Don't even bother with the Circuit City sales
Filed under: Shopping, Bankruptcy
After Circuit City announced that it's closing this week, I heard more than one person contemplate stopping by to see if there are any bargains to be had. The Sunday ad circulars came out in the newspapers today and my husband I noticed they had some already pretty good prices on laptops. (We also noticed they were still seemingly offering no interest payments for three years, but figured that deal was probably over.) So we brought the ad along on errands.
As we approached the store on Union Square in Manhattan, we saw they had stationed men with giant placards to lure people in to cash in on the store's demise. They had those same, bold "GOING OUT OF BUSINESS" signs you see on stores not really going out of business. And they also boasted 30% off.
So, we went in. Then saw the signs "10% to 30% off." Hmmm, that's a little different. Huge crowds of people thinking they'd get great deals. But here's the thing: We went looking for the Sony laptop, normally about $780, on sale at $650 -- with a $130 rebate. That last part should have clued me in. We found the computer, 10% off the original price. So it was about $700 instead of $650. In other words, their clearance price was worse than their normal price.
I think they're going to have to do a little better to unload all their stuff.
So, we went in. Then saw the signs "10% to 30% off." Hmmm, that's a little different. Huge crowds of people thinking they'd get great deals. But here's the thing: We went looking for the Sony laptop, normally about $780, on sale at $650 -- with a $130 rebate. That last part should have clued me in. We found the computer, 10% off the original price. So it was about $700 instead of $650. In other words, their clearance price was worse than their normal price.
I think they're going to have to do a little better to unload all their stuff.



Reader Comments (Page 1 of 16)
1-20-2009 @ 11:17AM
Seazon said...
That's why the store is going out of business! Circuit City ripped me off about four years ago and tried again a year ago, however they failed. If you try to rip off your customers, look forward to your business failing.
Reply
1-21-2009 @ 9:57PM
Mike said...
"Seazon" obviously you are novice to the way bankruptcy liquidation works. The stores are going out of business because people like you that think you're getting "ripped off" stop shopping there instead of asking questions. So the liquidation company comes in, sets the price of each product at MSRP and starts the deductions from that point. You, the un-educated consumer thinks he/she is getting a great deal, however what you need to understand is, this has nothing to do with Circuit City. 3 things to remember, you are a buyer, the liquidation company is the seller, and the building that the products formerly owned by Circuit City are housed in is where you shop. That’s it. Another fact to keep in mind is Circuit City has already been paid for the merchandise from the liquidation company. They obviously want to make as much money as possible, like any company, they'd rather not take a loss on something when there is a profit to be made, business 101. You also can't forget the remaining 34,000 employees who are days away from losing their jobs while you sit a home in a bean bag chair eating cheeto's criticizing the company that "shafted" you, when most likely the entire time, you just mis-read something and find it easier to place blame somewhere other than yourself.
As for the advertisements that others referred to, they are pre-made and pre-shipped. Sales advertisements do not apply to liquidation sales, especially since Circuit City NO LONGER OWNS THE PRODUCTS.
Each store is also CLEARLY marked with signs that dictate what the liquidation company wants (i.e.: up to 30% off, 10-30%, ALL SALES FINAL, NO RETURNS/EXCHANGES, and types of payment taken during the process *usually no checks are accepted). IT IS NOT THE FAULT OF THE LIQUIDATION COMPANY OR CIRCUIT CITY IF YOU CAN’T READ.
1-21-2009 @ 12:26PM
IPA said...
Mike, Nice work educating us as consumers, however you sound as if you are about to become one of their laid off employees. If she is the consumer looking to purchase something why should she have to ask a million questions when the next store over has the exact same item clearly listed and priced competitively? Another idiotic comment you make is that we as the uneducated consumer go into the store during liquidation and shop there thinking we're getting a good deal. Read a little more, you'll find out that most are saying there is no good deal there currently just as the article states. Circuit City caused their own demise, not the uneducated consumer and THEY are the responsible party for having to liquidate all of their assets, thereby FIRING 34,000 employees. The audacity you have to suggest that the consumer is at fault for the mismanagement of Circuit City clearly demonstrates that you are in no position to educate anyone at all.
1-21-2009 @ 12:39PM
Devonshire Is said...
gee Mike You totally sound like a disgruntled member of the 34,000. Your vehement rant about the 'uneducated' consumer and their part in the demise of a giant like Circuit City is laughable. I havent bought an electronic device in America for years and years. I get everything shipped to me directly from Japan. That way I dont have to have some pimple faced retailer schmo try to tell me what I need. Im glad Circuit City is going under. Oh and who the hell owns a bean bag chair anymore??? And I wouldnt be caught dead with a bag of Cheetos.
1-21-2009 @ 2:49PM
nancy said...
Same thing happened to me years ago. Never shopped there again. Glad they are closing, never shop there any way. Unethical businesses should close there doors!
1-21-2009 @ 4:57PM
FLIP said...
THERE ARE 2 THINGS I DON'T UNDERSTAND THAT PEOPLE DO(WELL MORE THEN THAT BUT THESE TWO GO ALONG WITH THIS CURRENT THEME) PEOPLE SAY THAT THEY HAVE BEEN RIPED OF BY CIRCUIT CITY MORE THEN ONCE WELL MY QUESTION IS WHY DO YOU IDEIOTS KEEP GOING THERE IF YOU EAT SOMETHING AND IT TASTE BAD YOU DON'T EAT IT AGAIN. SO YOU ONLY HAVE YOURSELF YO BLAME(BUT FEEL FREE TO BLAME OTHERS FOR YOU PROBLEMS) THE SECOND THINS IS WHY PEOPLE KEEP SAYING BUYER BEWARE IT SHOULD SAY BLIND PEOPLE BEWARE BECAUSE IF YOU CAN'T READ THE GIANT SIGNS THAT THEY HAVE UP THAY SAY NOT ONLY WAHT THE DISCOUNT IS BUT ALSO WAHT THE PRICE IS THEN YOU ARE AND IDIOT AND YOU DESIRVE TO PAY MORE. I'VE WORKED FOR BOTH CIRCUIT CITY AND BEST BUY AND BELIVE ME YOU ARE GETTING RIPPED OF ALL THE TIME FROM BEST BUY AND YOU DON'T EVEN KNOW IT BECAUSE THEY HAVE COOL ADS AND SHINNY COLORS. GROW UP
1-21-2009 @ 6:12PM
alysse said...
I'm really tired of people whining about getting screwed. Yes there are some real cases, but for the most part, it is the buyer that doesn't pay attention and that is not the store or providers fault. NO refunds, mean NO refunds. FINAL sale, means FINAL.
And LIQUIDATION means to get rid of, and that's what a LIQUIDATION company is hired to do, but they can only stay in business if they make a profit. They do not pay full retail when purchasing the store products, they pay a contracted percentage and they keep the profits. It will never exceed the original MSRP of the product. Nor do they guarantee the condition if you pay attention. For those whom received a product that didn't work. Most like a consumer returned it without making that known to the store when they returned it. Every time I've returned something that was damaged they marked it as such, or they would mark return to stock if it was just a case of changing my mind. So blame the savvy consumer who ripped off CC to begin with.
1-20-2009 @ 12:12PM
Swell528 said...
I've worked for a few retailers that went bankrupt. They all had been trying to stay afloat by marking down prices for months, really great deals. Once the bankruptcy was announced and the liquidator came in, the liquidator immediately marked the prices way, way up. It wasn't until the last days of the bankruptcy sale that the liquidator's prices approached the retailer's pre-bankruptcy prices, but they were still higher. Then they sold the remaining product in bulk to another retailer. Hint: Professional liquidators hire day-laborers to wave signs at people. Retailers in trouble, don't. Try to buy, before the liquidator comes in. If it looks like the retailer is obviously in trouble, don't ever pay by check if you have to wait for delivery, or installation of what you buy. Purchases made by check go into bankruptcy court, you don't get the product/install, and you get pennies on the dollar for your loss, once the bankruptcy judge settles the case. This could be months, or years later. The liquidator will not help you, since they don't assume the responsibility of your loss, when they come in. Don't open up lines of credit with a retailer who is in trouble, they can and do max out your credit limit to create cash flow for themselves. They just run the financing for everything it's worth after you leave the store. They eventually get caught, and go to jail, but some of them actually stoop this low. I'm not a lawyer, I'm just saying what I've witnessed going on in these situations. Please be patient with the employees in this situation, they are just trying to get to the end of a horrible situation, so they won't loose the chance to collect unemployment, or until they find another job.
Reply
1-21-2009 @ 6:40AM
Boomarang1284 said...
Thank you I was a worker at one of the stores that closed during the first round and I appreciate your comments because people don't get that it is not the company anymore it is the liquidators.
1-21-2009 @ 8:25AM
Peggy said...
I agree with you 100%. My son works for Circuit City . When he went in on Saturday, the liquidators came in and the store no longer has control over anything. He has been getting yelled at my customers who don't realize this is a kid working part-time while going to college who has nothing to do with the operating of the store or the prices. What he will be when this is over unemployed. So give the kids a break and shop somewhere else because you are right about them raising the prices. I went two days in a row to check out a flat screen TV and it was more the second day!
1-30-2009 @ 12:22PM
Juan said...
Good advice !
3-01-2009 @ 3:41AM
GardenGate said...
Wish there are more people like you. Very nice and informative.
1-22-2009 @ 10:09PM
S Riesen said...
Circuit City is not marking product up prior to taking the discount of UP T0 30%. The discounts are taken off their regular prices not an inflated price. Since these are flat discount rates of 10 to 30% off; depending on the product you can and will find better deals on sale else where. Prices will then drop 20 to 40% which will be comparable to others sale prices.
Reply
1-21-2009 @ 6:16AM
tony said...
Its just like everything else............................let the buyer beware.
Reply
1-21-2009 @ 6:42AM
Adriamarie said...
It's not Circuit City controlling the prices now, It's a Liquidater and they are really good at ripping people off. What they do is buy the inventory at cheap, turn around and jack the price up so that they make an abundance of money for there overhead. Liquidators don't care and sometimes when they change the price ticket they leave the old one on and You can see they have actually rised the price. It's just a good idea to stay away from Sales like these, You NOT saving any money.
Reply
1-21-2009 @ 9:09AM
Richard Leelman said...
Your spelling is terrible.
1-21-2009 @ 5:55PM
wally said...
The next time you go into a store thats having a sale buy a Franklin "spelling Ace " boy does you need it. HAHAHA
1-21-2009 @ 6:32AM
Walter said...
Circuit City is and always has been a bunch of low life crooks. Top heavy execs broke the chain, without regard to employees.
The execs belong in the jail at the bottom of the Pacific Ocean.
I have dealt with them, and it's always been a fight to get what you are due.
I place a curse on the execs and theirs for all the days to come for the crimes they have committed.....
Reply
1-21-2009 @ 6:37AM
Stan said...
We too went into Circuit City and found the same signs as others: 10-30% off. The prices after the discounts, which was on just a few items, was no discount at all! bUYER BEWARE!
Reply
1-21-2009 @ 6:44AM
Teresa said...
How stupid, all stores do the same thing in pricing or they will raise the price up and then with the sale price its the same or a smidge lower. I laugh at all the people running into any store when its going out of buisness and they come out with baskets full. The only time you save is if its 80 or 90 pecent off and by then your selection to pick through is junk!
Reply