The Real Scoop On Going Out Of Business Sales

As I pass by the “closing forever” sign outside of a nearby furniture store I wonder why I haven’t made the time to stop by. Then it hits me. How long has that store been going out of business? I believe the signs have been there for five months or more. Is this store really going out of business? What’s the deal?

The Better Business Bureau (www.bbb.org) warns that year-round, and more often during the holiday season, deceptive advertised sale prices have been seen in connection with well-planned, highly-advertised “going out of business” sales. In some cases, these “going out of business” sales are actually conducted by out-of-town companies that bring in large amounts of inventory originally marked at highly inflated prices.

An easy way to find out if the store where you are shopping is really going out of business is to look for their closing license. Stores that are going out of business have to hold a license from the municipality, and are required to post the license with their permit number at the store. Licenses are obtained through your county offices so you can always call and check on the store’s license yourself. There’s usually a 60- day limit to the possession of a closing license.

How can you be sure you are getting a good deal if you do choose to shop at a “going out of business” sale? It’s always best to do your homework on the product you are looking for. The Better Business Bureau suggests going to a name you can trust. Choose a store that you have shopped at in the past and are familiar with the products and prices. Do not order furniture from a store that is going out of business. Only purchase tangible products that are currently available to you in the store. Also, be cautious when you do purchase at a closing sale as all sales are generally final.

If you notice the same location seems to be going out of business over and over again, they are probrobly a liquidator. This doesn’t necessarily seem they are bad. Just know they are most likely bringing in products not just clearing out for the sale. Many liquidators advertise deeply discounted prices such as 75 percent off, when the supposedly marked-down price is actually higher than the normal selling price for the advertised product.

Deceptive marketing practices have also been seen when “transient merchants,” operating a so-called sale from a hotel room or warehouse facility, advertise a weekend “Public Notice” sale. These travelling sales crews may claim to offer “federally seized” merchandise at discounted prices. In reality, such claims are often a pretense to convince unsuspecting consumers that they are getting a bargain price when that is not the case.

Be a smart shopper and don’t get lured in like me, with the big flourescent “closing forever” signs. Do your research first before you walk into a sticky situation. Check the company’s background on the Better Business Bureau’s website or call your county office to check on the status of the store’s license.