First, here's a report from Cincinnati's WCPO:
We Compare Prices
* A Samsung 46 inch LCD TV, Model #LN46A850: Originally $2,599, now on sale for $2,339...but we found the exact model on Best Buy's website for $2,099....$300 less.
* A Vizio 42 inch LCD TV, Model #SV420XVT1A: Was $1,199, now marked down to $1,079...but we found the same model number TV at Target for just $1,029... $50 less.
* And a Panasonic 50 inch LCD TV, Model #TH-50P80U: Was $1,399, now $1,259...but both Amazon.com and Beach Camera had it for less than $1,000, a at least $300 less, and at Beach you even get free shipping!One of the companies running the sale defends the prices....telling the Los Angeles Times "we have commitments to banks and creditors who are expecting a certain return."
But you're not committed to shop at these prices...especially since all sales are final, with no returns.
And from Tennessee, an interview with a woman who went to Circuit City looking for Wii games — only to find out "we got up here and it's higher than it is at the normal stores."
TheStreet.com has compiled a list of reasons to avoid liquidation sales entirely, not least of which is that the sale prices are crap:
In fact, most liquidators will actually raise prices to full retail or a token 10% off because they know the store will be packed with people. That means prices at liquidation sales are often higher than you could have gotten at the store before it went into bankruptcy. Those "75% off or more" discounts that you are imagining won't arrive until the final week of the liquidation sale — a time when anything you would really want will already be long gone.
For those of you looking for some additional analysis of the economics of liquidation, check out this article from Portfolio:
The fact is that liquidations tend to be pretty bad places to find a bargain. It's worth remembering that a liquidation isn't the kind of sale put on by a store which needs to clear out their shelves in order to make space for new merchandise: there's no new high-margin merchandise coming in for shoppers to buy, and so the opportunity cost of keeping the old merchandise on the shelves is actually very low. Circuit City stores are going to be open through March: there's little point in having them simply sit there empty thanks to too-big early discounts.
The LA Times has some interviews with pissed off shoppers who wanted bigger discounts:
"I've been waiting in line for half an hour each day based on employees' promises that prices could come down, but they haven't," said McGinness, a TV commercial producer from Los Angeles. "It's very disappointing."
Big Sales Don’t always mean the Best Deals [TriCities]
Circuit City Closing Sale: Undercover Investigation [WCPO]
5 Reasons to Avoid Liquidation Sales [TheStreet]
The Economics of Liquidation [Portfolio]
Price is not right for many shoppers at Circuit City closeout sale [LA Times]
(Photo:Matt McGee)
On the side, how long do you think it took her to get up there?
]]>@mbz32190: And here I usedta think (before I discovered this site) that all those businesses that went under bought their liquidation signs from the same supplier. ;)
]]>The local ABC station was interviewing some guy when I was on my way out of a nearby Circuit City (on the off chance they'd have a laptop bag to my liking... spoiler: they didn't). It was all I could do to bite my tongue and not blurt out how the liquidator must've appointed the Jack 'em Up Kid to set the prices.
Maybe I should've run by behind the interviewee and yelled out CONSUMERIST DOT COM WHOOOOOOOO?
]]>I have a 10 dollar gift card and I'm terrified to go in to the store. Figure I can pick up some batteries or bottles of soda. Is it bad of me to just waste that money and not go?
]]>I stopped in this weekend...they had basically nothing...I looked at cds, movies...I could get movies cheaper at Best Buy. Also the store staff were incredibly unhelpful...
]]>@Christine Walsh: that was my first thought too!!
idiots.
]]>Yeah well get that return without deceiving, ripping people off, and wasting their time by going to your stores to find out there actually is no sale to get those returns.
]]>At least it was all still on sale for minimum 25% off...
]]>Are you kidding me? Coincidentally, I just got a Samsung 46" LCDTV (albeit a different model #, but really, how different can it be?) for $1099 Canadian at Future Shop online.
]]>@Raekwon: when i lived in new jersey, a few local stores would have "going out for business" sales quite often. complete with big orange and red signs...i guess they hoped no one would notice they said "going out FOR business" instead of "going out OF business."
]]>I once got a Swingline electric stapler (reg $70) for $12 and several cases of white-out for 1 cent a bottle at a going out of business sale.
The weird part: it was at Office Depot. When they pulled out of Columbus they said the were going out of business. Not sure who handled the sale.
]]>I can't imagine trying to get manufacturers warranty coverage on anything with a receipt from a liquidation sale... those receipts have stuff like 'all sales final' on them as well. It would be embarrassing as well if you had to contact them regarding a TV you just bought at a liquidation sale that did not work when you got it home...
]]>Because liquidations are usually handled by one of 3 main companies (and others)...and they all use similar signs.
]]>@Lynn12: One exception: When Tower Records was being liquidated a few years back, the prices (as expected) shot up something like 60% with a "10% discount" applied.
But by the final two weeks, the prices on remaining merchandise were down to 80% and 90% off. And while there wasn't a damned thing worth grabbing in the Pop/Rock or DVD sections, the upper floor of the downtown Chicago store still had a nice selection of jazz and classical discs that actually were a great deal.
But again, exception.
]]>* A Vizio 42 inch LCD TV, Model #SV420XVT1A: Was $1,199, now marked down to $1,079...but we found the same model number TV at Target for just $1,029... $50 less.
i actually just bought that last week at costco for $999.99
]]>@Christine Walsh:
DUMBASS
Personally, when I see those signs, I leave. Huge red flag.
]]>I took this picture on Monday of the Panasonic Lumix TZ5 at $329.99. After the storewide 10% off the final price would have been $297. What a deal!
The only problem is that I bought this exact same camera brand new for $239.94 in November. Months before they announced they were completely going out of business. But that's why they're completely going out of business. I didn't even think to shop for my camera at Circuit City because their prices were always outrageous.
And their receipts were 9 feet long by 6 inches wide.
]]>There is nothing in that store that I need.
And reading of these liquidation scams is just mind boggling. I wonder when America lost all its business ethics?
Depressing.
Ripping people off or misleading advertising, especially in this horrible economy is so wrong but in many ways is also so American. Sad.
]]>@Raekwon:
That is illegal in most states. Your state AG would probably love to hear about stores like that.
]]>@Raekwon: There's a local furniture store in my town that has a "going out of business" sale about twice a year. It definetely brings in the crowds and seems to help business.
]]>it was 80% off which probably gave me a 10% discount from msrp
]]>I went to the CC in Lake Worth, Texas 2 weeks ago. Granted, this was before the liquidation announcement, but I think it's pretty indicative. I was looking for a wireless ethernet adapter for my Xbox 360. CC had the adapter marked "Clearance" at $99... which is the MSRP. Needless to say, I walked away shaking my head, no purchase in hand.
]]>To sum it up: Liquidators are marketing geniuses and they make a lot of money doing it.
]]>50 inch Panasonic LCD? Are you sure? Panasonic doesn't manufacture LCDs above 37 inches last time I checked... The TH50PX50 or TH50PZ50 is a plasma, fyi.
]]>Edit button in the works? Maybe the Consumer Reports overlords will spring for it!
]]>That 42" Vizio LCD is not a good deal at all, we picked up a 47" x-mas of 07 for about $900. (including taxes)
I've never actually found a good deal at a liquidation sale. Any product worth buying is gone long before the price falls to a "deal" price & what's left when the prices do come down is usually the garbage no one wants anyway.
]]>I try to tell people that liquidation sales are a waste of time and they won't save any money, but they vigorously try to argue me down. I then know they are idiots and stop talking.
]]>Needless to say they never went out of business, they only used that gimmick to make sales.
]]>I have learned my lesson that one only goes to liquidation sales when one happens to be passing by. It isn't worth the gas for a special trip.
]]>Fool me all week, then you are lucky to know how to count to ten.
]]>Then go online and get the same merch for less with free shipping most of the time!!!
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