Black Friday: marketing tips and four ways not to crack

Black Friday is on us, again. The annual ritual of transactions marks the beginning of the Christmas shopping period. Retailers hope to erase their old stocks to make way for new lines, specifically designed to take advantage of Christmas spending and thwart the fall in November sales. Buyers are hoping to find a good deal.

But the extent to which people actually save money on Black Friday is highly questionable. It is important to know the tactics used by retailers to avoid spending too much or buying something that you will regret later. Prices and deadlines are manipulated to maximize the purchases we make. It is therefore essential to keep in mind what you really need or want, as well as your budget, to survive the shopping season without spending too much.

Black Friday often takes place in secrecy: buyers do not find out what the offers will be until the date is too close. This allows retailers to adjust their prices more quickly, based on factors such as competition, market and consumer craze for different items. It also means that it is more difficult for buyers to be savvy. This eliminates much of the planning time necessary for buyers to make an expensive purchase and forces users to make purchasing decisions faster than normal.

Buyers cite lower prices as the main reason for buying Black Friday. But it only makes sense to take advantage of lower prices if you still buy something you intend to buy. It does not happen often.

When they spoke to buyers about a larger research project I had done on the loan, they told me about their expectations for Black Friday sales and explained how much Anticipating the reduction of goods was exciting, but often derailed an otherwise sensible Christmas shopping plan. The main problem was that they did not know what would be reduced and were therefore unable to integrate this into their long-term financial planning.

More than half of those who participated in the research reported that they had prepared lists to control their spending during the Christmas period. However, 80% of them said they bought Black Friday products that did not fit the Christmas agenda. Instead, they were bought on an impulse motivated by the belief that it was "a good discount". Research has focused on the fact that buyers would make (or fail to make) purchases based on the potential impact of these changes on their mental state.

When we shop, we think (sometimes unconsciously) about the emotional consequences of our purchases. If you buy something and you regret buying it later, it is what is called the remorse of the buyer. As part of the human condition, we are programmed to try to avoid negative emotions like regret. But it was also clear in my research that people also suffer from FOMO while shopping – the fear of missing a bargain.

With regard to Black Friday, the pressure of a limited time sale means that we often do not have enough time to decide if we should really buy something and that the inner struggle to avoid remorse of the buyer and the FOMO is accelerated. That's one of the reasons we make impulse purchases – because retailers force us to make a quick decision.

These emotions can increase when other factors are taken into account. My research has highlighted the fact that when consumers are already in debt, the situation is particularly problematic. This adds extra stress. The product may not have been considered before because it was too far from the price range of an indebted individual. But, with a significant discount, this brings the product closer and makes it much more tempting – even if it still exceeds its resources. Many high-cost credit providers are taking advantage of this time of the year to provide cash quickly to close this gap.

Under the pressure of spending on black Friday and the summit of the coming weeks, here are four practical ways to help you manage your expenses:

1. Make a list

Plan the items you want to buy for yourself and for others at Christmas. Stick to this list. Only allow room for maneuver if this purchase is comparable and allows you to strike an item off this list.

2. Make a budget

Hold fast to what you can and can not afford. If you need to borrow money, look for the best interest rates and clearly describe the repayment terms.

3. Make a pot of black Friday expense

If you know that you are sensitive to impulsive purchases at Black Friday, plan ahead. Set up a separate savings account that you can add throughout the year or use an informal method at home. There are many ways to save; use a regular saver if you can make deposits every month (these tend to have good interest rates), or have a container in the house to deposit the small coins in your purse at the end of each week.

4. Take the time

Retailers rely on you to shop to avoid remorse from FOMO or the buyer. Unless you are very confident, it is better to exclude decision-making. Savvy shoppers in the UK say they can find better deals outside the Black Friday period, using price comparison sites and shopping research. This removes the stress of the time-based offer and gives you time to consider your options (and if you really want to buy something in the first place).

Explore further:
Psychological differences between those who like and those who hate shopping at Black Friday