Circuit City: Liquidation Sale or Marketing Ploy?

[CheezeFlixz]

They are in receivership and they no longer have any say so over the prices, it's not until the last day they are open that a rep for the liquidator will be there to negotiate prices on remaining goods ... currently they will not even take less for display models, open box or damaged good, they have no, zero, nada say so over the price. Only the liquidator can change the price.

Pretty much everyone at CC is marking time until closing day.

[The Burgomaster]

And, since this is the good old U.S.A. (free market, capitalism, supply and demand, you know the buzz words), if you don't like the prices, then don't buy anything there.

[Jack]

Jack, MAYBE you're right, in theory, but I'm sure whoever's managing the liquidation sale has done plenty of studies on previous sales to come up with the optimal model. 

And I agree with you - in theory    In a perfect world you'd have your choice of several companies who had each liquidated several nationwide retail chains, and you'd just choose the one that had produced the best results, and they'd apply their scientific model to maximizing profits for this liquidation.  I just don't think it works that way.  For one thing, somebody must be hiring the companies that don't produce the best results, otherwise they wouldn't exist.  And even if a company has produced good results in the past, they always have to tinker with the formula, and try to do better.  And then there's the whole clash of personalities every time a bunch of corporate bigwigs get together in a conference room:  This company produces good results, but they're too small.  This company produces mediocre results, but they have more experience.  I've worked with them in the past, I have it on good authority, blah blah blah.  Circuit City had decades of experience in how to sell their products, yet they went bankrupt.  If a bunch of creditors that have never run a nationwide retail chain get together in a room to figure out how to best liquidate their assets, why should we assume they'll do a much better job? 

Anyhow, I don't know.     It just seems to me that they're handling the liquidation in a less than optimal way. 

[Rev. Powell]

Jack, MAYBE you're right, in theory, but I'm sure whoever's managing the liquidation sale has done plenty of studies on previous sales to come up with the optimal model. 

And I agree with you - in theory    In a perfect world you'd have your choice of several companies who had each liquidated several nationwide retail chains, and you'd just choose the one that had produced the best results, and they'd apply their scientific model to maximizing profits for this liquidation.  I just don't think it works that way.  For one thing, somebody must be hiring the companies that don't produce the best results, otherwise they wouldn't exist.  And even if a company has produced good results in the past, they always have to tinker with the formula, and try to do better.  And then there's the whole clash of personalities every time a bunch of corporate bigwigs get together in a conference room:  This company produces good results, but they're too small.  This company produces mediocre results, but they have more experience.  I've worked with them in the past, I have it on good authority, blah blah blah.  Circuit City had decades of experience in how to sell their products, yet they went bankrupt.  If a bunch of creditors that have never run a nationwide retail chain get together in a room to figure out how to best liquidate their assets, why should we assume they'll do a much better job? 

Anyhow, I don't know.     It just seems to me that they're handling the liquidation in a less than optimal way. 

Fair enough. 

[The Burgomaster]

Anyhow, I don't know.     It just seems to me that they're handling the liquidation in a less than optimal way. 

This is ironic.  They couldn't operate the business properly, and now they're even screwing up the liquidation.