Pros and cons of the bait and switch technique

Bait and switch advertising is a method of generating business traffic for the purpose of introducing new customers to additional products that may otherwise have gone unnoticed or have otherwise been promoted less. Some forms of bait and switch are legal whereas other forms are not. Knowing the difference between legal and illegal bit and switch advertising, in addition to realizing when to use the bait and switch selling technique and with which product, is essential to its effectiveness as an advertising tool.

Pros of bait and switch:

• Promotes customer satisfaction

Legitimate reasons for a switch include being sold out of sufficient stock, showing a customer something they might also be interested in, and replacing or upgrading a product or service. These reasons are ways to improve customer satisfaction and service because they exemplify the willingness of the business to assist the customer identify a suitable alternative. For example, if a customer sees an advertisement for a cell phone then goes into look at that phone, their intent may only be to investigate the product further because they're in the market for a new phone. Switching sales assistance to different cell phones may improve this particular customers' shopping experience and research.

• Increases market exposure

Even bait and switch advertising increases market exposure. If a bait and switch campaign is considered negative and a company quickly follows up with clearer advertising, the net affect may amount to greater advertising leverage than had a standard advertising methodology been consistently used. In other words, the advertising itself can be bait and switch, starting with one type of ad to gain customers' attention and another to build on that attention.

• Higher sales

Bait and switch advertising can boost sales forecasts and can also do so on a consistent basis if 1. The method used is legal and 2. The product and market suit the sales tactic. In other words, some markets and products work better with bait and switch advertising than others. For example, unique brands such as Coach purses may not be as easy to switch with other brands however the purses themselves may be switched provided they remain the Coach brand. The use of market research can be highly useful in determining if and when a bait and switch marketing campaign is the right choice for your business.

Cons of bait and switch:

• Constitutes false advertising

The Code of Federal Regulations defines bait advertising as meeting specific criteria. Bait and switch advertising should generally not meet these criteria in order to avoid potential negative litigation. In light of this, variations of the bait and switch that do actually intend to sell the bait product in addition to switched products are safer and more effective than a traditional bait and switch.

• Reduces brand perception

Loyal, or long-term customers with specific advertising expectations may not value bait and switch advertising at all. They may perceive it as a breach of trust and non-recognition of their value to the company as long time customers. When using the bait and switch with such customers, it may be more affective to adapt the technique to a soft-sell or more personalized approach where the bait and switch isn't quite so defined. Market research is helpful in identifying client demographics, and preferences which can be used in determining whether or not a bait and switch is the right promotional choice.

• Could lower long-term revenue

Depending on a business and its clientele, a bait and switch advertising campaign could turn out to be a complete disaster. This is evident in a Pennsylvania State University Study about the bait and switch search engine advertising. In the study, 'piggyback products' are offered or advertised alongside search results for brand specific queries with the affect of lessening the impact of the original advertisers goals and paid for advertising. This is an instance of third party advertising using bait and switch.  

Sources:

1. http://bit.ly/aUTmKb (Federal Trade Commission)
2. http://bit.ly/19FIs0 (County of Los Angeles)
3. http://bit.ly/b64fVc (Law Brain)
4. http://bit.ly/8YiZLb (Edmunds)
5. http://bit.ly/aOO92Q (Pennsylvania State University)

The Correlation Between Mortgage Rates and Home Sales

Low mortgage rates are thought to lead to higher sales numbers due to the economic theory of supply and demand. However, this relationship between mortgage rates and home sales numbers is not always as strong as some economists might think. This is made evident in a study by Christopher Mayer and R. Glenn Hubbard of the Columbia Business School whose findings indicate a more diverse set of influences on home sales.

CC BY 2.0 Attribution "Tasja"

In light of the above findings, the correlation between mortgage rates and home sales numbers involves understanding additional variables that can influence home sales. Examples of these factors include Federal Reserve Bank 'quantitative easing' policy, the business cycle of the mortgage industry, economic conditions and federal regulations. Despite all the additional variables that influence mortgage rates and home selling, the connection between mortgage rates and home sales is relatively strong when averaged out historically.

• Quantitative easing

Quantitative easing is a policy practiced by the U.S. Federal Reserve Bank when economic conditions warrant an increase in financial liquidity i.e. availability of funds for banks from the Federal Reserve. When the Federal Reserve Bank lowers its Federal Funds Rate, the affect tends to directly correlate with mortgage rates as the availability of money increases. Another program the Federal Reserve Bank implements is Permanent Open Market Operations (POMO). This program eases the financial strain on financial institutions that are connected to the mortgage industry via purchase of mortgage backed securities

• Statistical significance

The correlation between mortgage rates and home sales numbers is only valid when statistically significant. Moreover, quantitative easing only works under normal market conditions, and not necessarily when the economy is struggling in an exceptional recession, is in a secular trend, or during a housing market down cycle. For example, in an October 2006 document by James D. Hamilton, Economist at the University of California, San Diego, it is claimed the drops in the Fed funds rate leads to changes in mortgage rates that create increased home sales, albeit over time. However, two years later, throughout 2008, home sales declined despite historically low mortgage rates.

• Historical economic trends

The relationship between mortgage rates and home sales numbers is also evident in the economic history of the United States. Historically, when demand for mortgages drop, an indirect correlation also exits between mortgage rates and treasury yields as these financial instruments also decline during times of economic contraction. This pattern is evident in graphs of historical mortgage rates and 10 treasury yields plotted over a timeline. Moreover, the trendline reveals more often that not, that mortgage rates lower when 10 year treasury yields also decline indicating another relationship between government debt and mortgage rates. This is evident in this graph of Federal Reserve data presented by Mortgage and Refinancing Info.

• The U.S. housing market

After the severe decline in U.S. housing market valuation(s) in 2007, the prices of homes plummeted and a financial crisis ensued. As a result of the financial crisis, lenders saw a drop in demand for home loans which caused a corresponding drop in mortgage rates. When graphed, a clear pattern between home sales and mortgage rates emerges suggesting a drop in one may also lead to a decline in the other rather than a rise in home sales due to lower costs. In other words, lower mortgage rates may also have a non-inverse relationship with home sales when a housing market is in a strong enough downward cycle.

• Mortgage regulation

Mortgage regulation also impacts the correlation between mortgage rates and home sales numbers. Following the housing market bubble burst between 2007-2008, the financial services industry gained increased government scrutiny regarding lending practices. A result of this was tighter lending rules requiring larger down-payments, higher consumer credibility and consumer protection rules. One such example being the Dodd-Frank Wall Street and Reform and Consumer Protection Act of 2010. A potential financially adverse side affect of all these rules is an inhibition in the rate of lending despite their perceived benefit to the economy and consumers.

Sources:

1. http://bit.ly/bNMs3p (Federal Reserve Bank of Dallas)
2. http://bit.ly/d5NRSR (Hubbard, Columbia Business School)
3. http://bit.ly/bAjrMx (Bloomberg)
4. http://bit.ly/boXnJX (Hamilton UCSD)
5. http://bit.ly/cLrJH (Truth about mortgages)

Improve Sales Prospects By Avoiding These Sales Errors

If you want to close a sale your chances increase by avoiding common sales errors. Even if you have the best product and service around, and the best sales presentation to go along with it, sales errors can bust a sale before you realize what happened. Although some sales errors are more typical to sales neophytes than seasoned veterans, all sales people can learn new methods and improve their game.

Selling is an art and a process as well as the product or service being promoted. In order to equip yourself with the right sales tools for the job, setting aside the erroneous sales tools and techniques that don't get the job done can help improve your game and allow your inner sales person shine through. 7 of these sales errors are listed and illustrated below:

1. Picking the wrong product

There are plenty of products and services to sell and picking the wrong one can mean failure for a sales operation. A good product or service will 1. be in demand, 2. appeal to the people your promotion is aimed at, and 3. have a good record of making sales when the right sales methodology is used. Selling the right product is the first step to making decent sales.

2. Lack of knowledge

Not knowing about what your selling can really botch up a sale if your interested buyers rely on information to make their decisions. Not all products and services require the same amount of knowledge, but knowing about what you're selling is necessary to accurately and effectively portraying and presenting what you're selling as worthwhile.

3. Inhibited sales technique

Inhibition and self-doubt are terrible traits to have in sales. Customers and potential customers will see you as a reflection of your product which means being inhibited and doubtful can make them wonder 1) if the product or service is any good and 2) why you're not confident in the product or service. Believing in what you're selling is paramount to inspiring belief in others. The more of your own product you own, and the more people you know who also own the product or have used the service and are happy with it, the more likely those who haven't will be interested.

4. Being too slow

Giving a lead too much time to think can be a bad thing, rushing them isn't always good either. Knowing how much pressure to apply during a sale is vital to getting the sale completed and moving on to a new lead. This involves being able to 'read' your lead or apply a sales method that is productive and well liked by leads. Additionally, initiating contact and creating a pleasant sales atmosphere in which the client or potential client can feel comfortable learning about a product, is useful in allowing them to become interested.

5. Not knowing your lead

Your lead is your client regardless of if they buy or not; not knowing them is like selling oranges to an apple tree. Take the time to get to know your lead and understand exactly what you're looking for so you can save yourself and the lead time. Knowing about who you're selling to can also help you understand what sales techniques they're more likely to respond to. Some prefer emotional sales, whereas others prefer factual. Still more might expect you to meet certain levels of performance or a combination of all three.

6. Over selling

Over selling is a turn off, its easy to be enthusiastic and vigilant at presenting something, but over selling can come across as desperate, insensitive and aggressive. Even passive leads can recognize over selling when they see it. You want your lead to be interested in the product and not distracted by your personality. A friendly, honest, helpful and informative character can help build brand for your company and is often appreciated by leads and customers alike.

7. Poor negotiation and/or sales technique

Negotiating is a very important skill in some sales. Products or services that have negotiable prices and competitors require strong negotiation skills and innovative techniques. To put your product ahead of another involves helping your customer realize they need what they're buying, and why it is a good deal and beneficial to them. An array of information, technique, experience and know how is helpful in implementing and matching the right negotiation and technique with the right client.

Taxes on Internet Sales

Technically, the purchase of goods sold over the internet are taxable if the corporations the products are purchased from operate within the same state. Such sales tax is not prohibited by the Internet Tax Freedom Act that was extended by George W. Bush in November of 2007 for 7 years. Since companies are able to set up out of state operations to qualify them for non taxation privileges, these companies do not have to pay taxes on sales to buyers within other states.

While states may not be required to collect taxes on internet sales, consumers may still be responsible for paying and reporting such taxes in the event of same state/business purchases. Enforcement of this law has not taken a high priority in recent years therefore many consumers are either unaware or negligent of such tax responsibilities. Some companies voluntarily collect internet sales taxes however others don't due to lack of legal restrictions requiring them to do so.

The Internet tax freedom act

The Internet Tax Freedom Act includes the internet tax non-discrimination act. Specifically, this act bans the taxation of internet service but not selling via the internet. States that wish to collect sales tax from sales within their state may request the collection of sales tax however sellers are not currently required to collect the sales tax themselves. This may change in the future but as of the date of this article, no such legality exists. If purchases are made from an internet site that is located outside of one's state, only that state may collect taxes on sales.

Supreme court prohibition of Internet sales tax

A 1992 Supreme court case entitled "Quill v. North Dakota", essentially outlawed the charging of taxes buy corporations selling goods to buyers in other states. Moreover, if a company has no presence within the state of sale, the Supreme Court decision maintains that the state to which goods are shipped cannot tax the corporation making the sale. While this case pertained to a mail order business, the principal of inter-sales through businesses not operating in the state of delivery applies to e-commerce as well. Consequently, the charging of sales tax is not applicable for purchases made online from such companies.

The stream lines sales tax project and internet sales tax

In light of complex, outdated and new developments in e-commerce, a legislative movement has begun to stream line sales tax and includes the potential for internet sales in that effort. The stream line sales tax project is an interstate initiative that simplifies and standardizes taxation collection. The result of a more standardized, and reduced taxation system between states could then allow the federal government to pass tax legislation that enables interstate taxation that includes internet sales tax.

Internet sales tax on sales from outside the United States

Depending on the tax treaties with a foreign country, tax may or may not be required for sales of products purchased over the internet. However, ambiguity exists regarding location of internet operations and their jurisdiction of operation. For example, a company that is required to charge tax on sales made for delivery outside of the United States may have an offshore subsidiary through which it does business. If that offshore jurisdiction is not subject to internet sales tax, the charging of tax on international sales tax may be disputed.

Summary of Internet sales tax

As it stands at the moment, internet sales tax is not largely enforced due to the nature of internet commerce i.e. since it is often without state borders, compliance with State laws and tax policy is not always required in addition to a lack of laws requiring businesses within a state to collect sales taxes from internet purchases. The internet is growing industry and the potential loss of sales taxes increases each year which gives states all the more incentive to push for a more concrete internet sales tax.

The Stream lined sales tax project is one such effort and aims to expedite and abridge the tax collection process thereby justifying collection of internet taxes between states i.e. differences between states signing onto the agreement may create a unity of state taxation making federal legislation on the matter easier to pass through the legislative bodies of Government. As of yet, the U.S. senate has not passed a law allowing states to require collection of taxes by internet businesses, but that point may come in the future and as internet sales increase.

Sources:

1. http://www.usa-sales-use-tax-e-commerce.com/international_internet.asp
2. http://smallbusiness.findlaw.com/business-operations/internet/internet-taxes.html
3. http://www.newrules.org/retail/inttax2.html
4. http://tinyurl.com/47d26a2 (NOLO)
5. http://www.informationweek.com/news/showArticle.jhtml?articleID=202801131
6. http://salesandtransaction.thomson.com/pdf/Tresh%20Presentation2.pdf
7. https://www.sstregister.org/sellers/SellerFAQs.Aspx#faq1

Guide to Sales and Use Taxes

The difference between sales tax and use tax is that sales tax is charged at the time of sale whereas use tax is levied retroactively some time after the selling of a product. If purchases comprise a large part of personal income spent, sales and/or use tax could add an extra 5-7.3% to the total bill. This article will describe sales and use tax and provide examples of each and will then offer tips for saving and/or avoiding sales taxation.

Sales tax

Sales tax varies from State to State and some localities may charge additional taxes to raise money for municipal projects. Sales tax is also higher for some products than others. For example, several States have high sales taxes on cigarettes and beer. New Jersey and Rhode Island have the highest tax on cigarettes and $2.58 and $2.46 per pack respectively. California and New Jersey are among the highest taxed States in terms of Sales at 7.3% and 7% however some States with seemingly average sales tax rates such as Virginia also charge a 2% tax on food.

0% Sales tax states do exist, however the price of goods may be higher especially in those sales tax free States such as Delaware and New Hampshire, which are charged tax by the government on gross receipts prior to transactions at the retail level. (moneycentral.com) A list of the sales tax free states is below in addition to Colorado which has the lowest sales tax of the States that charge sales tax.

• Oregon
• Alaska
• Montana
• New Hampshire (Subject to pre-retail tax)
• Delaware (Subject to pre-retail tax)
• Colorado 2.9%

Use tax

Use tax is a type of tax administered by States when taxes that should have been paid by residents of that State are somehow avoided. (nolo.com) In some instances such as purchase of large equipment that needs to be registered and/or licensed, use tax can be levied fairly easily. However, in the case of voluntary use tax disclosure on items purchased out of State, the collection and reporting of the use tax becomes more haphazard. (wikipedia.com)

When use tax does apply to purchase made out of State, that use tax may be avoided by keeping the purchase item out of state in addition to registering the item out of State. In other words, for the use tax to not apply, the storage and registration of large equipment subject to use tax must be in the State in which no sales tax was originally charged. (oatax.com)

How to avoid sales tax

There are actually a few ways to not pay sales tax. Some of these methods may still be subject to tax if they are sold in a business context and if State and Federal taxation rules apply. However, there are ways to obtain products for free and/or minimize sales tax costs, some of which are listed below. Moreover, the following list illustrates that sales tax isn't absolute and usually applies to the most convenient method of sale which quite often is retail sales through licensed businesses with physical addresses at which transactions take place.

• Deduct sales tax on IRS Schedule A
• Barter through barter exchange networks
• Buy used through non-taxable venues
• Purchase through the Internet
• Attend private sales
• Take advantage of tax-free days and select sales tax only states
• Shop in sales tax free States
• Shop across State lines with lower taxes
• Have purchased products shipped to an out of state or international address

The more products that are purchased, and the higher the price of the item, the greater the incentive may be to consider options to sales taxation. When sales tax is successfully avoided by utilizing sales tax minimization techniques, a use tax may apply and be required by law. However, this is not always the case as with barter, residence within a sales tax free state, tax holidays etc.

In some cases, a municipal or county sales tax may also be assessed and added to the State sales tax rate if any. In such instances one will either discover this additional tax on a sales tax or through inquiry to the county or other source. In the case of large purchase for which a large amount of tax has been paid and when an individual or household itemizes income deductions, sales tax may be deductible.

Sources:

1. http://www.nolo.com/definition.cfm/Term/B3E6B054-CBDF-408E-9E607EA598A19240/alpha/U/
2. http://articles.moneycentral.msn.com/Taxes/Advice/TheBestAndWorstStatesForTaxes.aspx?page=2
3. http://moneysmartlife.com/how-to-avoid-paying-sales-tax/
4. http://www.ehow.com/how_2080714_shop-online-avoid-sales-tax.html
5. http://en.wikipedia.org/wiki/Use_tax
6. http://www.oatax.com/ar1112006.htm

Wash Sales and Worthless Stock

Wash sales are a term given to the repurchase of securities such as stocks within 30 days prior to and following the selling of securities at a capital loss i.e. at a price lower than the price purchased. 

Such sales may be implemented to avoid 'worthless' securities transactions despite the wash sale rule. The wash sale rule is implemented by the U.S. Internal Revenue Service that disallows tax benefits usually afforded to financial losses incurred through capital loss on investments.

The tax benefits lost due to a wash sale may be regained at a later time through a basis adjustment in which the loss on the sale of a financial instrument is added to the purchase price of the wash purchase. (www.fairmark.com) This is an important adjustment to note as overlooking it within a given tax year could lead to an over reporting of capital gains.

Calculating disadvantages of the wash sale rule

If the tax savings loss is greater than the potential capital gain incurred through an upward price movement following a wash sale, then the wash sale may not be profitable. In other words, for a wash sale to be financially prudent the repurchasing of securities should ideally lead to a profit greater than the tax savings incurred through a tax deduction on the loss of sale. To calculate the potential worth of a wash sale following specific steps may be helpful.

• Identify tax bracket

• Estimate adjusted gross income after the sale of securities

• Calculate tax savings using adjusted gross income estimate and tax bracket 

• Forecast potential capital gain on wash sale 

• Subtract estimated tax savings from forecasted capital gain

Securities affected and not affected by the wash sale rule

Wash sales do not apply to every exchange of securities within a 60 day period. In the case of certain financial instruments, the repurchase of securities either 30 days before or after a sale are not considered wash sales. Furthermore, according to the IRS, wash sales do not apply to the following items (www.irs.gov)

Financial Instruments not affected by the wash sale rule:

•Foreign exchange purchases and repurchases

•Futures contracts

•Non-equity options

•Dealer equity, or securities futures contracts

Financial Instruments affected by the wash sale rule:

• Purchase and sale of stocks through an individual retirement account (IRA)

• Sale of stocks through an options contract

• Purchase of similar types of securities ex-stocks of two similar oil companies

•Options contracts involving repurchase of the same stock

Wash sale tips

When entering into a wash sale a few considerations may be useful in one's financial management strategy. A few of those tips are provided below with the purpose of clarifying the potential benefits and disadvantages of wash sales.

• Time of year: If the wash sale takes place early in the fiscal year, the cost basis adjustment may offset the tax loss if a cost adjusted capital gain of equal proportion to the capital loss is incurred. Additionally, since wash sales only apply within a 60 time period, adjusting securities purchases outside of this time frame may be beneficial.

• Type of security: In the case FOREX and futures securities transactions the wash sale rule may not have an impact in which case such purchases and sales may have less tax implications

• Size of transaction: Depending on the size of the transaction the wash sale rule may incur relatively little or larger financial impact. For example, 1) a forgone capital loss that may have lowered tax filing bracket, 2) a large enough transaction in which the tax benefit loss is significant

• Investment & Tax strategy: Incorporating the potential for wash sales into one's investment and tax strategies can be useful in maximizing gains and minimizing losses. Considering the potential implications of purchases may lead to a more developed approach.

Summary

The wash sale rule is a part of the U.S. federal tax code and disallows tax benefits for the loss of various securities such as stocks and option contracts in the event an additional purchase of that or a similar security takes place within a 60 day time frame. Certain limitations exist for this rule including the 1) basis adjustment calculation and 2) purchase of securities not included in the wash sale rule. 

Calculating the potential loss from a wash sale involves the estimation of adjusted gross income, tax bracket, potential tax savings and capital gains and losses. Incorporating and understanding the rules of the wash sale into one's overall investment and tax strategy can be a useful in one's individual financial planning.

Sources:

1. http://www.irs.gov/publications/p3991/ch01.html
2. http://www.fairmark.com/capgain/wash/ws101.htm
3. http://www.irs.gov/pub/irs-pdf/p550.pdf

A Look at the Government's Effort to Boost Housing Market Transactions

The U.S. government has spent billions of dollars to boost housing transactions and promote real estate investing since the collapse of the housing market in 2008. The reasons being, the housing industry represents a large part of the U.S. economy, and by boosting the selling of homes economic sustainability and preservation of the housing industry is promoted. Among these government efforts to boost housing transactions are several large legislative acts that implement forms of housing assistance, tax credits, and mortgage industry financial aid.

• The Housing Economic Recovery Act of 2008

The Housing and Economic Recovery Act of 2008 was among the first major efforts to directly boost housing transactions and provide federal financial accommodation to the industry. Among other things, this law established the HOPE for Homeowners Program that was aimed at refinancing mortgages of distressed homeowners, and it also intended to help the mortgage market recover economically.

• Emergency Economic Stabilization Act of 2008

Within the Emergency Economic Stabilization Act of 2008 was the originating legislation for the Troubled Asset Relief Program (TARP) that was considered a bailout of banks whose solvency became challenged by the decline of investments in the housing market. By purchasing these assets from banks, the government in affect helped promote the sustainability of these banks and their capacity to continue housing transactions.

• The American Recovery and Reinvestment Act of 2009

According to the National Association of Realtors, the home buyer tax credit program was directed toward housing market assistance through the American Recovery and Reinvestment Act of 2009. This credit was a government effort to help boost housing transactions. To illustrate, by providing tax incentives that could either be deducted from down payments or increase earned income homeownership was theoretically made more affordable for more than had the credit not been implemented.

• Worker, Homeownership and Business Assistance Act of 2009

This Internal Revenue Service (IRS) claims the Worker, Homeownership and Business Assistance Act of 2009 extended the home buyer tax credit made possible by the American Recovery and Reinvestment Act. Although this tax credit expired in the spring of 2010, the affect is conjectured to have positively impacted home sales during the first quarter of 2010.

According to the Bureau of Economic Analysis, in 2009 the real estate industry accounted for 13 percent of the U.S. Economy. However, in terms of national consumer spending, the real estate industry accounts for a large part of consumer's incomes. For example, when consumers stop working via unemployment they spend less on their homes causing a decline in real estate market values.

The executive branch of the government has proposed that its efforts to assist the housing market have been effective. Citing lower mortgage rates, and the outpacing of mortgage aid from the rate of foreclosures, the White house is trying to demonstrate it has done something, however whether or not it was enough to prevent the housing market from collapsing further if not allow it to sustain itself may depend on the future success of programs such as the making home affordable program.

Sources:  

1. http://bit.ly/bto4dx (U.S. Department of Housing and Urban Development)
2. http://bit.ly/9tb63A (Bureau of Economic Analysis)
3. http://bit.ly/bto4dx (White House)
4. http://bit.ly/ExCdq (Internal Revenue Service)

Cheap Ways to Improve The Value of Flea Market Items

The cheap ways to improve the value of your flea market items are to use the methods that make them not seem like flea market items at all. For example, an old beat up doll house could be a priceless bargain with some new wallpaper and carpeting. A second step then makes use of marketing techniques that improve your chances of selling the item. Even if flea market items have been inexpensively increased in value, someone still has to buy it. The following tips provide cheap ways that not only help increase the value and salability of flea market items, but that also help with marketing the product.

• Transform the items

Flea market items can be transformed with the magic of sales which is cheap, it can even be free when you do it right. Selling item involves highlighting its value to a potential buyer which means you might have to speak to them, but that's free. Here's an example, “That's no junk you're looking at Sir, that's a very unique piece of history your looking at. See how it shines and has been restored with care, that increases its value, and if you like it enough you can even have it at a discount.” That's just the first line.

There are also other cheap ways to increase the value of flea market items. For example, restoration of a doll house; perhaps a screw is missing, or the paint has worn off, or a doll is missing a shoe. Screws are fairly inexpensive and the paint doesn't necessarily have to be re-done if it can be cleaned . In some cases even stripping the paint might make the doll house more appealing. Unless the doll's shoes are exceedingly important to the house, those can be replaced and maybe even a new dress would spruce up the doll house.

• Make it a deal

The next way to cheaply improve the value of flea market items is to make it a deal. That can be done by reducing the price of the newly valued and restored flea market item. So perhaps after restoring the doll house, the value increased by $5 and now costs $15, but that's a little to pricey for the buyers. So to make it a deal, keep the price on the tag and reduce it when someone shows interest, but not before. By making the doll house a deal, the chance of selling it is not only improved but develops an appreciation from the potential buyer.

• Identify potential buyers

After a way has been designed to make the flea market item a deal, a market either needs to be created or expanded. That means people who might be interested in the doll house should be found and told about this wonderfully restored quasi-antique piece of 20th century culture. If they're not interested in dolls or doll houses, they're probably the wrong people to be telling, so naturally finding places where people like that sort of thing, and then informing them, might be a good idea.

• Create a need

Maybe the doll house isn't that big of a deal. That's fine, is it unique? If not make it unique then it's like no other which increases its value and potential interest in the item. A collection of doll houses might not be complete without this particular one, or it would perfectly complement another doll house or set of dolls. Maybe someones daughter needs a gift or a surprise is in order. In other words, there are reasons to buy things, but unless they are revealed they might not be known. Revealing these needs is a cheap way to increase the marketability, and hence the value of a flea market item.

• Increase demand

A last cheap way to improve the value of a flea market item is to increase its demand. In economics, the principle that higher demand translates to higher cost is a widely held belief. To increase the demand do a little research before restoration to identify the most wanted style, color or features. Doll house stores, books, auction bids and local clubs may all provide insight into what buyers are looking for and what they are willing to pay. When the in demand features are identified and worked into the doll houses' redesign and marketing, the probability of selling the newly valued doll house improves turning flea market goods to boutique treasures.