Buyer beware! Those going-out-of-business sales may not be as good as you think.

The logos are the same and so are the products, but these stores are now operated by liquidation companies appointed by federal bankruptcy courts. The signs boast sales and say everything must go. Some customers told us looks can be deceiving.

"I don't think things are marked down enough," said Cindy Gilmer, shopper.

Gilmer shopped the Linens 'n Things sale at the Gateway Shopping Center in North Austin. She noticed the price tags were altered.

"They either take the prices off the item, or scrape the price off the shelving so that you're not quite sure what the price was. There were a couple items that looked like there were clearance stickers to begin with and now they've taken the clearance stickers off and charging full price," Gilmer said.

ABC News also shopped at Linens 'n Things -- now owned by six different professional liquidators. On product after product they peeled back the surface price tags to reveal the old prices below. For example, the surface price tag on a Calphalon saucepan said $124.99. But the one underneath said $109.99. Rachel Ray cookware was $199 on the new label, $179 on the old.

In Cedar Park, Raymond Resa left the Circuit City store closing sale with buyer's remorse.

"There wasn't a price on the shelf. When I went up there I was expecting a better deal that was given to me. I should've done my homework a little more," Resa said.

Like Linens ‘n Things, the Circuit City store is also operated by a liquidation company.

The Better Business Bureau has this warning for consumers, “Liquidators rarely sell merchandise at a loss, even near the end of the sale. There are other ways to sell it off, like to overseas markets hungry for merchandise. So rather than trying to empty a store to the bare walls, going-out-of-business sales are more of a play upon human psychology," said Marylee McKnight, Austin Better Business Bureau media coordinator.

Hilco Merchant Resources -- the agent for some of the Linens 'n Things and Circuit City stores -- told ABC News "Federal and state laws exist to guide liquidators in going-out-of-business sales and they abide by these laws in every respect."

"Of course they're going to have a plan because they want to make money, but it made me think twice before coming to another going out of business sale," Gilmer said.

This is the response from The Hilco Organization Executive Vice President Richard L. Kaye:

"The liquidators do not "own" the stores being closed. In fact, the liquidators are agents appointed by a federal bankruptcy court. Liquidators take on millions of dollars in financial risk for the benefit of the bankrupt retailer's creditors. Several quotations from consumers created the impression that liquidators manipulate marked prices. Not true. As has been reported, some items in some stores being closed may have had a label with a higher price affixed over a label with a lower price. This is not the liquidator's doing. In all probability, the price stickers with lower prices were from a clearance sale held by the retailer weeks or months before the liquidator ever became involved. Instead of removing the old labels when the sale had concluded and replacing them with new ones carrying the regular selling price, store employees simply covered over the old labels. The liquidator does not mark-up prices and put new price stickers on products before applying its discount. To be clear, the liquidator works from a schedule of prices provided by the retailer. These prices are in the retailer's computer system and discounts are applied to those prices. By the way, if a price in the retailer's computer system does not coincide with the price physically displayed on the product, the liquidator may restore the price to that which is in the system. However, in almost every instance, the liquidator will honor the lower price for the consumer if there is a discrepancy between the product price label and what is in the computer system. "

This is the full statement from the Austin office for Better Business Bureau:

Going Out Of Business Sales May Not Be Such A Bargain

What many people don't realize is that outside liquidation companies run most going-out-of-business sales. Their job is to get as much money as possible for the inventory. For these companies, going out of business is a business.

The liquidators come in before a going-out-of-business sale and raise all prices up to the regular selling price. Then they discount from there, starting with small percentages off and deepening the discounts as the sale goes on.

Liquidators have less leeway than regular retailers in pricing their products because they have no factory-to-dealer incentives to fall back on. In other words, when manufacturers are trying to get their products onto store shelves and gain market share, they may discount the price they charge to retailers or provide factory rebates. Retailers can then advertise those rebates and pass the savings along to customers. Liquidators don't have options like that because their store is not going to stick around.

Liquidators rarely sell merchandise at a loss, even near the end of the sale. There are other ways to sell it off, like to overseas markets hungry for merchandise. So rather than trying to empty a store to the bare walls, going-out-of-business sales are more of a play upon human psychology. Liquidators often try to take advantage of that excitement by bringing in extra outside goods that were never sold at the store that is closing.

BBB Tips

It's not that you can't get good deals at going-out-of-business sales. You can. Just don't assume the prices are lower there. You need to shop around as you would with any other purchase.

Sometimes competitors that are not going out of business will drop their prices to compete with the liquidation sale, so check them out too.

And keep in mind that the discounts get deeper as the liquidation sale goes on, but the merchandise gets thinner too, so it's a balancing act.

-- Marylee McKnight, Media Coordinator