We have all heard the news: The troubled economy is taking its toll, and no one is immune to its effects... Not even Big Electronics. As of January 17, Circuit City is liquidating its assets and end its doors forever. And "Out-of-Business" usually means great deals for the customers. But up-to-date articles in Pc World, Msnbc and others highlight the fact that there are no deals at Circuit City.
Despite the fact Circuit City has advertised that it is reducing prices on all merchandise by 10%, this price markdown is taken off of the Msrp. This is a marketing tactic that most often results in higher prices for items than before the liquidation started.
Tvs Printer
A comparison between everyday pricing on eBay with the liquidation at Circuit City reveals that the eBay prices are 34% lower than the currently discounted Circuit City liquidation prices. The comparison was done by walking into a Circuit City, writing down model numbers and prices, and then using a investigate tool to compare prices between eBay and Circuit City.
Methodology
As of January 2009, the mean Sales Price (Asp) of 63 unique products was considered by finding at over 2,500 eBay transactions. These products were priced from to ,500 (Msrp) and ranged diversely from Tvs to camcorders to printers. The Asps of the products were then used to presuppose price discrepancy per kind and overall.
Discrepancies
The largest discrepancies appeared in categories linked to computers and networking. Wireless routers, printers, and mice were 37%, 50%, and 53% economy on eBay than at Circuit City. Home theater receivers and digital cameras showed the smallest differences, 22% and 13% cheaper, respectively. Camcorders and Tvs ended up in the middle of the pack at 33% and 28%. There did not appear to be any trends based on high vs. Low ticket items or brand.
Although these numbers are compelling, they don't tell the whole story. The data from eBay doesn't necessarily include shipping fees as isolate line item. When buying online, shipping costs often can be a preventative to purchase and also would narrow the margin between the total costs of a transaction on eBay vs. That of Circuit City. In this case, some could argue that sales tax in a given state may cancel out shipping fees, so why not go buy the item in store?
In the up-to-date months, eBay has encouraged users to list items with free shipping and at fixed prices. This trend has a tendency to inflate the final price, with Sellers compensating for "free" shipping with a higher "Buy It Now" price. Given that a consumer's local sales tax was not factored into the Circuit City costs, the discrepancy in total cost of purchase is absolutely larger than the investigate shows, and there isn't the hassle of waiting for an auction to end.
Conclusion
Don't believe the hype surrounding the Circuit City liquidation quite yet. Shopping on eBay or other online marketplaces is currently your best option. However, this will not always be the case. Bigger price cuts will have to be made to continue to clear inventory. As this happens, the discrepancy between liquidation pricing and online pricing will continue to narrow, finally resulting in very competitive pricing. So keep your eyes open, and you may just find that great deal at the Circuit City liquidation.
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