7 TIPS for Shopping at Liquidation Sales

It’s a troubling sign of the economic times: Some of America’s most well known stores are going out of business and liquidating their inventory. The sales may seem like a chance to pick up some good deals, but put away your wallet just for a moment. We found there are definite pitfalls to liquidation shopping. Here’s the real deal: We found they aren’t always a bargain.

1. How can it not be a bargain? The signs say 20, 30 and 50% off!

When the store’s in true liquidation it means it’s bankrupt. A third party, called a liquidator, is hired to come in and sell every bit of merchandise it can. Those tantalizing signs go up and sellers try to convince you the prices are going down. But you – savvy buyer – need to remember often that’s just hype.

2. Hype?

Yeah. Hype. First, some liquidators artificially raise the price. Then, they lower it. Voila. Thirty percent off.  Yeah, 30 percent off their weasely raised price.  That’s a false sale, and it it’s illegal in Massachusetts. But it’s difficult to discover, and more difficult to prove. 

3. How do I know if I’m getting a bargain?

Comparison shop. Make sure you know the real price of your potential purchase. Then go to the store and see if you are really getting a deal!

4. What if something goes wrong with the item I buy. Can I return it?

Open up whatever you bought before you leave the store. Make sure what’s inside is what’s supposed to be inside and that it is not damaged. You are in a much better position to make your case while you are still in the store.

5. If there’s a liquidation sale in Massachusetts, wouldn’t state consumer protection laws apply?

Not necessarily. Regulations for liquidations are set in bankruptcy court rulings and they may allow ‘as-is’ purchases, in which case you’re stuck with what you get. The rules are different for every liquidation. They’re required to post their rules and return policies just like any other store, but we know that doesn’t always happen. So if you don’t see signs that give you the scoop make sure you ask before you make your purchase.

6. What if something goes wrong with my purchase after the store is closed for good?

We can’t say this enough: If you are making a liquidation sale purchase, pay with a credit card. If you don’t get what you paid for, you can call your credit card company and dispute the charges. They’ll investigate and you may be able to get the purchase price refunded. If you paid cash and the store is closed, you are pretty much out of luck.

7.  I have a gift card for a store that’s in liquidation, what should I do?

Some stores will honor them and some won’t. (The decision also must be approved by the bankruptcy court.)  If the place is accepting gift cards or gift certificates, use them right away. Once the store closes for good they’ll most likely be worthless.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (http://www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at the Boston Examiner. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.