Liquidation sale!

You've seen them, men and women standing on street corners holding signs that are as tall as they are, exclaiming: Going out of business! Liquidation sale! 50% off! During this current recession and down economy, more and more companies are going out of business. The most recent example that made local news in St. Louis was Circuit City. Shoppers scrambled to peruse the stores for "bargains". TV's and computers were "on sale"! Hey wait a minute! I thought we were in a recession? I thought thousands of people were losing their jobs? Who are all these people shopping at Circuit City? Mostly people who are behind on their bills, late on their credit card payments and over extended on their budgets. So why do they do it? The retail industry has done a very good job at "educating" people that they can "save money" by buying things on sale. While this may be true in principle, you have to take a closer look to see if these "sales" are really worth it to you and me. For example, when items are marked up 100% over cost, an item on sale at 30% off is still very profitable to the retailer. But more importantly to you, the consumer, you need to ask a couple very basic questions. Number one, do I need this item? If your TV went on the fritz and you need another one, great. Go get a new TV on sale. But if your TV still works, buying a new one that you didn't really need is not going to save you any money at all, even if it's on sale for 90% off. Number two, just because an item is on sale at one store, even a store that's going out of business like Circuit City, does not mean that you can't find a better deal somewhere else. Many times, you can find better deals at Sam's, Costco, Walmart, or other outlet stores by doing your homework and comparison shop. Another important thing to remember about stores going out of business. There are no warranties. Once you buy something at a store that is going out of business, it's yours! No returns allowed. Think about that before you plunk down 8 large for that new flat screen TV. One last question. Why do these liquidation sales last so long? I bet you know why. Sometimes being a smart shopper means not buying at all!