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Some Circuit City Customers Wonder Where the Savings Are

January 22, 2009 By Stephen Silver
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As liquidation sales are launched at Circuit City locations nationwide, reports from all around the country find customers upside that the promised savings have not materialized.

According to the Los Angeles Times, customers at stores throughout the U.S. have been complaining that promised savings of 30 percent off have been closer to 10 percent on most products, especially big-ticket electronics items. In addition, those prices are percentages of the sales price, as opposed to previous in-store prices.

An executive at one of the liquidators, Great American Group, told the newspaper that "we have to be economical on our discounts," due to commitments to creditors and banks.

A TV news report on Cincinnati's WCPO found similar complaints, that virtually all electronics items at an area store were 10 percent off, and at higher prices than those offered by Best Buy, at that.

The liquidation, which has come together in a matter of days, is one of the largest in U.S. history.
 

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COMMENTS

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Most Recent Comments:
Bryan Z. - Posted on January 24, 2009
I worked as a manager at Future Shop during the liquidation in the Seattle area. Great America came in Raised ALL of the prices to MSRP, then discounted from there. The retail price you often see is lower than MSRP, so the retailer can be competitive in the local market.
I agree it is a very crappy way of doing business, but trust me it is not Circuit Citys business practice, it is that of the Liquidation Companies.
JOHN - Posted on January 22, 2009
You are so correct, they have increased the prices and then offer 10% off the inflated price. Good luck. This may have worked in the past but todays customers, who shop the internet, know what a good deal is or is not.
Paul - Posted on January 22, 2009
Ditto what Tony said. I spoke to the Verizon rep. inside their kiosk at my local Circuit City store. He said that he had been eye-ing an attractive TV monitor previously sale-priced at $1,100. After the liquidators came in, they marked the price up to $1,400 and then offered a 10% discount, making the new liquidation price $1,260, a $160 price increase! Hardly the sale prices people were expecting. He said customers were buying up product like crazy on Saturday. This only proves that the liquidators know what they're doing and the public (ie: "suckers") are stupid to trust the big "SALE" signs without bothering to compare and price shop.
Jonoathan Becker - Posted on January 22, 2009
The American consumer has only to see numbers and a percentage sign to think that they are geting a good deal.
More often then not, they do not do any home work see what the small business person offers. It is the misperceptin tha only a BIG BOX store can give a beeter deal, this is why I closed my retail store. circuit City led the industry in "loss leader sales".
Now you see the reuslt of their brand of business.
Dave - Posted on January 22, 2009
Exactly! Those looking for the super deals at CC are the scavengers. Electronics are already a great value. At 10 off MSRP they are even better. Those that are complaining want something they shouldn't be buying in the first place.
tony - Posted on January 22, 2009
What is there to complain. This is a common practice by liqudation companies. The liqudators control the pricing and inventory. People who complain should of bought at circuit city weeks ago because they were much cheaper and had better deals. These are the same people who never shopped at circuit city and now expect amazing deals. We all know liqudators are committed to paying circuit city creditors and make profit for themselves. It's not uncommon for liqudators to raise everything to msrp or map pricing then discount the product from there. You will almost never get good deals until the final days when almost everything is gone.
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Archived Comments:
Bryan Z. - Posted on January 24, 2009
I worked as a manager at Future Shop during the liquidation in the Seattle area. Great America came in Raised ALL of the prices to MSRP, then discounted from there. The retail price you often see is lower than MSRP, so the retailer can be competitive in the local market.
I agree it is a very crappy way of doing business, but trust me it is not Circuit Citys business practice, it is that of the Liquidation Companies.
JOHN - Posted on January 22, 2009
You are so correct, they have increased the prices and then offer 10% off the inflated price. Good luck. This may have worked in the past but todays customers, who shop the internet, know what a good deal is or is not.
Paul - Posted on January 22, 2009
Ditto what Tony said. I spoke to the Verizon rep. inside their kiosk at my local Circuit City store. He said that he had been eye-ing an attractive TV monitor previously sale-priced at $1,100. After the liquidators came in, they marked the price up to $1,400 and then offered a 10% discount, making the new liquidation price $1,260, a $160 price increase! Hardly the sale prices people were expecting. He said customers were buying up product like crazy on Saturday. This only proves that the liquidators know what they're doing and the public (ie: "suckers") are stupid to trust the big "SALE" signs without bothering to compare and price shop.
Jonoathan Becker - Posted on January 22, 2009
The American consumer has only to see numbers and a percentage sign to think that they are geting a good deal.
More often then not, they do not do any home work see what the small business person offers. It is the misperceptin tha only a BIG BOX store can give a beeter deal, this is why I closed my retail store. circuit City led the industry in "loss leader sales".
Now you see the reuslt of their brand of business.
Dave - Posted on January 22, 2009
Exactly! Those looking for the super deals at CC are the scavengers. Electronics are already a great value. At 10 off MSRP they are even better. Those that are complaining want something they shouldn't be buying in the first place.
tony - Posted on January 22, 2009
What is there to complain. This is a common practice by liqudation companies. The liqudators control the pricing and inventory. People who complain should of bought at circuit city weeks ago because they were much cheaper and had better deals. These are the same people who never shopped at circuit city and now expect amazing deals. We all know liqudators are committed to paying circuit city creditors and make profit for themselves. It's not uncommon for liqudators to raise everything to msrp or map pricing then discount the product from there. You will almost never get good deals until the final days when almost everything is gone.