Connecticut Better Business Bureau cautions consumers about going-out-of-business sales

Liquidation prices are sometimes a bad deal

Wallingford, CT - February 24, 2009 – Connecticut Better Business Bureau is warning consumers to check retail prices on goods before buying them at liquidation sales.

Retailers across the country are being hit by the declining economy. Due to sluggish sales in 2008, some big names, including Linens-N-Things and Circuit City were forced into bankruptcy and are liquidating stock to pay creditors.

Connecticut Better Business Bureau President, Paulette Scarpetti, warns bargain-hunters to be on the alert for “false deals.”

“We are all looking for good deals and a liquidation sale sounds like the consumer will be paying rock-bottom prices. These liquidation sales however, are handled by third parties and consumers don’t realize they may be paying too much for an item when they should instead be getting a discounted price. Unfortunately, the real bargains are not always advertised at going-out-of-business sales.”

A 2008 ABC news report revealed that many items sold during Linens-n-Things’ liquidation sale were marked up as much as 14 percent. More recently, a mystery shopper investigation by Consumer Reports revealed Circuit City’s liquidation sale included “deals” such as a big screen TV that had been marked up by more than $400 and computer printers with prices boosted by as much as 100 percent.

Connecticut Better Business Bureau offers the following tips to protect consumers from getting bad deals at liquidation sales:

Shop around
Liquidators attempt to sell assets as quickly as possible and at the highest profit so some items will actually be priced higher. Moreover, competitors may sometimes drop their prices to compete with a liquidation sale.

Use a credit card
Unlike personal checks or cash, credit cards include built-in protection if the liquidator does not deliver on promised goods.

Know the status on warranties
Warranties are often serviced by a manufacturer or third party. This means the warranty will still apply, even if the retailer goes out of business. Nonetheless, consumers should always confirm the status of a warranty before buying.

Use gift cards ASAP
Businesses undergoing liquidation won’t be around very long so BBB recommends that consumers holding gift cards use them as soon as possible to avoid getting stuck with a worthless piece of plastic.

Don’t expect extreme customer service. Floor staff may be limited. Finally, consumers should keep in mind that all liquidation sales are final and that they don’t have many options if they are not satisfied with a purchase.

For more information on being a savvy consumer, visit bbb.org.

Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. BBB offers objective advice and a wide range of education on topics affecting marketplace trust. BBB also offers complaint and dispute resolution support for consumers and businesses. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than three million local and national businesses and charities. For more advice on finding companies and businesses, start your search with trust at bbb.org.

Howard Schwartz
Connecticut Better Business Bureau
94 South Turnpike Rd.
Wallingford, CT 06492

This release was published on openPR.