Circuit City is preparing to close its 567 remaining stores as efforts to find a buyer have failed. Liquidation of the remaining inventory will be part of this closure.
Like most other things in business, a problem for one person is an opportunity for another. All-sales-final, everything-must-go sales can bring monster deals for entrepreneurs. I've been to store closings during the final days that the remaining inventory was discounted 90% or even 95%. Brand new, in the package, selling literally for cents on the dollar, almost certainly at a loss.
When Tweeter closed in December, we bought a few items for sign displays. We used these at a craft show my wife went to, and we paid a fraction of what they would have cost at Staples. There was still a limited inventory of high-end electronic equipment with the price slashed 50% or more. If I followed that market more, I know there were great deals in there. Possibly great enough to resell on eBay, even if I didn't really want to own the equipment.
If Circuit City closes its doors in a similar fashion, there could be some fantastic deals. Items aren't slashed 90% right from the start, of course, but as the store gets smaller and the shelves clear out, the deals get better on what remains. On the last day, the selection will be thin, but the deals will be phenomenal.
To take advantage of the closing, try these:
- Find out when the last day of business is. The more time you have to look over the merchandise, the better. The more planning you can do, the better.
- If you have a resale business like an eBay store, start scoping out the items, and see what you can sell them for. Determine a price point that will give a good chance for profit on the item.
- If you've had your eye on a particular item, one that you'd want to own, don't wait too long, especially if it's a popular item. A 10% or 20% discount on a high-ticket item is good for you. You'll want to buy when the discount isn't so great that you'll have competition from resellers.
- Don't be afraid to lowball. The worst they can say is no, and the closer the final day of business gets, the less likely they are to say no.
- Ask about the business equipment. They'll need to sell their shelving, cash registers, price guns, tape, computers, etc.
- Bring help. They probably won't provide help lugging out truckloads of stuff.
- Borrow money to buy? Only if you're really sure that you can afford it! This recession will be long. Make buying some liquidated inventory an opportunity, not a burden.
FYI, Circuit City is using Gordon Brothers as the firm to facilitate their liquidation. Read this report on Gordon Brothers to find out how slick they are and how much of a rip-off they really are.
This is a shame. Definitely a sign of the times. I have been checking Dealio.com every morning. They are a coupon site. They will be keeping everyone up-to-date with Circuit City deals.
I had great luck with Linens N Things when they, unfortunately, closed their doors. Circuit City certainly started off poorly with their going-out-of-business stuff. I wonder if they’ve changed their tune now that time is up.
I think the Fry’s electronics store here helped but Circuit City and CompuUSA out of business, just because they offered better deals. On the flip side, my boss bought a open boxed widescreen tv for half the price because there was a problem with it, and he called the manufacturer while in the store to see if it was still covered under warranty, which it was, and they had it fixed 48 hours later. Not bad..
Consider Circuit City and Linens N Things cautionary tales and motivation to get your personal financial life in order. Save automatically. Set goals for your personal savings each paycheck.
If you are going to “save” as they liquidate,” make sure to put the savings in your savings account. Seriously.
Thank you.
Loyd Ford
I work by one of the ones that closed last month. Their going out of business “markdowns” had higher prices than their typical “sales”. The store was almost empty and they were selling ipods and open box TVs for 10%-20% off retail. When does Circuit City, Best Buy or Amazon ever sell a TV for retail. I’m guessing there are going to be too many suckers for anybody to make any money reselling this stuff on ebay.
I too went into one of the CC stories looking for a bargain on a Nano,NIkon camera, and Nintendo DS (brain age game)to my surprice they had not receive any Nintedo DS’s, only Nikon DS60 was on display and they didn’t know if they could sell for more than the 10%-20%, and the Nano would have bought but would like a better discount. I guess these are trying to say in business but they are going have to consider putting the customer first-pricing will be the driving force.
Haven't seen much of a discount at my local store but there were about 50 people in line though.
Have you found any good deals yet? I've been hearing that their clearance prices are higher than regular prices at many other places! The Mercury News recently had an article where the author took in a Best Buy circular, compared prices, and found that Best Buy beat Circuit City on nearly every price.
Laptops were priced better at Best Buy AND Office Depot!