It is the time of the year again when shops are filling with sales signs, people have made lists in anticipation of what is going to be on sale and hoping to find the best bargains for Christmas presents or in clothes and technology. In the USA people are going crazy and hurting themselves when pushing into the shops to be the first one to get the long-awaited bargain and in the UK people are browsing through the Amazon deals finding what they think are treasures. Mostly this is just the start of the stressful time before Christmas and we could argue whether sales and high expectations for Christmas are making the time ‘less wonderful’. I have to agree that every year I do check the Black Friday deals, but somehow none of the sales have so far enticed me enough to buy something, or I am just too late and the deals are already gone.
Lately, been more involved with small businesses I have come to see sales and especially Black Friday as the villain of the retail and quality products. There are numerous articles on why Black Friday is not really benefitting the retail industry, but of course not quite as many as ‘find the best bargains on Black Friday’, unfortunately. Black Friday, however, is not a problem only for retailers but for the consumers and for our environment as well!
The Sale Is An Illusion
It is widely known that retailers either raise the prices during a previous month to make their sales look good, or inflate the “original price” on the add or the tag for the product making it look like a bargain. Actually, this tactic is used outside of Black Friday all the time. Have you noticed how prices on your favourite products at Asda jump up and down weekly and sometimes the sale price isn’t actually lower than the products price on a month before?
What is less widely known is that brands manufacture items specifically for Black Friday items with a far poorer quality to make up for the sale tag, especially within the technology sector. It generates additional waste and requires more cheap labour. This phenomenon is also seen in discount retailers such as TK Maxx to which brands manufacture a specific lower quality product.
Of course, there are some genuine discounts during Black Friday as well, however, in the mids of all the other falsified discounts they might be hard to find.
Small Business’ Suffer
We can already see that small business’ have trouble competing with big brands pricing. I’ve heard numerous times how small business product prices seem too high for the conventional consumer. So when the big brands lower their prices it provides an uncomfortable pressure for the small brands to lower their prices as well to be able to compete.
Although Black Friday is meant to be only one day many brands and retailers, have extended their sales for a weekend or even a week. Now Amazon made it for the whole month!
Small brands generally don’t make the same profit as big brands from the items sold, as production costs are much higher for locally made items or those made in small batches, so discounting any items will probably end up in them losing on profit altogether.
If small brands do not discount their prices they are likely to miss on any product sales as customers pass them on their way to the sales shelves and racks.
Our culture seems to think it is always appropriate to have a sale. For example, Etsy, which is known to be a marketplace for small brands and which should support them, sends emails before Christmas or sales period advising sellers to discount their items.
It Is Not Necessarily Better For The Economy
People often have “sales goggles” on when shopping during Black Friday which results in a lot of returns afterwards, where products have either been faulty or suddenly people realise they don’t need the products that they thought they were craving for.
Although big brands might sell a lot during Black Friday and other sales events advertising and returns might not make this event any more profitable than any other day.
In preparation for sales seasons, some brands keep their prices originally higher so that they won’t make a loss during the sales periods, therefore, raising the product prices. Could this be avoided if we didn’t have sales periods and rather have slightly lower priced items all year round?
What We Could Do To Support A More Sustainable And Economical Trade
Instead of trying to get the best bargain we could just keep supporting the small brands with their fair prices. This will support the brand and the local economy.
The modern understanding for Black Friday is that it is the start of the shopping period for Christmas and is a completely commercial marketing tactic, so to not be swept in the craziness you could just not shop on those days.
What do you think about Black Friday and other sales events?