5 Reasons to avoid Liquidation sales!!- Budget101 Discussion List

I saw this article and thought that we should all be aware of the reasons NOT to go crazy on spending when we see SALE: Circuit City recently announced it had hired liquidators to sell off its inventory. While you might think this is a great time to find deals, the truth is that liquidation

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  1. #1
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    Default 5 Reasons to avoid Liquidation sales!!


    I saw this article and thought that we should all be aware of the reasons NOT to go crazy on spending when we see SALE:

    Circuit City recently announced it had hired liquidators to sell off its inventory. While you might think this is a great time to find deals, the truth is that liquidation sales offer few bargains. Keep these facts in mind before spending your hard-earned money.

    You don't need it: If you heard about a liquidation sale where a company is selling some type of gadget and now you find yourself wanting one, you did exactly what the liquidator wanted you to do. If you really wanted the gadget, it would have been on your list, after all.

    The first rule of smart shopping is that, if you don't need it, it's not a bargain no matter what the price. Liquidation sales are a good way to convince yourself that a want is within reach, and therefore a need.

    The prices aren't that good: When people hear the words "liquidation sale," they assume the main purpose is to get rid of merchandise quickly, meaning cheaply. While moving the inventory is one goal, it's not the primary goal. The main point is to make money.

    Since "liquidation sales" usually last several months -- Circuit City's will last till the end of March -- there is no incentive to slash prices from the outset. 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.

    If you still feel you must go to the liquidation sale because you are sure prices will be good, do your homework. Know the prices at area rivals and online. This way, you'll know what a good deal is.

    There are limited forms of payment: The way you can pay for merchandise at a liquidation sale can be limited. Checks, coupons and gift cards probably won't be accepted. You probably can't use credit cards in the final weeks, when large discounts come into play.

    All sales are final: Since the store is going out of business, sales are usually final. If you have trouble with that big-screen TV or gadget, the store isn't going to help you. Especially for expensive items, it may not be worth the risk if you are only saving a few dollars.

    If you do decide to buy at a liquidation sale, see that the item is in good working condition. Plug it in to make sure it works and open the box to be certain all the pieces are there. You need to take extra care since you won't be able to return it. Fully understand the return policies and any terms of the sale before you buy. If you can, use a credit card to get protections.


    There's no knowledgeable help: The goal of liquidators is to sell, not to help you decide which of several similar gadgets would best suit your needs. All staff will likely be working the cash registers, and any floor help may have little to no knowledge with technical questions. Basically, there will be no service of any kind, so unless you know exactly what you want, liquidation sales are not the place to try and find something.

    Good deals can usually be found at the end of a liquidation sale, but only on items that aren't in high demand. Don't be fooled into thinking that, just because a business is being sold through liquidation, it guarantees a good price. Liquidation sales carry a lot of disadvantages. Or better yet, skip the liquidation sales altogether and spend your money on things that are on your need list.


    I hope this is helpful to you all, it is for me
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

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  3. #2
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    Default Re: 5 Reasons to avoid Liquidation sales!!


    When my store was starting to close we got boxes full of clothes from other stores. The point was not to get rid of everything- it was just to bide time until we did close. Most of the stuff was actually from summer and we got no new items. That and sales fluctuate. Ours was for a time "everything 7.99" then it went up to "40% off everything".

    Even employees lost their percentage off items since all the items were considered to be at their lowest price possible.

    And returns can be so frustrating too, its like "we're closing sales are final" and customers will complain about how they got the wrong pair of earrings or something that won't affect them greatly.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    Wow Tarrien - its getting to be a scarey place out there!!!
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    Yeah, Jobs are definitely becoming much more scarce since all these big chains are going down. The good thing about this though is there will be a time when it all passes and either the chains will come back or we'll get new kinds of chains which sounds sorta interesting in my opinion.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    This is something I really have to look out for. Our hard earned cash should not be going for "expensive junk or clutter". It's so easy to buy just because it is on sale. The best thing I have found is to just avoid the stores or go without the money to spend. In the event that there is a real deal, we can then discuss it with DH and return for it, if its gone........well, good ridance!!!! That has helped us a lot.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    Excellent tip MsGee!!!!!
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    I went to a Linen's N Things liquidation sale. The prices really weren't worth the time. I did get a food processor though, I needed one. What was bad is that it was the "display" model and they were unwilling to drop the price anymore cause they said it was already rock bottom. Whatever! The "sale" price was only $30 less than the original price. I was tempted to buy some Yankee candles but the prices weren't low enough to get something I didn't really need!...lol

    We've been tempted to go to the Circuit City sale...DH really wants one of those flat screen TV's. Luckily, he keeps saying that we really don't need a new TV. Our plain old TV still works fine so what's the use?

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    And I just learned that the liquidation companies are the ones in control, not the company going out of business. A furniture store went out of business here and the liquidation co brought in furniture from another company that had closed and had stuff left that didn't sell. They are still trying to get the most money possible.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    Get this...DH told me about this last night regarding the Circuit City sale. DH somehow managed to talk to one of the salespersons dealing with the liquidation sale at Circuit City. They actually RAISED the prices then put the items on sale. People are actually paying MORE than if they bought it before the sale. Just goes to show that you should really shop around for the best prices and don't be fooled by the word sale. I don't know if this is true but since their main purpose is to make as much money as possible, it definately sounds like they would do something like this.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    Yah we noticed this when our store went down. Not only that keep in mind circuit city usually costs more than wall mart for the same items. Your paying for the specialty store brand. Even though they are selling other brand names they think you should pay them more just because they are circuit city. So now your paying maybe three times the actual item cost. Just have to love these stores. What greed.


    Quote Originally Posted by mmclean11 View Post
    Get this...DH told me about this last night regarding the Circuit City sale. DH somehow managed to talk to one of the salespersons dealing with the liquidation sale at Circuit City. They actually RAISED the prices then put the items on sale. People are actually paying MORE than if they bought it before the sale. Just goes to show that you should really shop around for the best prices and don't be fooled by the word sale. I don't know if this is true but since their main purpose is to make as much money as possible, it definately sounds like they would do something like this.

  12. #11
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    Default Re: 5 Reasons to avoid Liquidation sales!!


    I have to admit...I got The Areosmith Guitar hero (the game) for my kids and it was $9.00...I checked at Walmart and it was $55.00 ......They had four of them.....so I bought all four and gave them as gifts....Gave one to our kids and it worked great...the other kids we gave the others to...their parents said the games worked fine too I think for the most part you have to REALLY look for the deals...but I agree - they raise and then put on sale...you have to definetly watch out!!!
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    I'm one of those people that would've sold it back to a game shop for a little extra cash

  14. #13
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    Default Re: 5 Reasons to avoid Liquidation sales!!


    I saw something on tv the other day about these big sales that stores closing are having. That you really don't get a bargain after all. They don't even mark done that much to make a difference at all. Keep you money for more important things, or for a better buy some where else.
    Tonia

    Wisdom is doing now what you will be happy with later on.

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    I didnt thing about going to game stop and making money on it!! Thats ok, it was a great deal as a gift....the timing was good!!
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

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    Default Re: 5 Reasons to avoid Liquidation sales!!


    These are some very good ideas!!

 

 
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