Black Friday comes immediately after Thanksgiving, which is celebrated by Americans on the fourth Thursday of November. On this day, grand New Year sales start and the shopping season begins. On Black Friday, stores start working incredibly early – some open their doors at 5 a.m., others at midnight. The first customers are offered discounts of up to 80%, and therefore people line up outside the store long before Black Friday. The main task of every retailer is to attract as many customers as possible to the store.
In uk, the first day of grand sales was held on December 6, 2013. managing to take root in our country. Already in 2023, online sales amounted to 15 billion rubles. In 2019, online sales reached 22.3 billion rubles.
What is Black Friday – essence and origin
What does Black Friday mean?
There are many famous “black” days in history, but the most famous after the legendary selling day is Black Thursday when two economists crashed the stock market. According to legends, the color scheme has nothing to do with tragedies and crises. Friday was called “black” because on that day the entire city was in smog coming from thousands of cars that came to buy promotional goods. According to the second version, it is simply the habit of Americans to mark business accounts with colors: red for loss, and black for profit. Due to the high volume of sales, many retailers went from red to black in just one day.
A more traditional and down-to-earth version:
is the easiest opportunity to clear warehouses and store shelves of products that are not in demand. This will free up space for winter and Christmas items a month before Christmas. Immediately after Thanksgiving, this inventory sold out quickly at very low prices. Initially, only one day was allocating for sales, but then the discount period increasing and now ranges from 4 to 10 days.
How retailers around the world make money
The secret of great discounts in the USA and Europe lies in a well-developed strategy and teamwork. Not a single retailer arranges sales at a loss because these same discounts are paid in whole or in part by the manufacturer of the goods. For example, during a sale, you can buy a TV for $399 instead of the standard $699. The electronics manufacturer helps the retailer pay for this Black Friday Coupon Code discount, so the retailer pays only 50% or nothing at all.
Well, the second benefit of entrepreneurs is the sale of liquid goods. There is nothing worse than a product that took money and did not sell. The retailer simply does not have the funds to purchase new products, which leads to a drop in sales and income. A sale helps you get rid of dead weight and get your cashback.
Why do stores participate and not go into the red due to sales?
How do sellers benefit from Black Friday and why do they not suffer losses from big discounts? The thing is that retailers use sales as an opportunity to attract a large number of new customers. At the same time, they offer relatively low prices for non-liquid and seasonal goods. That is, why would a store store swimsuits in a warehouse all winter and autumn, despite the fact that new fashionable models will appear next year? Of course, it is more profitable for them to sell seasonal goods with less markup and receive revenue for new purchases.
Also, many people wonder what is the benefit of selling expensive equipment at a low price. The basic idea is to entice the consumer with a tempting offer, and then sell him related high-profit products at regular prices. High markup on related products covers the discount on the main one.
As for clothing stores, retailers often make large purchases and receive good discounts from manufacturers. Consequently, they can set prices in their stores lower than usual. Also, often a manufacturer wants to get rid of excess inventory and offers retailers goods at a low cost, which again allows retail stores to organize sales and thereby attract new customers, increasing brand awareness.
The truth is, for many major retailers, Black Friday sales aren’t a big deal. First, they increase the price, making an artificial markup, and then decrease it, returning to the true cost. As a result, on the day of sales, they sell the goods at the planned or even slightly inflated price.
Benefit Store
Sales are the easiest way to win the loyalty of existing customers and attract new customers. Here are the top 5 benefits of Black Friday for retailers:
No. 1. Attracting new customers. If you attract shoppers on Black Friday, you can increase sales during the New Year and throughout the following year. If people love your store and continue to buy full-price items there, it will make the Black Friday discounts worth it.
No. 2. Tell or remind about yourself. In a highly competitive environment, it is difficult to attract attention. In order for people to notice a new store and appreciate its benefits, you need a bright, enchanting holiday with big discounts and super offers. If few people know about your store yet, Black Friday is a great chance to loudly make yourself known and lure customers away from your competitors.
No. 3. Rapid sales growth. A sale is the best way to dramatically increase sales volume, increase the average check, and with it revenue. This is excellent insurance against low sales during the dead post-holiday period.
No. 4. Motivation. Black Friday with huge discounts motivates people to buy a product that they have long wanted, but constantly put off until later. A good discount motivates you to buy something you haven’t gotten around to buying for a long time.
No. 5. Get rid of slow-selling goods. Every entrepreneur has “dead weight” in their warehouse that has eaten up money and brought no profit. is a great opportunity to sell off items that are sitting in stock. Finally, cash will return to the cash register, which can be spent on buying a new product.
Sale – fast promotion and increased sales for retail business. But they are beneficial only to entrepreneurs who set a high markup on goods.
RECOMMEND:4 Cryptocurrency Trends to Watch for in 2023
