What Value Proposition Should Grading Provide

imbluestreak23 · 12-07-2021, 08:12 PM

Let's assume for the polls sake that you are only grading to maximize the value of your collectible. The question is simple, what ratio of margin that you receive on the collectibles that you grade is acceptable relative to the cost of getting those cards graded.

I.E.:
-I grade card X for $100, I have $200 in the cost of the card, I sell the card for $400, netting a $100 profit. In this example the value proposition is 1.0 or 1. For every $100 I spend in grading cost, I receive $100 in value created that I am able to capitalize on.
-I grade card X for $100, I have $400 in the cost of the card, I sell the card for $1,000, netting a $500 profit. In this example the value proposition is 5.0 or 5. For every $100 I spend in grading cost, I receive $500 in value created that I am able to capitalize on.

I have data for me going back to 2017 that I look at every now and then and it's interesting to see how that value proposition has shrunk due to a down market. Is it reasonable on an annual basis to spend $5,000 on grading only to receive $5,000 in margin? Or if you spend $5,000 in grading should you expect $10,000, $15,000, $20,000 in margin. So with our new normal starting at some point in 2022, what value proposition are you okay with? Is the value proposition that you are okay with:
-Between 0 and 1
-Between 1 and 2
-Between 2 and 4
-Between 4 and 6
-Between 6 and 10
-Only 10X

View Poll Results: Default What Value Proposition Should Grading Provide
Between 0 and 1	10	12.05%
Between 1 and 2	20	24.10%
Between 2 and 4	26	31.33%
Between 4 and 6	16	19.28%
Between 6 and 10	6	7.23%
Only 10X Plus	5	6.02%
Voters: 83. You may not vote on this poll

12-07-2021, 08:12 PM	#1
imbluestreak23 Member Join Date: Mar 2012 Location: Meandering the matrix code that the hobby/forum overlords spit out Posts: 18,118 shortslabs	What Value Proposition Should Grading Provide Let's assume for the polls sake that you are only grading to maximize the value of your collectible. The question is simple, what ratio of margin that you receive on the collectibles that you grade is acceptable relative to the cost of getting those cards graded. I.E.: -I grade card X for $100, I have $200 in the cost of the card, I sell the card for $400, netting a $100 profit. In this example the value proposition is 1.0 or 1. For every $100 I spend in grading cost, I receive $100 in value created that I am able to capitalize on. -I grade card X for $100, I have $400 in the cost of the card, I sell the card for $1,000, netting a $500 profit. In this example the value proposition is 5.0 or 5. For every $100 I spend in grading cost, I receive $500 in value created that I am able to capitalize on. I have data for me going back to 2017 that I look at every now and then and it's interesting to see how that value proposition has shrunk due to a down market. Is it reasonable on an annual basis to spend $5,000 on grading only to receive $5,000 in margin? Or if you spend $5,000 in grading should you expect $10,000, $15,000, $20,000 in margin. So with our new normal starting at some point in 2022, what value proposition are you okay with? Is the value proposition that you are okay with: -Between 0 and 1 -Between 1 and 2 -Between 2 and 4 -Between 4 and 6 -Between 6 and 10 -Only 10X __________________ @shortslabs I'VE WITNESSED HOW THE SAUSAGE IS MADE HERE...IT'S ROTTEN https://www.youtube.com/c/TylerShort Last edited by imbluestreak23; 12-07-2021 at 08:32 PM.