Desperate oriental rug stores have a history of advertising fake going-out-of-business sales. Here is an article from the Indianapolis Business Journal.
Phony going-out-of-business sales long have plagued Oriental rug retailing here and across the country, dealers say. The industry is susceptible because Oriental rugs can cost thousands of dollars, and many consumers lack the expertise to judge whether a rug’s quality matches its price. That frequently makes the lure of huge markdowns effective, especially when the discount is off a grossly inflated original price.
2 responses so far ↓
1 Richard J. // Mar 11, 2008 at 11:24 pm
stores do this all over the US. not just carpet stores
2 Dave // Mar 12, 2008 at 1:33 pm
Although there are certain laws and regulations to prevent this type of business practice, there is a tremendous amount of bureaucracy one must go through in order to hold those accountable.
One of the worst aspects of this practice is not so much from the competition perspective (in regards to other more honest local stores) rather the tarnished reputation these “in and out” sellers leave behind.
Consumers purchase this inferior goods, often trucked onto location for the “going out of business sale” post announcement, and get taken in by all the marketing. The seller adds to their inventory for the sale rather than depleating it.
Once customers have realized they purchased a bad rug, the seller is long gone. Who’s to receive the blame? Honest people in the business take the brunt of these fly by night practices.
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