Grading- PART 1 | Mobotoys V1

Chapter 1 - GRADING, More than just a Number

Chapter 2 - Process vs Standards - are they really different?

Exhibit 1440

Grading ... in the world of Battery-Operated toys requires one to answer more than one question. Questions such as:

What do those words "Near Mint" in the eBay listing tell us? Can we trust them?
What is the difference between a C8 toy and an "Excellent" toy?
The description says it is in "good" condition ... what does that mean?
What is grading and how does it work?

The answers are surprising. Can we trust "Near Mint"? No. We have seen this more than once where the toy has significant grade issues on one part, but is claimed "near mint" presumably because the rest looks nice.

What is the difference between C8 and Excellent? Nothing. Although it depends on whose scale you are using Excellent is typical nomenclature for "C8".

The third question is a ruse, without knowing the definition of their use of the word "good" one can only conclude it is better than "not good".

Finally we have the last question, and perhaps the most important. What is grading and how does it work?

This is the correct question to ask first.

The purest definition of grading for collectibles is as follows:

Grading - The process of determining the grade, or condition, of a collectible item. Grades are typically used as one of the key factors in determining the value of the item being graded and are often "grade certified" by 3rd parties to ensure a fair and accurate grade assignment.

Indeed grading is indeed more than just a number, it is a process, and for Battery Operated Toys you will see the MOBOTOYS book of grading sets a new bar. Read on for more.

Exhibit 0057

Exhibit 1251

In grading, the person who assigns a grade to an object is going through a process, and within that process the person follows predetermined definitions for each grade. The process followed and those definitions are what is governed by Standards. It is these standards that allow an activity, such as grading, to be repeatable and clearly understood, and hopefully accepted by everyone.

You are a Standards Master. We all follow standards everyday, some defined by us, and some by others. How you do the dishes, or the route you drive to work are some of your "standards". If it is an activity you repeat, you likely have standards built into it whether you think about them or not. It's why you are "good" at something, you have one or more standards nailed down on how you do it.

There is however an issue with standards; when others do not understand the standards being followed, or perhaps do not agree with them, then they cannot agree with any conclusion being made without blind trust. "Near Mint" to one person may be miles apart from a different persons view of the same toy. Who is right and how do you know? Have you ever heard of the "seat up / seat down" argument? Either can be the standard, but all must agree to the standard and this is the key to any standard, agreement!

Once we have Standards, we then can add Standard Processes. Like dueling pianos, Process and Standards are different and play slightly different riffs, but they sure sound good together when in harmony. This journey is indeed worth the effort.

Next, we explain the thinking behind creating new standards targeted specifically at Battery Operated Toys.

Chapter 3 - Why? Why Here ? Why Not!

In this section we discuss the 5 Ws of grading Battery operated toys and our philosophy on each. Sometimes, the most difficult aspect of grading is removing emotional bias from our judgment. When we really like a toy (or anything) we tend to "overlook" a flaw or two. By focusing on individual aspects of an item being graded it is more difficult for flaws or other issues to be overlooked. Understanding these individual aspects are our FIRST STANDARD in grading and is therefore the foundation to a solid grading philosophy. Always remember:

The more observations made, the better the overall observation.

More alone is not enough (is it ever?). Quantity without quality is just a pile of stuff.

Our observations must be careful considered and most importantly, equally applied. This means if we are going to grade an aspect of one item, then we must grade the SAME ASPECT of all other items that share this aspect. Anything less is biased grading and trust is again lost.

Perhaps a better statement to remember is "The more carefully thought out and equally applied observations made across an entire set of similar items are, the better the overall observation of each item within that set is". Not as catchy, but way more accurate.

Here we will leverage the tried and trued "5Ws"as our first STANDARD categorize and understand what we are doing. For more information about the 5Ws check out this article on WIKI.

The "Intent" of each Grade

There is a principle of "Commanders Intent" where the importance of communicating our "intention" rather than "dictating an action" is not only a superior method communicating but also improving any team proficiency. There is a great video on YouTube here ... recommended watch for everyone with good intentions.

Here we are going to use the Commanders Intent principle to communicate what each grading level (1 to 10) is intending to reflect (regardless of the attribute being graded). The table included here can be used as overall guidance when grading as some general dividing lines between the grade numbers. While this table helps us in a subjective "gray area" between grade numbers, it is these types of differences we are always looking for.

For in-depth grading number guidance for each Toy Characteristic please see MOBOTOYS Book of Grading - PART 2, The Numbers.

Table Notes:

1 - Missing parts includes all major and most minor accessories. An acceptable missing minor accessory would be the original soap for a bubble making toy. It has long since evaporated.

2 - Damaged Parts includes but is not limited to broken, cracked, bent, twisted, dented, heavily scratched, and melted parts.

3 - Rust / Corrosion - Any damage to metal that is not mechanical (e.g. scratched) would be considered rust / corrosion, where rust is the oxidation of the metal, and corrosion is the chemical reaction due to battery leakage. Rust and corrosion have similar destructive effects.

4 - Reproduction Parts only count if they closely approximate the original part. Good quality reproduction parts can be expensive depending on the part, scarcity, and demand for the part, but well made reproduction parts can add much more value back into the toy over a poor repair to the original part(s).

5 - Repairs should always be of a high quality where quality means if it is a structural repair, the result is "as good or better as new" when it comes to handling the stresses of normal handling and operation. If it is a cosmetic repair, then it has been repaired using proper techniques to minimize visual impact of the repair (i.e. it is not noticeable). If the repair is not high quality (did not fix the problem or visually is unacceptable, then downgrade accordingly).

6 - Colors will fade over time. It does not matter the material (metal, plastic, fabric…) nor the coloring method used (paint, litho, dye…) they all will fade. The only difference is the rate they faded at. This rate varies widely based on environment. A toy that has sat in the window for 30 years will have little color left, while a toy stored in a box in a climate-controlled room for 30 years will still look new (although it too has faded just a tiny bit). Grading here can be difficult as there is no "reference standard" for what the original color actually was. Here we use our experience of examining hundreds of toys to get a "running standard", for example, what a "Near Mint blue" looks like verses one that has faded to an "Excellent Blue".

7 - Blemishes include light scratching, stains, adhesive residue, writing (ink), light dents, minor fur / fabric damage. Blemishes only affect display, never functionality.

In recent years, trustworthy grading of Battery-Operated toys has been mainly delegated to Auction Houses. This practice makes sense as only auction houses typically have access to experts (with documented standards) who can examine a wide variety of items and provide a knowledgeable assessment of both the condition and value of the collectable toy. The industry standard for collectible grading has been a scale of 1-10 (sometimes referred to as C1 - C10, where "C" stands for "condition"). A C10 Toy is referred to as "MINT" meaning it is in the same condition as when it was boxed and left the factory. While researching grading of Vintage Battery-Operated toys it became clear there really is no standard. Every book, website, advertisement seem to have their own. To make matters worse, the definitions used apply to all vintage collectables. Let’s pause first and applaud the efforts put into providing a grade of an object to give you and me, the buyer, some idea of the condition. However, "Good intentions can have bad outcomes" comes to mind here. Trustworthy sellers with their own grading standard is not a standard at all unless both the buyer and seller agree to those standards.

While most vintage battery-operated toys on auction sites such as eBay, are in the C5 - C9 range the numbers are NOT applied evenly or fairly in most cases. This is MOBOTOYS conclusion based on our massive experience obtaining 1000's of battery operated toys from online sources (over 1500 at museum launch, 2021), and keeping accurate records of them all. It has become clear as a purchaser, we can only really trust the pictures and even then only hope they are high quality and show all the right angles.

So the "WHY"is because there is no publicly documented grading standard that really works for Battery Operated Toys, and Battery Operated Toys is what we want to grade. On to "WHY HERE" next. "WHY HERE" is easy to explain. Here at MOBOTOYS we want to help resolve both the lack of standards AND the lack of public access to reasonable standards. Nonetheless here you will find reasonable Standards clearly laid out for both buyers and sellers. Standards we will stand by (until revised). Why Not ... this is FUN!!!

Exhibit 1245

Chapter 4 - Grading 101, the 5 Ws

Copyright 2021

MOBOTOYS

Book of Grading

Chapter 5 - Good Grading Intentions Intentionally Grade

1W - WHO (performs the grading)

A collectible grader is just like any other job with predefined skills and knowledge required perform a series of task. Just like with any job, there are some who do it well and some who are less apt. Anyone can become a grader if they have, or are willing to learn, the following skill set:

Ability to study / learn / follow standards
Ability to research historical records about some toys (what are they supposed to do? for example)
Ability to inspect an object in a clinical manner
Ability to insert batteries and make the toy work.
Ability to apply standards in a consistent manner over large numbers of items
Ability to publish notes on grading observations (minimal)
Ability to prioritize workload
Ability to provide additional insights about the item worthy of recording against the item.

MOBOTOYS strongly encourages any establishment who desires to establish accurate and consistent grading to invest in a dedicated and trained Grader. A dedicated role helps to maintain consistency across items as they move from "Learn" to "Leverage" in the 4 stages of learning. Always remember, Learn and Apply move the world, TEACH and LEVERAGE move the world forward!

A good idea, if resources allow, is to employ a secondary (and independent) grader who quickly verifies the initial grading. This helps ensure a flaw was not overlooked in a score, or inversely, a score was recorded as lower by error. A Master Grader is typically "trusted without verification", but a second set of eyes never hurts.

So to sum things up, anyone who enjoys doing the skills above can do a good job of grading collectibles. By continual learning and applying of knowledge you will become master grader. ( <-- true for anything )

Learn -->

(unconscious incompetence)

Apply -->

(conscious incompetence)

Teach -->

(conscious competence)

///Leverage\\\

(unconscious competence)

The 4 Stages of Learning

2W - WHAT (are we grading)

Top 5 reasons we Grade:

5. We grade because we like to observe, analyze, and document the world around us.

4. We grade for INVENTORY records. These records are critical for insurance coverage needs of any large collection or high value items. Its also nice to know "what you have".

3. We grade to hunt down and point out out easily overlooked flaws that make an item "somewhat less" than it was when brand new (the fun is the hunt).

2. We grade to provide a numerical score that can be used to quickly assess the condition of an item to determine just how awesome (or awful) it truly is.

1. We grade to prepare for the next step: SET the VALUE (price) of an item.

While setting value (price) is not discussed here, it does rely on accurate grading as a key input to establish a fair market price for any collectible. It is this tie between "grade" and "value" why grading is an important and serious industry that goes well beyond "just a number".

Exhibit 1435

3W - WHERE (are we grading)

4W - WHEN (do we grade)

5W - WHY (do we grade)

Know your subject.

A wise early step in grading a collection is to understand what are the common characteristics across the collection, or within subsets of the collection. We find the use of "Model Based Architecture" methodologies can help us here, or more specifically, a Class Diagram representing everything in the collection. Following these principles we group our Battery Operated toys into categories or "Classes" (think classes as just buckets of stuff). These buckets can contain smaller buckets, this is called "decomposition" (i.e. breaking down large groups into smaller groups).

To the right we see a Class Hierarchy created for MOBOTOYS. Each of these Tier 2 Classes decompose into smaller buckets, but for purposes of grading, this is as deep as we need to go. So how does it help with grading? Walking through an example of this process the easiest way to explain this step.

In our class hierarchy we decided to "separate all Battery Operated Toys into one of 10 buckets (classes) based on type of function; some represent vehicles, some are coin banks, some blow bubbles, etc. It really does not matter how we define the buckets, its about the knowledge obtained while doing this grouping. We stumbled into grading related insights like "All toys in this collection have a battery compartment so we should "grade that", but what about when the batteries are in the remote, is the battery compartment part of grading the remote?" In this real life example we decided battery box is always graded separately, and the remote control should always be graded separately, and bingo ... we nailed down two grading categories!!!

The takeaway is the act of sorting tells us what the characteristics are of all the items in the collection and how these characteristics are applied across the collections, this becomes a FOUNDATION for organizing the grading which is fully detailed in PART 2 of this book.

For Battery Operated toys we came up with a reasonable set of characteristics where some apply to just about all Battery Operated Toys (Battery Box, Metal), others are specific to just a few sub-categories of the collection (remote control). Both are characteristics that need to be graded, and the "sorting" done above enabled clean breaks across the set. In the picture to the right we can see the complete candidate list of characteristics to be graded. Below is a brief description for each of these:

Overall - Grade that summarizes the overall condition of the collectable and is the number most associated with the overall value of the collectible.
Battery Box - Grade that summarizes the condition of the Battery Box (typically not used if Batteries are in remote)
Metal - Grade that summarizes the condition of the Metal / Tin materials. Do not include battery box metal.
Paint / Litho - Grade that summarizes the condition of the Paint / Litho graphics
Rubber / Plastic - Grade that summarizes the condition of any Rubber / Plastic parts (not including tires / treads)
Tires / Treads - Grade that summarizes the condition of tires / treads.
Fabric / Fur - Grade that summarizes the condition of Fabric / Fur.
Remote Control - Grade that summarizes the condition of the Remote Control (battery box graded separate)
Box - Grade that summarizes the condition of the box. MUST note if box is Original or Reproduction.

TBD (next to grading characteristics) - This is where a grading value is entered. The grading value is based on the Industry Standard Grading Scale of C-1 to C-10, where C-1 is extremely bad and C-10 is Mint. See Part 2 of this book for full definitions and applications of these values

NOTE: SMELL is NOT Graded. Any toy that has an strong offensive odor should NOT be graded until the odor has been completely eliminated (not covered up but wiped out by whatever means necessary). This is subjective.

To efficiently grade collectables there are a few tools and accessories required, and a few more that are completely optional depending on your goals. Here is what we use at MOBOTOYS and the purpose of each.

Dedicated Workroom - A room (or corner of a room) where the person grading can "set up shop". We use one of our Photo Studio tables repurposed as a grading space when needed.
Dedicated Workspace - Any large flat surface will do. This can be a dedicated "grading station desk" or a temporary work area at your dining room table. We only really need a place with a little elbow room to do our work and a plenty of space to set aside the items being graded. As noted above, we use our Photo Studio table. This table is adjustable to any working height ... we LOVE adjustable work surfaces and highly recommend one to anyone doing a lot of stationary work. We change vertical height position all the time so we obtained one using electric motors (more $$$), but a crank handle version works well also. We also like to use WHITE background photo paper ON and behind the table so 100% of our attention is on the item being graded. Use of paper is optional, it is already there for us to use so it is easy for us. A clean surface with a wall behind it is the same thing.
Bright Lighting - Natural light through a window always works in a pinch, but well-placed artificial light is your best friend here. Look at surface from multiple light source angles as sometimes finding flaws can be a hunt. Think about looking at a car from 20 feet away, it may look brand new, but if you look down the side you may see one or more shopping cart dings. When grading we are always on a scavenger hunt for the dings, flaws, and other unfortunates. Multiple light sources are good, anything from a flashlight to high powered overhead lights will work.
- Note: Light bulbs shine at different "color temperatures" (warm is more yellow, cold is more white). Try different color temperatures to find one you prefer (we like our lights more in the office white color range" when grading. There are reasonable priced LED desk lamps where you can change the color temp to what you like. We recommend this type for new graders so you can see the differences in light temp and pick what works best for you. We placed a few of the lights we have used in the photo to the left. We also cheat and use the photo studio lighting (also in upper right of photo) place in multiple locations to remove all shadows when inspecting (this is overkill, all you really need is one good light source, it just might take a little longer to inspect).
Eyes - While true some grading could be done by touch, it is 99% a visual sport. Light is important but how the light gets to your eyes is equally important. Even if you have 20/20 vision, sometimes magnification helps speed the examination along. If you don't have 20/20 vision then do you best to correct it as much as possible. Add to your inspection arsenal visual enhancement tools that best supplement your needs. This could be a simple as holding it close to your eye, bringing in cheap magnifiers, taking high resolution photos and zooming in (we have found several flaws we overlooked doing this, but remember when viewing high resolution photos at a micro level the world is NEVER perfect so be careful trying to grade from photos.
Hands - Grading requires full inspection of all surfaces which means the item must be handled. Always wear some type of gloves when inspecting collectibles. This is good for keeping the icky stuff off your hands if grading a garage sale item, but more importantly keeping your icky skin oils off the collectible item that is in Near Mint condition. Grading an Item should never alter the condition of the item in any way. We prefer disposable white cotton gloves, but any thin glove that allows you to safely handle the item being inspected will work.
Batteries - Always use NEW batteries or check the voltage and ensure they are still providing a minimum of 1.45V (1.5V is new) - Battery voltage testers are less than $10. Any battery with LESS voltage can and will affect operation of battery operated toys. This has happened more that once when a "broken toy" was sent back to the restoration-shop but it was just "broken batteries", where the batteries were just too low on power (under 1.4v) to fully power the toy. Don't be like us, ALWAYS try new batteries before you pull the "stop the bus" cord because of dead batteries.
Pen and Paper - While it is up to the grader WHERE to record the grading scores (e.g. Online cloud database, excel file, paper logbook, post-it-note, etc), it is important to always take good notes of special conditions during grading. These are important to supplement the numerical score when the grading factors may not be obvious (for example, hidden damage under clothing should be noted). We find very short phrases are usually "good enough". For example, we may say "several medium scratches" as a note against the "paint" characteristic grade. We don't say where the scratches are or how many, but we now now the assigned grade was primarily assigned because of "several medium scratches". Just a popcorn trail back to the why it was given a certain number score is the goal.
- NOTE on NOTES: Value comes into play here. When grading a ~$100 item, the above general note on scratching is fine, but if grading a $100,000 item, the notes would say EXACTLY where and how big the scratches are, likely with pictures of each. Reasonable thinking is your judge here for level of details in your notes.
OPTIONAL - Measuring Tools - Taking measurement specifications is NOT REQUIRED to grade an item. The process of grading is however the perfect time to obtain these specifications and record them to add to the digital historical records. The tools needed are simple:
- Ruler or measuring tape. We prefer the ruler found on cheap carpentry levels. The reason is the large VERTICAL surface area makes it easy to find the edge of the item (not everything is square). We use multiple rulers so we can find the first edge with one, then use that to butt a second ruler up against at 90 degrees, then using a 3rd ruler to find the opposite edge and take the measurement where it hits the second ruler (see exhibit "box" pictures for example). There are also nice 3D measuring tools for sale online with a measuring grid base and a vertical device for height. We have never used one, but they look like they should work well also.
- Scale - for weight, we use a digital scale and record weight in both grams and pounds-ounces.

When a collectible is being graded for a fee, such is the case with certified graders, the timing of the grading is typically just PRIOR TO SALE, the closer the better. From that point on the Grade certificate goes with the item as part of the item's heritage. After (some) period of time, a re-grading is typically necessary to take into consideration any new flaws or aging issues.

When a collectible is being processed into a private collection, or into a storefront, or into a museum, the collectible should be graded UPON RECEIPT. This is done to 1. verify the sellers condition description, 2. verify there was no shipping damage, and 3. record received condition for insurance valuation purposes of "as received" condition.

See MOBOTOYS Book of Grading - Part 2, The Numbers

Chapter 6 - Categories and Characteristics

In Part 1 of this book we introduced the concept of characteristics. As we learned in the class breakdown exercise each group of item (collectables) share some common traits (characteristics). While many characteristics are common across collections and it is theoretically possible a toy could need all characteristics to fully grade, but these are uncommon. On average, only 6 or 7 characteristics need to be graded for any given toy.

The table below applies the characteristics we use in grading Battery Operated toys against the types of toys in the collection. This information is for GENERAL considerations only as each toy will dictate what attributes, but most toys of a certain type will follow this pattern.

8 - ALL toys must include GENERAL grade assessment.

9 - While most vintage toys have some metal that must be graded, there are some plush character toys that only use metal under the fabric and fur (think BO plush doll). Grading here is optional.

10 - While most vintage toys have some paint that must be graded, there are some plush toys with no exposed metal and therefore there is no paint.

11 - While it is possible a metal toy has no plastic or rubber parts, a majority of toys have at least a few pieces made of these remarkable materials.

12 - Boats have wheels? Yes, sometimes they do (land use) sometimes they don't (water use). Some Robots actually walk without wheels, but many do have rollers/wheels under their feet that should be graded here.

13 - Fabric / Fur are really optional for ALL toys, but MOST of the time this grade is only needed on Character / Plush toys

14 - Without a battery box, it can't be a Battery-Operated toy ... this one applies to all.

15 - ALL toys may have a remote control. This is scored even if the remote is missing (score of 1?) although we typically do not grade toys missing major components like the remote.

16 - ALL toys may have a box (original or reproduction). Only use this if the box is correct for the toy.