Liquidation Sales

Everyone knows that retail businesses are closing all about us. As the economy brings itself back into balance, many of the national retail chain stores that had grown in affluence during the past 15 years are finding that the previous over zealous economic growth is no longer able to sustain them. So hence the liquidation of these stores as they fall away from the economy as a supplier, collapsing into our shopping past, no longer viable as businesses of profit.

However, before you traipse down to the most recent of the downfall stores to obtain your “great buy”, it should be noted that it is “buyer beware” sign that consumers should be aware of.

When a store is closing it is important to note that liquidation specialists are hired to complete the task.  These specialist companies are hired by courts or shareholders to clear all inventory at the best price obtainable. In the easiest of terms, what may seem like a great buy because of the notation on the item in the store that is being liquidated it may appear that it is a good or even a great purchase.

For instance, in the first week that Circuit City announced its closing of its stores nationwide, flocks of consumers descended upon the stores seeking out those store closing deals. Only to find that many of the items that were “reduced” were only elevated in their price and then supposedly reduced with up to 30% savings of the original retail price.  One such item was the HP all in one wireless printer. The supposedly great price after reduction was $139.00, that very same week at a competitors store, that same unit was priced at on sale $124.00. Another item that was noted was a wireless router supposedly again reflecting a 30% discount was a Linksys Router N, at $79.00 with discount, was indeed again higher than the competitors regular price by $15.00. 

Now that is not to say that there are not some good buys, even remarkable during a liquidation sale, a reflection of the times we now live, however, before you rush in to get your great savings, there are a few tips to keep in mind before you buy.

1. Don’t go to a liquidation sale without first knowing what you are looking to purchase - spontaneous buying is cultivated with the atmosphere of the store and amount of shoppers. Creating a desire to purchase and snag your deal, before all of the “great deal” are gone.
2. Know the price range of the items that you are looking to purchase. By being an informed consumer, having done the research of the item that you are searching you will less likely be caught up in the buying frenzy that  permeates liquidation sales.
3. REMEMBER ALL SALES ARE FINAL - If you find that the item you purchased is not in working order you are stuck with the product until you are able to return it to the manufacturer for repair. It is especially important to note that electronic purchases are expensive even during a liquidation sale, so knowing that the item functions properly is very important. Don’t assume it works because of the packaging appears unopened.
4. NO CREDIT CARDS - Many times store credit cards and major credit cards are not taken during a liquidation sale as the guarantee (ensuring that your purchase is covered in the event of a defect) that generally is associated with most major credit cards could not be enforced as the store will soon be closed permanently.
5. If you find an item that you cannot live without, and the savings is substantial, be sure to first ask yourself as you will stand in a very long checkout line, that you truly need or want the item before you commit to purchase.

Understanding the pros and cons of the liquidation sales will keep you from experiencing buyers’ remorse after you have gotten home with your purchase. There are some good deals available, however know your limits. Don’t be enticed into buying what you don’t need. Liquidators are paid very well to get you the consumer to spend more than the actual value of items are normally or even on sale, that is why they hired to liquidate stores to get the best dollar for the company that is in receivership.

After all of the cons are now before you, there is good news. Know what item(s) that you would like to buy, know the price range, be wise with your finances, and you will find the  very best deal for yourself. Good hunting!

Written by

Kaycee Marlett

www.inmyalley.com

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