Beware of Black Friday Bait and Switch – Here’s How

by Ron Haynes

blackfriday Know why they call it “Black Friday?” It isn’t because those sale items push retailers into the “black” (accounting speak for profitability). Those sale items are almost always loss leaders – items sold at a loss in order to lure you into the store in the hopes you’ll buy other, more profitable items. What really pushes retailers into the black are the profitable items you buy because you showed up at 4am and everything you hoped to buy was sold out and you HAD to buy SOMETHING (let’s call this a sunk cost).

Black Friday Bait and Switch

While checking out Black Friday ad scans, I peeked at one national retailer’s ad. Most of the great buys they’re touting have severely restricted quantities available. To a few retailer’s credit, they DO list the minimum number of items in each store but no rain-checks will be issued.

Most retailer’s advertising has similar language:

“All items in this advertisement are available in limited quantities. Sorry, no rain checks. We intend to have every advertised item in stock. However, we may not offer some items in all locations and quantity or availability may vary due to unexpected demand or circumstances beyond our control. In all cases, we reserve the right to limit quantities to normal retail purchases or one-per-customer or household.”

Some bait and switch tactics can be more sinister. Stores may drastically lower the price on slow movers. Others may feature items considered obsolete, unpopular, damaged, or returned for credit and willing buyers will snatch them up simply because it’s Black Friday.

Do YOU participate in Black Friday?

I don’t participate in Black Friday. No, I’m not a Scrooge. I just don’t relish the idea of fighting huge crowds in the hopes of buying “stuff.” Chances are high that whatever is purchased on Black Friday will become obsolete, won’t be used more than a few days (if at all), or isn’t really needed. One thing I can guarantee is that the things bought on Black Friday will never love you back (unless it’s a puppy!).

One year I did get up early just to drive around and watch the madness as a spectator. It was fascinating.

When someone would walk to their vehicle to stash their stuff, other drivers were racing each other to the soon-to-be-vacant parking spot. Many times the shopper had no intentions of leaving, only relieving their tired arms from the weight of their packages. The drivers would wait, turn signals blinking, only to realize their quest for a parking spot was foiled … again. They would speed away just a little too fast in a show of frustration.

Inside the store, shoppers were willingly herded like cattle through doors and chutes to certain areas, spellbound by the “deal.” They all carried ad circulars and previously purchased packages while speaking loudly of their plans and strategies. Some used their cell phone browsers to look up other deals at other stores, others announced their plans by speaking to “team members” (I’m assuming family) in strategic code over handheld radios with all the crispness and precision of a team of Green Berets. “Did you get the LED? What’s your location? Send Bobby to get in the DVD player line and I’ll hook up with him there. Send Hannah to either the RC toys line or the GPS line and get back with me when they arrive. Over.”

Buy only what you truly need

If the siren’s song of Black Friday is too much for you to resist, make sure you’re armed with:

  • Cash.
  • An ad circular from the store.
  • A Thanksgiving Day newspaper AND a Black Friday Newspaper (to insure you have the right information on their sales).
  • Knowledge of the store’s policies for Black Friday purchases.
  • Comfortable shoes.
  • Bottled water or a thermos of coffee.
  • Snacks?
  • Your browser enabled cell phone or tablet.

Remember: when it comes to these “loss leaders,” it really is a zero-sum game. Either the store wins or you win. You win when you buy the exact item you want at the price you want or you don’t buy at all and walk away with your cash. The store wins when you buy something else out of desperation or frustration.

Black Friday photo by teejayhanton

About the author

Ron Haynes has written 1001 articles on The Wisdom Journal.


The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.


If you enjoyed what you just read and would like to get FREE email updates with the freshest articles from The Wisdom Journal delivered right to your inbox, subscribe today! It's ridiculously easy and you can unsubscribe at any time. Since your email address is never sold or abused, you can subscribe with confidence, PLUS you'll get free reports/guides/eBooks, subscriber only benefits, and other perks.


{ 9 comments }

Peter

I don’t usually go out on Black Friday, but when I do it’s only for something that we “need”. Like a few years ago – our home audio receiver had died on us, so I went and bought a new one on Black Friday for less than half the normal cost. Of course I didn’t buy anything else.

This year I need some new tires for my car, and I’ve found some good deals on tires that will allow me to save $120 on Black Friday on the set of tires I need. So why not!

As long as you only shop for what you need, and don’t fall prey to the rampant consumerism of the day -I think you’ll be fine. :)

Steve |MyWifeQuitHerJob

I used to go out every black friday and always came home with a bunch of stuff that I never used. These days, you have to fear for your safety as well which makes it a no brainer not to go out anymore.

Ron

Yeah, especially after that security guard was trampled last year.

Financial Samurai

I REALLY feel bad for the consumer who has the mentality of “spend more to save more.”

I have so many corporate retail friends who are just salivating to dump their inventory on consumers for a hefty profit.

Stand strong consumers and don’t go CRAZY this Fri!

Credit Girl

I’ve never been to Black Friday but I’m really looking forward to going this year! Do you think it’ll still be just as crowded as every other year or do you think the crowds may dwindle due to the economy? I will definitely be checking out store ads before so I will know what is available to me.

Ron

I really don’t think the crowds will be THAT much smaller. There are too many expectations for Black Friday. People may spend less, but I think that’s just a function of the lower prices retailers will be offering.

L Rob

I don’t think that great deals are only offered on Black Fridays. If people will only look for it, I’m sure they can find a great deal on TV or gadget that’s not on a Black Friday.

It’s the media hype. News, articles, promotional items distributed, that’s what make people go crazy when Black Friday comes. Even if you don’t need anything, you get to need to need something coz of all the glossy photos and seemingly low prices.

And no, I’m not a scrooge. Just not into the Black Friday madness anymore.

TWJ

I’m pretty tired of Black Friday as well. I’ll be glad when America collectively comes to it’s senses, and puts all the consumerism madness behind it. I’m not holding my breath though…

L Rob

You’re right TWJ. Looks like consumerism is here to stay, recession or no recession.

Previous post:

Next post: