Businesses will encounter a couple of hardships in terms of sales volume, financial assets, and internal conflicts. While it posts a serious threat to companies, these problems are often resolvable. But in extreme cases wherein the damage is far worse than whatever repair can be done, businesses will inevitably close. At this point, they will be forced to undergo a going out of business sales online – selling their wares over the internet to generate money for paying company arrears.
There are real business entities that go under this process. Selling company equipment such as metal detectors or chairs and tables become a last resort for business people who are in deep debt and are forced to close the already unsustainable business. This type of sale is characterized by marked down prices with up to 50 to 75% cut from the original price. Businesses that are conducting this kind of sale are therefore making money because of the discount they offer to prospective clients and society’s conception that going out of business sales offer great buys and items sold with a huge discount.
But if there are legitimate businesses undergoing this procedure, there are also illegitimate businesses, which are simply riding the waves of closing out sales. The reason why clever business owners thought of advertising a going out of business sales online is largely because of commercial pursuits. Their aim to target a possible group of consumers to buy these “discounted” products is in part, a strategy of riding the popularity of the sale. In other words, they are basking in the reflected glory of closing out sales. Once they have confirmed that a captive audience is present and is willing to participate in the faux sale, the products will be given “lower” prices in order to create the notion that these were discounted.
And also, look for a warning sign of business illegitimacy. A common sign that people are dealing with a fraudster is when this type of sale has been going on for more than a month already. 90 days is enough for police to determine whether a sale is still a legitimate going out of business sale or not. Real businesses going out of business will not be able to sustain daily operations and will have to cut its remaining days as soon as possible.
Lastly, there has been a growing concern of the security in dealing with these kinds of sales. Most companies conducting going out of business sales online are already selling pre-owned point-of-sale equipment, which poses a threat to the security of pertinent credit card information of people with whom the bankrupt company have dealt with before. Because the company is desperately in need of money to pay for its debt, other liabilities to the government and to its employees, everything that the company owned before must go – even equipment that can store credit card information in its servers or memory. POS equipment must at least be formatted before getting sold to anyone who wants to buy it