Lion's Daily Blurb - Monday, Jan. 19

[Lion]

As I mentioned in my weekend blurb, Circuit City here in the USA is shutting down all of their over 500 stores, and liquidation sales started on Saturday. My local Circuit City was jammed packed with customers hoping to take advantage of a good deal, but there actually wasn't too many to be found. Seems our local newspaper made an error when they reported in Saturday's edition that the store would be offering 30% off ALL merchandise. That's what brought out the vultures ready to feed on the carcass of a dead company. I was one of those birds...lol. Anyhoot, they were actually giving 10% off most items, and some up to 30% like cables, a few TVs, etc. Nothing really to write home about. Although the store was swarming with peeps, most were just browsing and no doubt disappointed that prices seemed a little high for a liquidation sale. I think they started by marking up prices, then tacking on a 10% discount. Folks were walking out of the store empty handed. I can see why Circuit City failed. They don't even know how to liquidate correctly. In fact, they had better prices during the Christmas shopping season. I'm sure in the first few days and weeks of liquidation they're trying to lure in the suckers who THINK they're getting a bargain. Problem is, they'll get the sales, and come February and March when they reduce prices to 50% off, the only thing that will be left is the junk.

[Derek]

No, they're doing a liquidation right. Start with small discounts, and slower lower it until everything is sold off. If you were to immediately start with everything 30% off you'ld be giving away a lot of stuff that would have sold for much more.

As a shopper, if you want to take advantage of this then its a lot like an auction in reverse: You want to wait until prices are lower, but if you wait too long someone else will beat you to it. When they get to the point of 50% and up off you will be able to get some great deals, but very little will be left (and most of it will be stuff no one is very much interested it).

On the topic of going-out-of-business sales though, back during Christmas Break the Linens-N-Things in my area was going out of business, and they were selling everything. Everything. My mom bought a handcart (the kind they would use for unloading trucks and restocking shelves), and they were even selling the shelves and wall panels where they hang stuff.

[berlin88]

Circuit City does not dictate the prices, the company doing the liquidating does. If the liquidator wants to sell for 10% off they can do it, and Circuit City doesn't get a choice. They have liquidators that were sent to every single store, and its up ot the ondividual liquidating managers to set prices and clear out whats left.

My brother got Rainbow Six Vegas 2 and the Bourne Ultimatum for a good deal.

They are not going to get 100% return on very item, hence the discount. However, its the job of the liquidators to get as much money as possible from the sales. Selling something just to get rid of it is a last resort. Selling for $30 when you could get $40 is not a good practice and would no doubt cause legal issues. The liqidator is morally and legally obligated to try and maximize the sales revenue.