![]() The retailer must post the permit near the store entrance.But stores conducting such sales while under the jurisdiction of a bankruptcy court don't have to get the permits.Tom Stephens, president of the Better Business Bureau of Northeast Florida, said some furniture stores used to be notorious for trumpeting going-out-of-business sales, only to reopen after a short period of time. The Duval County Tax Collector's Office issued nine permits in 2008 and three so far in 2009. Florida's cap is 60 days.Florida retailers must get a permit from the county tax collector's office for their going-out-of business sales. ![]() ![]() The retailer also can comply by filing the documentation with the Better Business Bureau, the local Chamber of Commerce or State Attorney's Office.Florida and Georgia also set limits on how long a store can keep a going-out-of-business sale. Customers are entitled to ask for and receive that documentation to see what the retailer's actual cost was for the product. "If you play the game of waiting for the deal of the century, you're going to end up with nothing."He said the best way to shop is to get a general sense of a product's price at other stores, know what you can afford, and be ready to strike when the discount hits your target.Referring to Circuit City's liquidation sale, he said, "I will guarantee you that there will be a lot of great deals at that place when we get to the end of February and March."In addition to the Federal Trade Commission's regulations, Florida and Georgia have their own state laws for bargain advertising.In Florida, a retailer who advertises with come-ons such as a "wholesale sale" or "below cost sale" must be able to provide documentation backing up that claim. On the other hand, shoppers can't hold out for too long because the merchandise won't stay on the shelf forever, said Breeden, who now is chief executive officer of the newly formed Beyond Audio."That's a hard balance to keep," he said. The discounts might not be significant at first, but typically they will get bigger each week. ![]() For some products the manufacturer's suggested retail price had fallen over time, so going back to that original price actually meant marking up prices for Sound Advice's merchandise, Breeden said.He said the key to getting a good deal at a liquidation sale is patience. "It gets a little fuzzy there."Michael Breeden, a former sales manager at Sound Advice before the electronic chain closed in December, said when a liquidation company oversaw Sound Advice's going-out-of-business sale, the company used the original manufacturer's suggested retail price as the starting point for the discounts. Because stores often change merchandise prices, the retailer could pick the highest price the item was sold for and make it the basis for the discount."Off of what is really the question," said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services. They can use a former price from the "recent past" for purposes of showing the amount of the discount. In addition, the retailer can't jack up the price for a few days to an unrealistically high amount, then turn around and offer the item for sale at a "discount" that's really closer to the store's regular price.The regulation gives retailers some wiggle room. The former price must have been an actual sales price, according to Federal Trade Commission regulations. Stores going out of business are adding to the price-slashing promotions, with Circuit City being the latest to roll out a liquidation sale as it moves to close its stores.To capitalize on those sales, it's crucial to do comparison shopping and make sure a ballyhooed bargain isn't just a so-so price dressed up with a sophisticated marketing campaign."When you see something is 45 percent off or 70 percent off, you still need to do your homework to see if that's a good price," said Shawn Conroy, spokesman for the Georgia Governor's Office of Consumer Affairs.To some extent, consumer-protection laws guard against retailers misleading shoppers through "bargain advertising."Merchants promoting a reduced price for an item can't just make up the previous price. Does 20 percent off grab your attention?What about 40 percent?Or 60 percent?Pick your number and you can find a store promoting that kind of discount this post-holiday shopping season as retailers try to get reluctant shoppers to spend.
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