What is a fire sale
What is a fire sale?
A fire sale is a sale in which goods are sold at extremely low prices, usually well below the retail value and sometimes even below the wholesale price. Typically, the goal of a fire sale is to get as much merchandise out the door as possible, with the shopkeeper sometimes willing to take a small loss in order to do so. Fire sales are sometimes billed as "sellout" or "sellout" which reinforces the notion that goods are being sold at very low prices and that consumers must act quickly if they want to take action.
This term refers to sales made by stores after literal fires. In the past, the choice was between selling goods or throwing them away if they were damaged by fire. Sometimes goods are perfectly usable, if a little smoky, and it would be better to make some money than to throw it all away. Until the goods were cleared out, the company was unable to make repairs and replenishments, so it had an incentive to sell everything as soon as possible.
Fire sales can also be done after other disasters such as flooding, building collapses, etc. While not all merchandise is for sale, often minimally damaged merchandise can be collected at a low cost from a fire sale. This is especially true in cases where consumers are willing to repair minor damage or live with items that smell a little like smoke for a few months. Often times, stores are already getting the full replacement value from the insurance company, so selling by fire only gives the company a bit of extra capital.
People also use this term when companies sell their products during bankruptcy proceedings. Companies filing for bankruptcy hold fire sales to reduce the size of their assets and provide cash to process the bankruptcy. Some unscrupulous business owners may also use a fire sale to turn assets into cash that can be moved or hidden so they can pocket some funds to recover from bankruptcy.
A fire sale can be a great way to get really good deals, especially for people willing to do a little bit of bargaining and haggling to bring prices down even further. Fire sales are often featured in the newspaper or advertised in the media because the company wants as much exposure as possible. Participating in the fire sale in the later days tends to result in better deals, although choices will be more limited.
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