(December 2, 2013) It’s that time of year again. Thanksgiving meals with family and/or friends, a long weekend out of school, deteriorating driving conditions (and drivers), and four weeks of consumer craziness.
Despite popular misconceptions in the media, the Black Friday weekend is not…
- A day in honor of the death of bank accounts, the ruining of credit, and the filling of credit cards due to overuse
- The day everyone wears black because it hides the “binge bulge,” a.k.a. Thanksgiving.
- The day retailers everywhere prepare for the worst and hope for the best.
What are Black Friday and its new Super Friends, “Small Business Saturday” and “Cyber Monday”? Answer: Bad Business.
First, the traditional arguments for the value of the Black Friday weekend…
- For many retailers, this season is the saving grace for their business. It’s the difference between black ink and red ink in their Profit and Loss statement. Isn’t that interesting?
- Marketing for one big event is easier than marketing year-round. You’ve got a very narrow target market who will respond to a very similar message. There’s an easy emotional trigger to buy. Black Friday is laser-focused rather than shotgun marketing.
- The upsell. Those in the mood to buy will be in the mood to buy more. Impulse purchases are at their peak.
But consider…
- How many purchases were made this Black Friday on DEEP discounts?
- How many businesses spent wildly on advertising in advance of the weekend?
- How many extra employee hours were paid based not on performance but on consumer demand?
- In short, while revenue is up on a weekend like Black Friday, profits are down.
I’m going to go out on a limb and say that even if Wal-Mart, Target, and Best Buy executives are reading this post, it won’t get past the cutting room floor of their next quarterly financial meetings. Instead, if you’re looking for some ideas you can use, check back and I’ll give you 5 Ways to out-perform Big Box Store this holiday season.
By business coach and Blue Ribbon News special contributor Trey Finley. Visit his website at rockwallbusinesscoach.com or on Facebook at facebook.com/actioncoachtrey.
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READ MORE FROM TREY FINLEY:
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‘I’ve got a bad feeling about this’
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