Going out of business sales quite often are no bargain!
By dragon54u
@dragon54u (31633)
United States
January 23, 2009 9:31am CST
When a store goes out of business it hires a liquidator to clear out the inventory. These liquidators often bring merchandise in and put price stickers on them at full price then mark them down so you think you're getting a bargain. You might see an item that retails for $20 that they've marked down to $10 and you think it's a good deal. Wrong! They got it for $3 and it's not even something the store previously carried!
The inventory that the store really carries was sold to the liquidators for half price maybe. The liquidators then leave the sticker on and mark it down to 25% off, still making 25% on that item.
The only time you'll find a real bargain is the last two weeks of the sale. That's what I've heard on Clark Howard's radio show and website. He has lots of advice on this type of thing, just put a dot com behind his name, it's a wonderful website if you like to save money.
5 people like this
11 responses
@coffeebreak (17797)
• United States
23 Jan 09
The signs might bring me into the store, but the price tag is still the deciding factor to me. "how much" on sale isn't the issue, it is "can I afford" that sale price. Doesn't matter how much it has been marked down, if it is out of my price range, it stays right there on the rack.
I often wonder if they don't mark stuff up really high on the tag so that they can say "50% off" nad then it gets marked down to an "affordable" price and with that sale going on, people buy it thinking they got a bargain... when they didn't... the tag was just hyked up in the first place!!! Kohl's is really odd like this. When they first opened, they had great sales as the tag said a reasonable price, and then the discount off that.
But now, that "regular price" is so high, then they mark it down 50% and that sale price is still out of my budget and it didn't used to be that way.
I dont' even bother with the sales at some stores - they need to mark down, their marked down, mark downs before I can even consider it!
Then again, my daughter found a bargain - a $249 coat marked down (yes it was on the Black Friday day so that helped) and she got it for $49 after all the discounts. SO bottome line, you shop price tag, not item, I guess!
1 person likes this

@coffeebreak (17797)
• United States
23 Jan 09
You noticed that too? I was shopping for a coat this year... didn't have one but this one 25 year old stupid one. But I have looked and looked and like you say, all them make for women is "fashionable", Light weight, cutesy, etc styles. Never a warm one in the bunch!!! I am in California, so I figure that might be why, but still... it does get cold and we do need a coat from time to time and since we can go to the cold mountains that are only 1 hour away and there is snow on the ground...we still need warm coats!!!
1 person likes this
@dragon54u (31633)
• United States
23 Jan 09
I heard something on Clark Howard that I tried and found it to be true. I peeled back the "regular" price sticker that was above the "sale" sticker and found that they had jacked up the price of the item and the sale price was just a dollar less than the regular price! Needless to say, I left that store and rarely shop there.
Kudos to your daughter for a good buy! That's great, especially when coats are so expensive. I wound up buying a man's coat this winter-I had no winter coat!-because men's coats were twice and warm and half the price. They really rip off the women in these stores!
1 person likes this
@snowcat46 (2322)
• United States
23 Jan 09
Same here. I go by the price tag,not the 50% off. I always figured they jacked the price way up before doing so much off. Because I never noticed the prices being very low! Once in awhile I find a good one, but that depends on the store.
@LadyMarissa (12148)
• United States
23 Jan 09
That makes sense. A good number of years back I worked in a store for a guy who was stuck with a couple of items he wanted to get rid of. He didn't believe in sales as he was greedy. I kept telling him he should have a sale on those 2 items. He just wouldn't budge. He was complaining about those 2 items one day & I popped off that I had told him how to get rid of them was sorry he was too stubborn to even try it. In the course of my rant, I commented he could increase the price & put up a "SALE" sign & he'd get rid of them. He decided he was going to prove to me that I was wrong & told me to have my Sale. I increased the price by 50 cents & put up a sign saying "SALE" & listed the price. We weren't open 10 minutes before the first item sold. I repeated the process. About 15 minutes later, the second item was gone. After that he had a lot of sales when he wanted to get rid of something. It works!!!
1 person likes this
@dragon54u (31633)
• United States
23 Jan 09
Many of us see the word "sale" and think we're getting a bargain! That's the psychology used in these going out of business sales. I don't begrudge anyone a fair profit but I resent these strategies, especially when we are all watching our pennies.
1 person likes this
@LadyMarissa (12148)
• United States
23 Jan 09
I ONLY raised the price to prove to the owner that I could get rid of his product & that I WAS RIGHT!!! I was afraid he'd have a stroke if I lowered the price. After I proved my point to him, he started having regular sales...at a lower price as he should have. YES, we are conditioned to see the word "Sale" & to get all excited thinking we are getting something special!!! Doesn't always mean it is a bargain!!!
@Sissygrl (10909)
• Canada
24 Jan 09
i know what you mean... but then again, if you wait till the last two weeks.. then there is rarely anything else in the store worth buying nayways! lol its all crap to begin with so after a few months of going out of busniness.. there isn't much left to choose from!
@dragon54u (31633)
• United States
24 Jan 09
That's true but the people who bought all that stuff probably paid way too much for it! A $500 tv only costs the store about $250 so if you pay more than $300 for it, you didn't get a going out of business bargain.
I don't buy electronics anyway, I use them till they die and that takes an awfully long time!
@sid556 (30953)
• United States
24 Jan 09
I believe it. I was just in Circuit City the other day which has been bought out by liquidators. My daughter had a gift card and we were hoping she'd find a great buy. Nothing seemed to be much of a bargain at all. Thanks for the tip on the money saving website. I will definitely check it out.
1 person likes this
@dragon54u (31633)
• United States
24 Jan 09
You're very welcome! Clark has some great advice. He was a millionaire by the time he was in his mid-30's and his staff gives out free financial advice 9 hours a day. He truly wants to help people. He's written books but encourages people to buy them used or better yet, check them out from a library.
@izathewzia (5134)
• Philippines
24 Jan 09
It's the first time I've known about it. Thanks for the informations. Now i know that the next time I buy bargain items it should be the last two weeks to really buy in a very price. It is nice to know such buying tips.
1 person likes this
@dragon54u (31633)
• United States
24 Jan 09
Be sure to look underneath the sale sticker and if the regular price is higher, you're getting a true sale. But many times the base price is lower than the sale price and then you shouldn't buy the item!
@MdImranHossain (336)
• Bangladesh
29 Jan 09
I see I thought this type of businesses are only here at my country but now it is all over the world. My view bargain very very uncomfortable but here bargain is must if you go to fixed price shop you are going with risk. Very few honest sellers are selling a reasonable price. Thanks to share this good information.
1 person likes this
@dragon54u (31633)
• United States
29 Jan 09
A big chain, Circuit City, is going out of business right now and having a "sale". They aren't selling much because their prices are still so high! People are disgusted with them. Thanks for sharing about your country's shops!
@ronaldinu (12422)
• Malta
23 Jan 09
Thanks for the tip dragon54u. When I buy something usually I do some windowshopping by visiting various online stores before buying. Sometimes you are surprised in the descrpancies between various prices. The only problem when there is big sales for example in clothing warehouses, you ll find good clothes but not of your size.
1 person likes this
@dragon54u (31633)
• United States
24 Jan 09
That's a common problem with searching for a certain size. The manufacturers don't have standards on size, either. One brand might have a size 12 that fits someone while another brand's size 12 is too small on that same person and still another is too large.
@jillhill (37353)
• United States
23 Jan 09
I recently had that happen. I bought something on clearance thinking I was getting a good deal then when I got home I ripped off the sticker and underneath laid the truth. I don't usually go even after Christmas shopping until much later...seems that some of their bargains are like you said...not a real bargain!
1 person likes this
@dragon54u (31633)
• United States
23 Jan 09
I just told someone else how that happened to me! But I'd been warned of that tactic so I checked before I bought it and found the scam. You should have returned that item, that's a real insult. They think we're stupid.
@barehugs (8973)
• Canada
23 Jan 09
What gets me upset are the high-end stores that have a continual Sale. 70% off everything in the store. You go there looking for a buy, only to find everything 'on sale' is still outrageously over priced. Another trick is the,'buy one get another for half price'!It doesn't take a rocket scientist to figure this one. Up the price a bit and presto, the stores makes money and sells twice as much. I refuse to go inside these stores, but I notice the parking lots are full. Whats this saying about the intelligence of the American Shopper?
1 person likes this
@dragon54u (31633)
• United States
24 Jan 09
See, the retailers know that Americans are programmed to salivate at the word "sale". Like Pavlov's dog, all they look for is the treat-the sale. Presto! they are rewarded.
I always look under the sale tags and 50% of the time I find they're trying to rip me off.
@snowy22315 (209221)
• United States
23 Jan 09
most of thsoe going out of business sales are not real bargains. They are run by professional liquidators and trying to maximize prices for the going out of business stores. I like to go to them, but not until the third or fourth week will you really start to see any bargains in my opinion.
1 person likes this
@dragon54u (31633)
• United States
23 Jan 09
The problem is that most of the suckers have already bought all the good stuff by that time. I thought I'd spread the word, so maybe there will be some of the good things left by the time we smart ones get there! 

@chocolatechilli (246)
• South Africa
23 Jan 09
There's an antique furniture store across the road from where I live that has had a going-out-of-business sale for over a year. Obviously, they were not that pressured to get done with it. I think liquidators do sometimes exploit bargain hunters. I have to say, though, recently a well-established art supply shop went out of business and got some amazing bargains, and ended up buying a few things I would never have been able to afford otherwise. Of course, I was very sad to see them close. If it's a shop that you buy from anyway, then sometimes a few bargains don't add up against the gap they'll leave.
1 person likes this
@dragon54u (31633)
• United States
24 Jan 09
The G-O-O-B sale is a favorite ploy. I was surprised this December when I saw people with signs proclaiming a GOOB sale at one of the mall retailers--it was the same one that had a GOOB sale last year!!
I'm always sorry to see the small shops go out of business. They are the backbone of our economy, the brave entrepreneurs who create jobs and support other businesses. I patronize them whenever I can.
I'm always sorry to see the small shops go out of business. They are the backbone of our economy, the brave entrepreneurs who create jobs and support other businesses. I patronize them whenever I can.








