What is a Fire Sale? By Ronald J.

Pawley A fire sale, also known as a blowout and closeout, occurs when the owners of a p roperty conduct a massive sale in which much of their inventory becomes availabl e at significantly reduced rates. In many cases, consumers can acquire goods at lower-than-wholesale costs because sellers want to eliminate stock quickly and e fficiently. Insurance companies sometimes pay for damaged goods, so finding buye rs for the lesser-quality items enables policyholders to supplement their income . The term fire sale came about because this type of deal was generally available follow ing an actual fire. Many objects would be damaged or smoky, but still usable or salvageable. To make room in their stores, shopkeepers would offer these items a t drastically cut prices. Today, a fire sale can be used for a wide variety of c ircumstances, ranging from flood damage to asset liquidation. About the Author: Ronald J. Pawley is a retired Executive Deputy Fire Chief of the Kodak Fire Depa rtment. In 2001, he received a request from the Church of the Master in New York to sit on its Board of Trustees. After accepting the position, Pawley recognize d the church s poor financial situation and performed a successful fire sale.