Behold, Another Investigation Concludes That Circuit City's Liquidation Sale Is Awful
Hey, we're sorry if you're getting sick of hearing about how Circuit City's liquidation sale isn't a good deal, but it's our duty to inform you that yet another local news investigation has determined that CC's sales are crappy. In this case, they found every single item they shopped for, from DVDs to big screen TVs, cheaper on-line — and took a look at a laptop that is now being sold at a sale price that is more than before the store was taken over by liquidators. Let's listen in:
CC customer: "I walked out of the store and I thought... this is crazy!"
Action News: Because this laptop computer made by Sony was $799.99 on January 12, before Circuit City's Liquidation. The consumer says it was not on sale, but now during the liquidation, the laptop is being sold for $37 more.
The report showed the woman's receipt and the new sale price of the laptop.
We dug up a cached copy of Circuit City's website, and it shows that the laptop was being offered for $799.99, but that it had a MSRP of $929.99, which is the price that the liquidator is discounting from.
The same laptop is being offered by Newegg for slightly more than the liquidation sale, but the best sale price we could find was still Circuit City's before they were being liquidated.
You can see the report here.
Liquidations offer bogus bargains? [Action News 6] (Thanks, Brian!)
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Comments:
@humphrmi: According to the story, that's not entirely true. While the prices are somehow higher than CC's own old prices, they are apparently still lower than Newegg (which in my experience has been one of the lowest price electronics retailers on the 'net) or any other seller right now.
Now this probably isn't true in all (or even most) cases, but it is here. Math is your friend!
While there is no dying people are idiots for finally shopping at CC in droves, online purchases of electronics is hardly the end-all.
Newegg can have ridiculous return policies on certain items. Case in point I just bought an LCD monitor from them. Unknown to me at the time, the item was quickly discontinued and slapped with a bullshit return policy of "no refunds". Go figure: the monitor has a dead pixel on it. Newegg won't process a return without anything less than EIGHT dead pixels. What is this? 1995?
What many people also don't realize is Newegg will NEVER comp return shipping for an item. Never. They'll pay to ship a replacement back to you, but everything leaving your possession is on your dime. There is no reason for this, other than to cut costs. If they're trying to combat buyer's remorse, they already do as such by implementing restocking fees, even on returned, defective items!
This is the reason for brick & mortar stores, people. I have had enough of dealing with Newegg and playing Russian Roulette each time I click that "Place Order" button. In the last six months, I have had a DOA motherboard and defective monitor. Both I have lost money on. If I had bought these at a B&M store (as I did for both of their replacements), I would have only been out the cost of gas for a 20 min round-trip.
Newegg, and every other online retailer, has to make large strides in their return policies in order for me to consider paying over $20 for anything electronic online in the near future.
If you pay attention, most of the prices inside Circuit City are higher than they were before. Compared to other brick and mortar stores they had very competitive pries on big ticket items prior to going out of business. The thing they got everyone on was the accessories like cables and surge protectors. Now everything is higher because teh liquidators know that the general public is not very smart and will buy just about anything if it "seems" like they are getting a deal. Why do you think they have going out of business signs up everywhere? Its not because they are proud of it...
Anyone who makes a purchase without doing their own homework deserves to pay more. Had they shopped around before maybe Circuit City wouldn't be in the situation it is in and 35000 people would still be working.
@supercereal: "I can't understand why things being cheaper online is news"
You're right, it's not really fair to compare the prices of an online retailer to a brick and mortar retailer.
However, you really should be able to compare the prices of a brick and mortar retailer which is being liquidated and who offers no warranties to the prices of an online retailer.
There is simply no reason to buy from the higher priced liquidated retailer. And advantages of buying locally are simply eliminated by the liquidation.
Be patient my friends...the word is out, we know what they are trying to pull here! All we have to do is wait till the 11th hour and then we can make our attack...they won't have a choice by then, they can't close shop with all all that merchandise...soon, our day is coming soon...(BWAHAHAHAHAHAHAHAHAHAHAHAHAHAA)
@supercereal: It's all evidence leading to the conclusion that the "sale" is a sham and should be avoided. "These are ALL the different places where you can get a better price etc etc"
@swissdietcoke: The only thing worth spending for a protection plan on is a laptop.
Seeing as how it is a laptop, I'm not particularly faulting them, although now I'll extend the warranty straight with the manufacturer.
What? A problem with an online retailer and a return??? And a B&M store having a better return policy? Not possible!
It's why when I buy a large item, I'll go to BB, just in case. I've purchased 5 TVs in the past 5 years. Only one was from an online retailer, and luckily I've had no problems. And the ones I bought at B&M? Open box with a full warrenty, and cheaper than online. Most of the open box stuff was more or less new, as well.
@BlackMage is doing the Time Warp agaaaaaaain!!!: Returning something at a B&M store is not "free". There's the issue of how much your time is worth and any transportation costs in getting you and your item to/from the B&M store. Also don't forget the lovely experience of dealing with the customer (dis)service representatives the big box stores hire. Or that there'll be one rep, 15 people in line.
Unless it's a refrigerator or similar item that you'd have to ship by freight instead of by traditional shipper, it's much cheaper for me to just fill out the RMA online, slap a FedEx sticker / postage meter label on the box and call it done. How much is your time really worth?
I just recently returned an LCD TV at Radioshack, of all places. Few questions asked, and after a brief check of the box's contents, I had my refund. Tax & all. I even bought an upconverting DVD player while I was there.
The cost to ship that 32" TV, with insurance, would have been much greater than the gas I used driving a few blocks, and the value of my "time".
When a small item like a cell phone costs $8 to ship, AND I have to worry about it reaching its destination, AND when gas is so cheap, you're damn right I'm going to drive to a store.
No, I'm glad to hear about another report. It's nice to see this kind of a story becoming mainstream news.
It seems that this liquidation is so outrageous it's in danger of becoming the botch job that ruins liquidations for years to come. Once the public becomes educated and has a more realistic perception of these phony liquidation sales, the liquidators will have no choice but to change their strategy.
@Squot: Well, it certainly is not worth spending for a protection plan on anything from a store that is closing its doors. Even a laptop.
@swissdietcoke: I think that's a little insane for a protection plan. I mean, for a litle over $300 more, I could buy a 2nd laptop. I'd rather take the risk and not buy a warranty which would probably never get used.
@BlackMage is doing the Time Warp agaaaaaaain!!!: No, but Amazon sells a great deal of the same electronics for similar prices as Newegg, and is fabulous with returns. You simply print a mailing label and drop it off. And even get the replacement before you send back the return.
@raptorrapture: Well who else are they going to compare to? There are no other major electronics chains (that are price competitive--although there are a few smeller independent chains) in the Philly area, where this story is from.
I went to CC on Tuesday and used the Amazon application on my iPhone to check prices. When the discounts at CC reach 30%, they will be a good deal. Until then, let the other guy pay too much.
I'm happy to pay more to get service or to get something immediately. For instance, go to Nordstrom or to an Apple store and you'll get great service. But you're not going to get much help from Circuit City staff during their liquidation. At least that's what I saw.
@GMFish: The store never really offered warranties themselves. All sales final in this sense does not and never has meant that the manufacturer's warranty goes down the tubes, you just have to actually contact the manufacturer about it. The only warranties sold by Circuit City were third party add-ons and the ability to return a lemon.
@BlackMage is doing the Time Warp agaaaaaaain!!!: Obviously we both earn different salaries. My time is very valuable to me both in monetary and non-monetary ways.
Just ran the dimensions for a 32" TV box through our mail room. $24 to ship. That's certainly less than taking 30 mins out of my day (you quoted 20 mins round-trip to the store, I'm assuming it'll take ~10 mins to get out of the car, exchange TV, get TV back in car).
and yes, tax. None of that if you're buying from the right places online. I really resent that 1% of the sales tax in this county goes to the NFL team and their stadium. Nothing like corporate welfare. So tax here's 7%. As long as that TV's more than $342 ($342*.07=$24), I'm still ahead of the game even with a return.
@gglockner: The employees don't care; they're losing their jobs. Last weekend, my mom and I waited in a line of customers so we could purchase a DVD (unrelated to liquidation). Once the person in front of us in line finished, we approached the register, only to have the employee turn his back on us. We waited a few minutes in case he just had to do a quick price check or something, but then another employee came over, and they started chatting, so we left the DVD on the counter and walked out of the store. Mom says she'll just buy the DVD on Amazon now.
@TinkishDelight officially OVER the dc tourist infestation: and there's plenty of evidence that everyone on the web is beating Circuit City's liquidation prices. So, Newegg is more expensive than them. Yay, Newegg! The Internets are your friend.
i don't understand what the big deal...this is how liquidations ALWAYS work. everything goes back to retail price...then they start with 10% off...after a couple of weeks, they go to deeper discounts. each phase, the discount gets better as they try to clear out more and more inventory. this is how it has always worked, so why is there such outcry about THIS particular liquidation?
Liquidations sales are a scam. OneTee, the big deal is that liquidation companies imply that they are selling products for less than what the store they are liquidating had been selling them for. No store I know of actually uses the MSRP as anything but a tool to say that they're having a sale.
It's a bunch of scam artists, and there must be new, strict laws that prevent them from raising the prices above what the actual store was actually selling them for. I.E. If a prodcut was $700 at Circuit City before liquidation, they must base their sale prices off of that price, not the MSRP.
@BlackMage is doing the Time Warp agaaaaaaain!!!: Actually, you're wrong. I have had Newegg Comp me several times for returns, and they also have covered rebates that weren't paid and have credited me when their own shipping has been slow. You must be on their S list
The reason behind this is as a retailer you get kick backs from the manufactures for putting that item on sale and in your ad, so circuit city takes some off and sony takes some off, thats why the are cheaper when on sale. This liquidation company does not get that money that sony was giving to cc when they sell it so they just lose money, now granted it is a liquidation sale so you would think they would be at least cheaper than anybody else.
@ToddPatroclus:
All warranties sold as Circuit City warranties are still good: [files.shareholder.com]
@gravion17: Gravion17, by then all the idjits will have bought all the decent stuff. There will be nothing left worth buying when they finally get down to the 70% off level where the prices would actually be an incentive to buy something you didn't need just 'cuz the price was good.
I am not tired of hearing these stories. I am shaking my head at the IDIOTS who are still walking into Circuit City during this liquidation expecting to find deals after all the reports on TV and elsewhere. Forget that it is well documented that these sales are run by companies in the business of making big profits. How many does it take (Linens N Things, Mervyn's, etc.) before the public realizes it needs to avoid these. Geez!
What is wrong with them trying to get as much money as they can? Why does everyone expect to get something at a bargain? You want it? You want to pay the price marked? If yes, buy it. If no, don't. They can mark everything in there up. If some fool goes and buys something and finds out he paid more than at store #2, that is his problem for not looking around.@humphrmi:
I do think its ultimately the consumer's responsibility in any situation to control their buying and think about their purchase. For those that don't do this, especially in today's economy, they will likely only learn by being had at this point. For all those who have tried to educate consumers you know this, some people just don't learn!
For as many years as liquidation sales have been going on, you would think a shopper would at least figure out that the stuff they are buying isn't necessarily a good deal. You don't even have to be an ultra-savvy shopper to figure that one out, and I admit that I didn't know every trick of the liquidators several years ago but I always recognized when a product at a liquidation sale was not a good deal, even before reading Consumerist. As far as I know its been done the same way for a long time.
@oneTee: I'd say it's the size of the liquidation. More people are flocking to CC than Comp or Linens n' Things, and there's a greater desire to get the word out to people. That and the massive amount of hate for CC.
@humphrmi: so, i'm going shopping tomorrow.
does anyone know if Circuit City's liquidation sales prices are any good? i haven't seen anything either way
Which company is doing the shipping? Even a ground shipment to your next door neighbor is going to cost you around $35 - $40 assuming you have an account with reasonably high volume and a daily pickup.
@Gstein:
No they are not any good at all!
We stopped in last night shopping for a desktop for my daughters birthday. They were crazy busy, shelves were getting empty but no deals at all. 30% off of rocky horror picture show if that interests you was about the best I saw.
We stopped at abc warehouse too. Walked in to find no less than ten employees standing around watching tv, playing football in the aisle and the pretty cashier girl drinking pepsi and chatting away on her cell phone. Nice.












Unbelievable. Their 'lets throw everything at the wall and see what sticks' philosophy is terrible.
Oh yeah, first.