PSA, which determines the authenticity and grades of collectibles, … [+]
Over the past five years, the world of sports and trading card collectibles has seen a huge resurgence as a new generation of collectors discovered the “hobby.” This growth has led to innovative new business models such as Loupe for box splitting and Goldin for auctions. But perhaps the biggest beneficiary was the Professional Sports Authenticator, better known as PSA, which authenticates and grades collectibles. I sat down with his PSA president, Ryan Hoge, to discuss the growth of the hobby, how PSA has evolved in recent years, and how his background as a technology product leader helps his role. I did.
Dave Knox: For those unfamiliar, let's start by explaining what a PSA is. Could you please explain PSA's business?
Ryan Hoge: PSA primarily authenticates and grades collectibles such as trading cards. Started in 1991 with a focus on sports cards and expanded over 30 years to include TCG (trading card game cards such as Pokemon, Magic: The Gathering, etc.), autographs, and game-used memorabilia (such as vintage baseball bats and gloves) I've been doing it. , other categories include Funko Pops and collectible toys.
Knox: The past few years have seen significant changes in the world of collecting. Since the late 80's he has had a complete renaissance for those who remember his baseball cards from the 90's. Can you talk about the developments in the collecting industry over the past three to four years?
Hoge: I was one of those kids who collected in the “junk wax era” of the late 80's and early 90's when things were mass produced. Many people thought that the card they bought when they were 10 or 11 years old would fund their future education, but most were disappointed. Nevertheless, it was a fun and engaging community that became a lifelong passion for many. There are several factors that are shaping the current stage of the trading card business. The first big change came in the mid-to-late 90s when eBay came on board and made it possible to buy and sell without having to physically own anything. This opened up new possibilities, but also created challenges regarding the reliability of transactions. Third-party grading like PSA has emerged as a valuable addition to the collecting industry, providing assurance about the condition of items and bringing additional liquidity to the hobby.
Fast forward to the 2000s and 2017-2018 saw a resurgence of interest in collecting. This coincided with the aging of those who collected in the late 80's and his early 90's. I personally rediscovered card collecting after my first daughter was born in 2012 in search of a more home-based hobby. The 2020 pandemic further accelerated the growth of the hobby, with people stuck at home, no live sports on TV, and a desire for a nostalgic outlet during difficult times. This led to the hobby's explosive growth, which continues to this day.
Knox: You worked in product execution at PSA and have an impressive background in the certification field. You've seen the emergence of technology in this space in recent years, from AI as a grading tool to new trading, buying and selling platforms. What excited you about joining PSA as a product lead?
Hoge: As a PSA customer since 2000, I recognized the importance of the PSA brand and its reputation in the collections ecosystem from the beginning. A closer look at the business reveals a company with immense potential for innovation. During the previous 15 years, there had been limited investment in technology and the team was operating on a shoestring budget. The approach was to ship a minimum viable product with little subsequent innovation. My initial challenge and excitement was rooted in the realization that Nat was willing to fund the growth and technology investment necessary for innovation. Working with my CTO, he grew the product and technology organization from about 30 people in mid-2021 to over 160 people today. This includes rapid adoption, identifying problem areas, and investing resources to bring new and innovative solutions to market.
Knox: You recently transitioned from being responsible for a major product to the role of president. How has a product-centric perspective influenced your approach to company-wide strategy?
Hoge: After serving as chief product officer for over a year, my transition to president last November was a valuable transition. My product background allows me to engage deeply with teams, especially when considering new solutions for internal operations. I understand how to ask the right questions, navigate the tradeoffs between time to market and scalability, and ensure informed decisions. On the customer-facing side, I'm a collector myself, so I serve as a customer advocate when evaluating new solutions. As a team of passionate collectors in-house, including Nat, we bring a unique understanding of collector issues and nuanced tastes. This allows us to provide detailed feedback when reviewing designs and early concepts for enhancements, such as the online submission experience or new features in the PSA mobile app.
Knox: In the area of authentication, especially when dealing with new customers, how do you communicate the role of PSA in the marketplace and its impact on collectibles such as cards, tickets, and other items?
Hoge: The communication approach is nuanced and varies depending on the type of item. For example, when a high-profile article about Mickey Mantle's record sales of cards and game-worn jerseys runs in mainstream media and platforms like ESPN, it can garner attention from people outside of his core collector community. It often happens. The important point to note is the realized price. Authentication and grading by PSA provides an additional level of assurance to buyers, indicates they are purchasing an authentic item, and can increase rarity. This is particularly attractive to individuals looking to sell, as authentication and grading increase the value of the product. On the educational side, we provide a wealth of information and content to empower collectors. From pricing tools to research materials and expert articles, our goal is to enhance collector knowledge, leave you better informed, and inspired on your collecting journey. This is critical to providing an easy entry point for individuals, whether they are rekindling an interest or showing an interest in collecting for the first time.
Knox: With the proliferation of collections over the past few years, many athletes and celebrities have publicly embraced their love of collecting. How has PSA responded to this trend and influenced your approach?
Hoge: Witnessing athletes like Mike Trout openly collect was incredibly fascinating and rewarding, both as a collector and as a member of the PSA team. Whether you're creating your own set of rookie cards for your family or you're an avid Philadelphia Eagles fan eagerly looking for the next Jaylen Hurts rookie card, it's really exciting. . Bobby Witt, who not only represents PSA but is also an avid collector, will further strengthen his involvement with the community and fans. We often get short notice that someone like Mike Trout is in town, whether it's playing against the Angels or just visiting. They express an interest in stopping by our office for a tour, meeting, or to drop off a card. It's great to see this group actively participating. These athletes serve as ambassadors for the hobby, expanding its appeal beyond the core group with which they have been deeply involved for over a decade. With an active presence on social media, athletes share their passions and interests, contributing to the growing popularity of this hobby. In addition, there are many active collectors among athletes who are not known to the general public, but several names are being withheld for now.
Knox: PSA has a rich history in certification and grading and has expanded its reach to include companies like Goldin. How do you approach the horizontal dynamics of the collecting universe? As the leader of the PSA brand within the parent company, how do you see the synergies between these diverse components?
Hoge: The collections industry operates as a complex ecosystem with different providers operating at different layers of value exchange. Card manufacturers serve as a source of new products and drive the majority of items entering the hobby. Whether it's sports cards or non-sport cards like Pokemon, their role is very important when collectors are avidly looking for rare bargains or collecting team his sets. Entities like ours introduce value by focusing on third-party authentication and grading, increasing scarcity and providing protection through ownership. Other service providers operate in the secondary market and offer platforms for buying and selling, represented by eBay, Goldin, PWCC, and Vault providers. PSA has its own Vault, facilitating secure transactions without worrying about shipping. Hobby shops provide a customer-centric experience and serve as a place to purchase new products, seek advice, trade, and even submit cards for grading. Our network includes partners such as hobby shops, dealers, enthusiasts, and hobbyists who navigate the entire value chain to support your passion. We recognize our role in driving liquidity and trust in this ecosystem and maintain strong relationships with all our partners, regardless of market or manufacturer. Synergies between these diverse components are essential to the functioning of the industry.
Knox: Maintaining momentum in the collecting industry, especially with the surge in the past year, requires a strategic approach to maintaining enthusiasm for collecting in PSA, especially card collecting.
Hoge: Indeed, that's a pertinent question. The key is to focus on the essence of collecting: fun. PSA has introduced initiatives like the Set Registry, which provides a platform for collectors to compete, build, and connect. This not only fosters a sense of community, but also adds a fun dimension beyond the speculative nature of the markets.
Additionally, a focus on education and information is essential. Providing tools, resources, and content to collectors, such as pricing tools, research articles, and expert insights, helps them become better-informed collectors. This not only improves your overall experience, but also allows you to make better informed decisions.
It's about allowing collectors to find joy in the hobby beyond the economic implications. While the economics are part of the appeal, long-term sustainability lies in the joy and camaraderie that collecting brings. This approach helps build a resilient and vibrant collecting community, ensuring enthusiasm continues through different market cycles.
nox: Looking back on your experience at both Microsoft and PSA, what are some valuable lessons you learned in the collections industry that you wish you had learned at Microsoft? Conversely, what aspects of your time at Microsoft do you think were valuable lessons learned or learned in the collections industry? Have you incorporated it into your PSA as a practice?
Hoge: During my time at Microsoft, I navigated the challenges of new product development during the early incubation stages, when Microsoft had little presence in the market. This experience highlighted the complexity of bringing new products to market and emphasized the need for rapid iteration and responsiveness to customer feedback and market trends. We also worked on established products with large market shares and billions of users, such as Windows and Office. This posed the danger of complacency by established positions.
Throughout my career at Microsoft, I prioritized customer engagement and worked closely with customers by actively listening to them, analyzing product usage data, and staying aware of industry developments and competitive landscape. We have maintained a strong connection. With a healthy dose of vigilance, I have strived to instill this customer-centric approach into PSA and ensure that we are agile and responsive to market changes. In my role here, I have been pleasantly surprised by my ability to make quick decisions and pivot the company's strategy when needed. This agility to adapt within days stands in contrast to the lengthy decision-making processes typical of large companies like Microsoft. This has been a key element in our ability to continue to dynamically respond to the evolving needs of our customers and the market.
