Nov 27, 2008

Be wary of Going-Out-of-Business sales

Shoppers are always looking for bargains - especially this time of the year.

A report at the link below says:

Do your homework before putting cash down for clearance offers.

Many large, nationwide businesses have filed for bankruptcy protection in the past year, with several large chain stores, including Linens 'n Things and Mervyn's, closing their doors and are advertising merchandise at seemingly huge discount prices during what they call Going-Out-of-Business sales.

Consumers who shop “Going Out of Business” sales are being urged to do their homework before they buy – and that includes comparing prices.

Merchants realize that customers will be expecting bargains when they enter the store and so they often increase prices before doing the sale mark-down’s so shoppers will think they are getting bargains.

Sometimes they will bring in new merchandise purchased elsewhere at rock-bottom bulk prices to include in their sale.

A shopper will be less at risk if the sale is conducted under the supervision of a bankruptcy court - but how is a buyer to know?

Link