Guest Post: Going-Out-Of Business Sales Might Not Make for The Best Deals

Photo by Megan Watson

Guest post by Megan Watson from  Greater St Louis Frugal Living Examiner.

Ultimate Electronics and some Borders stores in St. Louis are closing their doors, but before they do, liquidators are on hand marking down prices. This may sound like savings rally call, but it could be with a horn that’s a little out of tune.

It’s important to remember that the point of liquidation is to make money. Sound contradictory? A liquidation or going-out-of-business sale is designed to get customers to make impulse buys out of a sense of urgency. These sales thrive on the “I better buy it now or this deal will be gone” mentality. Retailers, while going out of business, still need to make money. Many closing businesses, including Ultimate Electronics and Borders, are in bankruptcy. Therefore, the more money they make, the more debts can be paid - which better satisfies bankruptcy courts.

Sale prices at Ultimate Electronics are, at most, 30% lower than the retail price, ie: highest price. That will continue to lower but only as the harder to move merchandise remains. Before heading out for a major purchase at Ultimate Electronics a savvy shopper will have already researched and know what price they’re willing to pay for an item. If that item isn’t low enough, that savvy shopper knows they can wait for a sale elsewhere.

Another fact to remember when it comes to electronic and appliance purchasing at this time of year, is that the Japanese fiscal year is about to end. This means deals will be found at all retailers selling Japanese manufactured electronics and appliances as retail space is needed for new model years.

In contrast, the sale at Borders could prove an opportunity to get a discount on books and music - merchandise that doesn’t see as many or as deep discounts. A couple suggestions for making the most of their discounts: Book club members or groups of book-loving friends could divvy up the common items on wish-lists and agree to swap titles when complete. Buying a book is always more expensive than borrowing from the library, so avoid purchasing titles that are likely to only be read once and shelved. Non- book and music merchandise, such as office supplies or kids toys, are more often found on sale and usually at a better price at other retailers.

Coupon STL readers might now Megan from Megans Moenysaving Madness.  She is now writing for St Louis Examiner as the Greater St Louis Frugal Living Examiner.  Congratulations Megan on your new venture!