Bureau says beware of bargains at liquidation sales

With Borders Group, Inc. set to go out of businesses and the subsequent liquidation sale ready to begin, the Better Business Bureau (BBB) is warning bargain-hunters to be on the alert for "false deals." "Consumers are always on the lookout for good deals and a liquidation sale sounds like a good place to get rock-bottom prices," said Patrick Bennett, BBB Director of Community Relations. "Because liquidation sales are often handled by third parties, consumers could actually be paying an inflated price instead of getting a discount." BBB offers the following tips to protect consumers from getting bad deals at liquidation sales: * Shop around--Liquidators attempt to sell assets as quickly as possible and at the highest profit so some items will actually be priced higher. Moreover, competitors may sometimes drop their prices to compete with a liquidation sale. So check retail prices on goods before buying them at liquidation sales. * Use gift cards ASAP--Businesses undergoing liquidation won't be around very long so BBB recommends that consumers holding gift cards use them as soon as possible to avoid getting stuck with a worthless piece of plastic. * Use a credit card--Unlike personal checks or cash, credit cards include built-in protection if the liquidator does not deliver on promised goods. * Know the status on warranties--Warranties are often serviced by a manufacturer or third party. This means the warranty will still apply, even if the retailer goes out of business. Nonetheless, consumers should always confirm the status of a warranty before buying. * Don't expect top-notch customer service--Floor staff may be limited. Finally, consumers should keep in mind that all liquidation sales are final and that they don't have many options if they are not satisfied with a purchase. For additional information on being a savvy consumer, visit www.bbb.org. Published: Wed, Jul 27, 2011