03 Mar 2009

the truth about liquidations

So, against my better judgement, I stopped by Circuit City to see if there were any good deals. In case you want to stop reading right now, the answer is NO. So, what is the truth about liquidations? Lets say the retail price on a TV is $3000. Most places, like bestbuy, might sell it for $2500. Online (e.g. Amazon) might make it $2000.

What does circuit city sell it for during liquidation? Well, they started out offering 20% off, right? and then increased to 50%.

The problem is they first hike the price back to $3000, and then take 20% off. Which, leaves you at $2400. Still not a good deal. Certainly not as good at 20% might imply. It’s a scam, because the TV NEVER sold for $3000, but, as people fall for it, they do it.

But, what’s the biggest problem with all this? It’s gullible people.

The solution is obvious, right. If a good deal on the TV is anything below $2000, that would mean you’d have to wait until Circuit City offered 40%. The problem is, some schmuck will buy it when it’s 20%, so it’s a lose lose. By the time they have 40 or 50% off, the only stuff left is junk. I saw blu-rays going for $35 with 40% off. The problem is, Amazon sells them for $20 right now, without the scavenger hunt. Advice, buy everything online. Occasionally there will be a good deal in a Brick and Mortar store, but it’s rare.