CGC Announces Price and Policy Changes 9 9

[october]

Haven't submitted a single book in two years and counting and I still manage to make money and collect. Just stop bending over.

[Beastfeast]

That’s annoying. 

[Stefan_W]

I dont care much about a buck or two increase across the board. The big change that I am really happy about is they are finally dropping the minimum requirement for pre-screens, so I no longer have to wait until I get 25 books that I can pre-screen at the same level. This is a game changer for me. 

[Stronguy]

It's now 15% (plus invoice fee and shipping) to grade a $1000 book. Yeah, that's definitely world class service.

[JollyComics]

I checked Voldemort website that astonished me.  I believe CGC is using their language to update the services and fees for example, CGC replaced Economy with the new word "Vintage" and few others. Voldemort updated their Pricing & Services (I don't know how recent they updated). I looked their prices that CGC's new prices and services are very similar but $1 and few more dollars over their prices slightly.

Voldemort is more likely to be blamed for causing the price hikes.  Inflation and COVID-19 pandemic are hurting us too.

[awakeintheashes]

On 4/18/2023 at 3:51 PM, Stefan_W said:

I dont care much about a buck or two increase across the board. The big change that I am really happy about is they are finally dropping the minimum requirement for pre-screens, so I no longer have to wait until I get 25 books that I can pre-screen at the same level. This is a game changer for me. 

That’s the silver lining for me. 

That Walkthru, change, though… I didn’t think it could get worse after the last increase. 

[october]

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. 

Edited April 18, 2023 by october

[Stronguy]

Pepperidge Farm remembers (ca. 2000)... 

[ramrodcar]

They also have a $1000 max value as part of their lowest tiers... so $24 or $40 vs. $85 to grade a $1000 book; $750 or even $1000 max value for modern/economy would go a long way to shore up offerings/adjust for inflation/etc...

[Stronguy]

On 4/18/2023 at 3:00 PM, october said:

comic that is sent into CGC, then to Heritage

If it's going to Heritage, just let them slab it for you.  They still get good ol' boy treatment.

[blazingbob]

On 4/18/2023 at 4:00 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. 

CGC has achieved the goal of NOT having to doing any of the work of finding the material to make as much money as the seller who submits it on $1000+ books.

As I've posted before,  everybody is making money except the person who buys the books.  

 

[october]

On 4/18/2023 at 3:07 PM, blazingbob said:

CGC has achieved the goal of NOT having to doing any of the work of finding the material to make as much money as the seller who submits it on $1000+ books.

As I've posted before,  everybody is making money except the person who buys the books.  

 

Selling shovels in the gold rush. 

[Westy Steve]

People are going to have to learn to grade, put the books in Mylar, and sell local for cash. Look for more comic-centric shows to pop up moving forward. It’s the good old days all over again. 

[Buzzetta]

We all believed this was eventually coming.  However we assumed it would be at a higher threshold.  The $1,000 threshold is pretty low to be honest.  I may need to actively rethink how I plan on selling off my collections in seven years and what will net me the most money to do what is best for me.  My loyalty is to my wallet. 

[Gaard]

Businesses raising their prices don't really bother me. It's to be expected. But to raise prices when your QC is as poor as it is ... that's just pathetic.

[greggy]

On 4/18/2023 at 1:14 PM, Buzzetta said:

We all believed this was eventually coming.  However we assumed it would be at a higher threshold.  The $1,000 threshold is pretty low to be honest.  I may need to actively rethink how I plan on selling off my collections in seven years and what will net me the most money to do what is best for me.  My loyalty is to my wallet. 

What is the royalty agreementÉ

[JollyComics]

On 4/18/2023 at 3:14 PM, Buzzetta said:

We all believed this was eventually coming.  However we assumed it would be at a higher threshold.  The $1,000 threshold is pretty low to be honest.  I may need to actively rethink how I plan on selling off my collections in seven years and what will net me the most money to do what is best for me.  My loyalty is to my wallet. 

Or my collection can be inherited.

[JollyComics]

On 4/18/2023 at 3:16 PM, Gaard said:

Businesses raising their prices don't really bother me. It's to be expected. But to raise prices when your QC is as poor as it is ... that's just pathetic.

Blackstone just owns CGC deed.  Do nothing.

[Black_Adam]

On 4/18/2023 at 1:09 PM, Westy Steve said:

People are going to have to learn to grade, put the books in Mylar, and sell local for cash. Look for more comic-centric shows to pop up moving forward. It’s the good old days all over again. 

Assuming they meet the threshold for consignment, selling raw comics through MyComicShop is also a great option. While the sell price for a raw comic may not be as high as a graded copy, not having to worry about the costs associated with grading usually equals more profit, in my relatively limited experience.

[NewWorldOrder]

On 4/18/2023 at 12:01 PM, ramrodcar said:

It's disappointing that once again, the value limits on each tier have not increased at all. For non SS comics, it'd be easier to swallow this if say Modern/Economy (Vintage) were $750 limit, and Standard was $1500. There's too big of a gap between the tiers, and I can't remember for the life of me when there's been an increase on value limits for Modern/Economy. A $400 limit is not realistic in 2023.

CGC increased Modern max value from $200 to $400 during covid during the 2021 price hike.  Most moderns arent worth close to that number to be honest or worth your time and money to get graded.  If people in this hobby actually knew what they were doing CGC could lay off half their work force.  Too many modern books graded by CGC belong in the trash can.

Edited April 18, 2023 by NewWorldOrder