That doesn't really make sense, why doesn't Circuit City do what the trading companies are doing but cut out the middle man ? After all Circuit City's stores s

That doesn't really make sense, why doesn't Circuit City do what the trading companies are doing but cut out the middle man ? After all Circuit City's stores should be a fine "established channel". And why would the trading companies by from Circuit City when they could contact the manufacturers directly ? I don't think there is a rational reason involving trading companies or some other established channels for Circuit City's pricing; instead, consider the possibility that Circuit City is run by idiots. Occam's razor dictates that idiocy is more likely explanation here. It also is consistent with the reasons they are going out of business in the first place. That said, I also suspect that there is a large downturn in consumer buying, and it might shake out even retailers that aren't run by idiots.