Liquidation sales don't always offer the best price

Liquidation sales don't always offer the best price

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Story Published: Nov 12, 2008 at 7:27 PM PDT

Story Updated: Nov 21, 2008 at 5:36 AM PDT

By Connie Thompson

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Liquidations sales are underway at 155 Circuit City stores across the country, including one store in Federal Way. The sales started a week ago after Circuit City filed for bankruptcy.

But just how big are those discounts? Is it worth the trip?

A lot of people think liquidation means deep discounts right away. But that's not the way it works.

The Circuit City liquidation is being handled by a company called Hilco Merchant Resources.

Hilco gets a special fee and shares the profits, so they want to move merchandise for the best possible price.

In most cases, the discounts you see start low and increase over time.

Some discounts are based on the manufacturer's list price, so you may find equal or better deals at the competition. And some items that were on sale before the liquidation are returned back up to their regular price, and then marked down.

Before you hit the Circuit City sale or any liquidation sale, go online and compare prices. See what's offered on the retailer online store and make note of the prices, including shipping. While you're at it, check competitor's prices for the same items.

So far, Circuit City liquidation shoppers report finding the best discounts on DVDs and furniture items, with TVs and other electronics still comparable or to other stores.

If you do hit the sale, inspect every item carefully before you buy and make sure it works with no defects.

Take cash or credit cards with you because the liquidator will not accept personal checks. There are no deliveries on liquidation sale items and all sales are final. Liquidations sales have a no-return policy.

A spokesman for Hilco tells me if a product you buy at liquidation breaks down or has defects, the manufacturers warranty is still good, but you have to go deal directly with the manufacturer.

Finally, if you have a circuit city gift card, use it now.

The bankruptcy court will decide the future of the gift cards and there's no guarantee they'll always get full value.

Keep in mind, filing for bankruptcy does not mean Circuit City is going out of business. At this point, more than 500 stores are still open.

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