You have already seen hundreds of Black Friday ads everywhere. Black Friday this, Black Friday that, Cyber Monday offer, Cyber week offer... you name it! It's true that on this day, you will find some great offers... if you are one of the few lucky ones. But chances are you won't be. So, why all this craze about Black Friday? Is it really worth the buzz?
Most buyers are not happy
Black Friday (and Cyber Monday) is traditionally the day (or the days) where you buy gifts for family and friends. But not all merchandise is on sale. In fact, most retailers are deep discounting outdated products taking space in their distribution centers. Products that otherwise would have stayed there forever, or products that would be deeply discounted anyway at some point, to get rid of their stock. At best they will offer a small discount to brand new or popular products. But if you wish to have your order shipped in time for Christmas, you will have to pay for Express Shipping, that will eat up almost all the discount you got.
Moreover, most buyers are left at the end of this with just a few dollars (or whatever currency you are paid) or even at debt.
Honest shop owners are not happy
Offering deep discounts means one thing: low or inexistent gross margins. A shop offering discounted products is making sales, but is not making profit - at least not as much as it would make any other day.
If the only expense was any discounts offered, this would not be a thing. Each shop will spend hundreds or even tens of thousands of dollars to advertise on social media and search engine platforms. For honest shop owners, this week is a financial nightmare. A gamble that may leave them in huge loss, rather than profit.
So, who is happy with Black Friday?
Obviously, the dishonest shop owners. Those who are taking advantage of the gift wrapping to sell their buyers 'not as described' products, or those who are inflating their prices only to show they are offering discounts, or those who won't accept any returns, because December 27th - the last day they are legally obliged to give you your money back - is Sunday, leaving you with a crappy product, you never intended to buy.
Advertising media and platforms love Black Friday. A large part of their revenue is achieved on or around and because of Black Friday. It is really them who sold the Black Friday concept to the shop owners.
Do yourself a favor this year: do not buy any presents this week. Get your kids gift cards or gift certificates, and let them buy whatever they like, on their own.
