Circuit City Liquidates--What to Know before You Go

So after 60 years, Circuit City is going out of business. It will lay off 30,000 of its 34,000 workforce (the Canadian business will remain). And it is liquidating. To those who were Circuit City associates, I hope you are able to find work soon.

When a company liquidates, it simply does whatever it can to eliminate all of its in-store and warehouse inventory off its books in exchange for cash. Not only does it do this by reducing prices* for customers and bringing in outside help (liquidators) to develop inventory, placement, and exit-pricing strategies, but other wholesalers come in and try to buy up whatever they can.


*However, just because a store is under liquidation doesn't mean that you're about to get great pricing.

As a matter of fact, I stopped by CC last weekend (on the 16th) and went over to the gaming section to be bombarded with an almost sarcastically large amount of Guitar Hero III game packs priced at a 39.99 clearance price with an additional 10% off markdown at register. Guitar controllers sold for 19.99. I waited. Today (the 22nd) 6 days later, I was a bit shocked to find the prices jacked back up--on the same inventory--to $55, with a 20% markdown. So even liquidators find ways to be slick.

So if you plan to drop in, CNN Money has a few tips you should watch for when entering the store:

First of all, you may find better prices online or at other retailers. Keep in mind that liquidators can raise prices that the original retailer already set. They can also get rid of any of any previously scheduled sales.

In fact, since ads that scream "going out of business" just attract consumers who assume they're getting a good deal, there is little incentive to actually give those big discounts…(Emphasis mine)

Yes, a going out of business sale where prices are actually raised. So generally these sales go on over the course of a few months, so you'll have some time to compare the "liquidation price" online. And don't bother going to the circuit city website. It's gone. You should (as I do with most electronics, games, books, etc.) consider looking at http://froogle.google.com and Amazon and comparison shop.

You may also want to give it some time. Circuit City's liquidation will continue through the next few weeks, and the longer it takes to empty the store, the cheaper the products will become. It may allow you the perfect opportunity to get some good stuff for a decent price.

Really?!

I hope this is just a blip on the screen:

After nearly a year of flagging sales, low gas prices and fat incentives are reigniting America's taste for big vehicles.

Trucks and SUVs will outsell cars in December, according to researchers at the automotive Website Edmunds.com, something that hasn't happened since February.

Meanwhile, the forecast finds that sales of hybrid vehicles are expected to be way down.

You know, I have no qualms about people's buying decisions; but when prices go back up again by say, oh..this summer, people will be screaming again. Let's hope for the average American consumer budget's sake that we still have the fortitude to make tough decisions. We're going have to make tough decisions in the 2009. Gas is cheap(er), but perhaps its not the time to pick up old habits again?