That's the price it'll be.  Even though I can't make that guarantee and the buyer ends up with an 8.5 

All the dealers? Is that how Steve Randolph prices his books?

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joeypost

joeypost

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On 4/19/2023 at 3:00 PM, MrBedrock said:

I think the timing is interesting because the overall market is declining or flat at best. There is a high likelihood on most modern to bronze books that you could pay these higher fees and by the time the books are graded and returned they could be worth significantly less then when submitted. 

You have to factor in the signings. CGC now gets a few bucks more per book for every signing they promote. The amount of moderns they receive through their SS program would surprise all of us. How many SS facilitators have their wagon hitched to CGC’s horse? They can’t stop submitting. Their livelihoods are built around a very fragile and fluid model. 

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blazingbob

blazingbob

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On 4/19/2023 at 5:03 PM, joeypost said:

You have to factor in the signings. CGC now gets a few bucks more per book for every signing they promote. The amount of moderns they receive through their SS program would surprise all of us. How many SS facilitators have their wagon hitched to CGC’s horse? They can’t stop submitting. Their livelihoods are built around a very fragile and fluid model. 

Ah you are referring to the "STUD" program.  Sign Them Until Death,  submitted under the CORPSE tier (Cgc Organized Recognized Profit Secured Exclusive)

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Dmac538

Dmac538

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On 4/19/2023 at 11:08 AM, Gary Strange said:

CGC doesn't even do onsite grading any more at any of the cons I've attended in the last few years, which would be my only reason to pay a premium for grading.

I don't believe you will ever see that again.

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lou_fine

lou_fine

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Posted
On 4/20/2023 at 7:10 AM, eddly said:

My modern drek slabs have increased in value now due to this price increase. Thank you CGC.

@NewWorldOrder

Well, the other big positive out of this is that you can now spend a lot more loving time with your books as your inventory holding time will increase exponentially as a result of your price increases.  :devil:

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JollyComics

JollyComics

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On 4/20/2023 at 12:06 PM, glockwookie said:

Would this price increase/policy change have anything to do with the email for discount membership I got this morning? Sounds like a pretty good deal.

I was slightly overreacted to the increased prices earlier but we have to think positive on the other side.   Yes, I will renew and update my membership to Elite next week and use $150 credit and 10% discount online submissions to save some money for one year.  FURTHERMORE, I hope I will win 1st, 2nd or 3rd place in CGC grading contest.

@glockwookie  If your membership will be renewal automatically, yes, you will get the discount on your membership.  I will get it too.   After one year of membership that will be expired on April 30, 2024, I will stop paying my membership and will lose the discount.

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