There is no hiding all the trouble that Dick Smith has gotten itself into and as the company’s stores near their closing dates, there's panic to liquidate remaining product stocks. The retailer’s liquidation sale has caught the attention of consumers and employees alike, because within some of their best money saving purchases, we've seen popular items like brand-name TVs and electronic cables.
If you are looking to get the best value for money at Dick Smith during this sale, you'll need to find the best way to take advantage of the current 20% mark-down on in-store products. However, if you are worried about warranty’s being upheld on these discounted products then it should be comforting to hear that The Warranty Group will honour valid claims. So while you should be able to save roughly 25% off these discounted clearance products, will waiting until closer to closing dates save you even more money?
With the end in sight, Dick Smith have to clear their stocks to recuperate losses which has lead to reductions of between 20 – 25% off retail prices so far. These lower prices may present an opportunity to save money, but the retailer’s behaviour towards customers over Christmas has most likely damaged its reputation beyond repair, meaning greater discounts are likely required before customers will choose to spend money with them again. Five weeks remain until the brand closes down all of its sores in which time it will try to sell as much stock as possible. The good thing for customers is that the receivers Ferrier Hodgson have been forced from the powers above to sell products at well below cost in order to get the job done.
To give you an idea about the pressure that the brand is under, one Dick Smith store was selling a 64.5 inch FHD TV for only $959.20 which was a discounted price of 36% from an original $1,499. The same store also had another deal on a 54.5 inch FHD TV that was selling at $559.20 meaning it was discounted by 38%, down from $899.
Choice Group, the consumer advocacy has mentioned that customers should play it safe and only consider deals and discounts on branded products such as Samsung, Apple, Sony etc., during the fire sale. The reasoning behind this is if the retailer and the manufacturer cease to exist then the customer unfortunately doesn’t have a way of exercising their consumer rights.
Whilst there may be a number of impressive discounts listed on Dick Smith branded TVs, there is also a glut of them after the Federal Court released a shipment of $1.8 million worth of the devices that were being held for a period of time in legal limbo. The Chinese manufacturer Shenzhen MTC has also heard about the Dick Smith collapse and tried to recall 17 containers filled with TVs that were shipped to Australia in January.
Unfortunately, despite all the price reductions the Dick Smith brand is still struggling to pull in the crowds at a time when it’s imperative for them to recuperate losses through product sales. My feeling is that if they are struggling now to shift stock, then as the end draws closer (end of April) prices are likely to drop to bargain-hunting territory.
A positive for customers at this stage already, is that the receivers (Ferrier Hodgson) have made a statement saying customers needn’t be concerned about buying Dick Smith products. They will offer a cash back guarantee if a product bought during the fire sale is assessed and found faulty and cannot be repaired or replaced. This policy will stand for 12 months following the closure of the business and the appropriate funds will be kept available to meet this obligation. So, if you are looking to buy some tech devices on discount over the next 6 weeks and aren’t in a hurry, it might be worth waiting to see how far the prices of Dick Smith's products drop in order to snap up an in-store bargain or fire sale discount.