Two Reasons Why You Should Skip Liquidation Sales

Recently consumer electronics giant Circuit City announced it was not going to be able to stay open and that they had hired extra help to liquidate their inventory. Many other retailers are going to be doing this in 2009, as the economy is continuing its freefall and consumers are just not spending like they once did. But with a liquidation sale comes a great opportunity to save big bucks on something you've wanted for a while right? Not exactly. There are several reasons why you may not want to get caught up in the "sales fever" of a liquidation sale. But two in particular stick out and tell you to just plain skip it.

First and foremost a liquidation sale is usually nothing more than a ploy to get consumers through the doors. When a company is being "liquidated" the liquidation sale can last for several months. Knowing this the retailer that is advertising their liquidation sale will more than likely jack up prices before the sale starts and then give some mundane discount like ten to fifteen percent. Problem is the item gets jacked so high that even with the discount you are paying more than you would have before the sale started. According to many online rants at a discussion board on yahoo.com this was the case with Circuit City. Retailers count on the stores being packed and buyer getting caught up in the moment with sales fever and not knowing any better. It won't be until the last weeks of operation that you will see the 85% off sales you think are going to go the entire time. And by the time the big discounts come, the retailer is left with things nobody wanted in the first place (source: news.yahoo.com).

Second, once you buy something in a liquidation sale you are stuck with it. If you buy a big ticket item, like a plasma television for example, and something goes wrong with it good luck getting help from a store that no longer exists. Now you can more than likely deal with the manufacturer, but that can be tedious and there is no local place you can take the item to. You will also be stuck with whatever warranty the manufacturer gives so make sure to read the warranty information before you buy the item. Because the store is going out of business they will more than likely not offer an extended or store warranty (source: news.yahoo.com). Even if they do how are you going to use it if they aren't there?

If you insist on catching the sales fever and buying your big ticket item at a liquidation sale make sure you purchase it with a credit card (if you can as some stores will not allow credit card purchases towards the end) so that you have some extra layer of protection. You can also protect yourself by avoiding the mind games that retailers play by simply doing your homework. If you know what you want to get, go online and check out the competition. That way you know going in if the liquidation sale price is a bargain. Remember, the retailers are counting on you to get the "sales fever" and not be prepared so beat them at their own game. It's your money so make sure you spend it wisely.