When a store goes out of business (like Dick Smith’s recent closing), they generally have some decent sales to get rid of all their merchandise. However, these “liquidation sales” can be misleading as Consumerist points out.
Dick Smith image via Kotaku
Contrary to popular belief, a liquidation sale doesn’t necessarily mean items are at rock bottom prices. Consumerist explains how they actually work:
A liquidation sale means that merchandise that was on sale before liquidators took over isn’t on sale anymore. The original price goes back up to 100%, and then the price gradually falls. The liquidator will first mark items down to 10% off, then 20%, finally escalating to some actual deals that might even beat sale prices at competitors.
In other words, if you’re rushing to save money as soon as the sale starts, you might fare better by waiting a little while. For more detail, check out the full post at the link below.