Reader Michael’s fiance experienced first hand what we’ve been warning you about when it comes to liquidations. Liquidators are notorious for raising prices before “discounting” them, so make sure you know what the real list price is before you try to get a deal a closing Circuit City store.

Michael says:

My fiancé stopped by the going out of business Circuit City in Parker, CO yesterday. We’ve been considering purchasing a Sony BDP-S350 Blu-Ray player and just the day before had seen it for $299 at a local Best Buy, and Amazon.com has it for $249. Thinking there was a chance to find a good deal, she stopped in and found one in this Circuit City with a 50% off sign. When she asked a salesperson the price they quoted her $309! She asked if that was the sale price and was told yes. The salesperson continued to tell her what a great deal this was. She asked “So, the list price of this device is more than $600?” Yes, the salesperson insisted and that this was an amazing discount. “Stop bullshitting me,” she finally replied and walked out.

Circuit City’s own website says the list price of that DVD player is $299 — but that doesn’t really matter, because the Circuit City your fiance was visiting isn’t being run by Circuit City anymore. The inventory is being liquidated by a company that paid a lump sum for the whole thing — and is trying to maximize its profits by squeezing out every penny. Often, this means raising prices before applying discounts.

Most so-called “liquidation discounts” aren’t that great. Before you go, make sure you’ve done your homework like Michael’s fiance did.

(Photo: analogkid281 )

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.