Posted on 10/02/2018 in Sales

'Going Out of Business' Sales

'Going Out of Business' Sales

When anyone sees the sign or an advertisement that claims "Going out of Business Sale" suddenly he or she will think, "yes, I can get the best deals there". In theory these sales should in fact save you the most money possible, based simply on the chief idea that the store will no longer be in operation when the sale has ended. However this is not always the case and it therefore requires some vigilance on the part of any customer who is quickly moved to spend money at these sales. 

There are a couple factors to think about that can make these prices less likely to be worth it. Also in current times there has been an increase in the number of "going out of business sales" because of the recession that has not been good to many stores that have lost their vitality. Fortunately there has been some media coverage on this issue which has helped to uncover some of the less than decent activities that have occurred during these sales.

Factors that May Affect Liquidation Sales

The largest factor that leads to less substantial benefits from these types of sales are as a result of the use of liquidators who usually handle these sales. Most large chains will hire liquidation companies to perform these sales. Once a liquidator is involved they will try to get the greatest profit on behalf of their company. They do not operate at a loss nor do they discount the items in favour of the customers. It has been said that liquidators often raise the prices at the start of the sale and progressively lower these prices during the period in which the sale will continue.

Liquidators are not above misleading customers into thinking that the products are substantially discounted and are possibly the lowest prices they will encounter during that period. The liquidators as said previously function purely to make a profit. They will not close the sale with a loss. It is even said that these liquidators will sell any excess merchandise to overseas locations that are more willing to buy merchandise at any cost in lieu of reducing the price below a profitable margin.

Another factor that may affect going out of business sales may be as a result of illegal activities. This simply refers to those sales that are truly not going out of business sales. In cases such as these a sign that indicates a closing down sale will be put up, however there will be no actual reduction in the prices. In certain states laws are put in place to reduce the numbers of scams that occur. However, they still materialize occasionally and are most apparent when the store is located within an individual's area.

How to Find Going out of Business Sales

If the company is a large enough company these sales will be widely advertised on the television. You may see these advertisements on regular network channels quite often.

Blog Post Courtesy of Brad Renawski, Business Adviser.

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