“Going out of business” sales or G.O.B’s as they are known in the industry are a business unto themselves.
There are companies whose only business is to open their doors with a big advertising splash and then quickly go out of business a few months later with another advertising blitz. Then they re-open under a new name and repeat the process.
Companies like these try to take advantage of consumers who believe there are substantial bargains at “grand opening” and “going out of business” sales.
There are legitimate going out of business sales, but even in those cases the owners usually authorize a liquidation company to bring in its own merchandise to add to the store’s inventory. That merchandise is often inferior and overpriced.
- If you are not familiar with a store’s inventory do not believe the prices posted for a going out of business sale. Some companies raise so-called “original” prices so the advertised discount looks better.
- Shop around and compare prices before buying anything at a going out of business sale.
- Be aware that many items in a sale were brought in just for the sale and may not be of the same quality normally offered by the store.
- Understand the sale will likely last much longer than what the advertising claims.
- Be careful of misleading advertising such as “total liquidation of out of business merchandise”. That kind of wording is designed to make you think it’s a going out of business sale when it’s not.
- Sales are usually final and there are no guarantees. So be sure to carefully inspect items before you buy them and don’t plan to return them if you later have a problem because the company will probably be gone.