Don't Fall for These Misleading Holiday Deals
At one point Black Friday was just that – a single Friday in November with some seemingly good deals on stuff you might want to purchase.
We're way beyond that now. The modern Black Friday is really Black November, with a solid chunk of December and a dash of October thrown in for good measure.
Despite what retailers around the nation would like you to believe, Black Friday isn’t a holiday – it’s a marketing ploy. Black Friday is not an act of generosity from your preferred big box stores and online retailers – it’s a full out assault on your bank account.
Now in fairness, there are good deals out there. And if you love the experience of Black Friday shopping, there's no reason you can't maintain your annual shopping traditions.
That said, there are some deceptive offers out there. As long as you can identify and avoid these "deals" you can shop with a bit more confidence.
Doorbuster deals
Retailers routinely offer outrageous, can’t-pass-it-up deals on hot new items in order to get consumers through the door, but those retailers are under no obligation to have very many of those items on hand. These "doorbuster" deals are meant to draw a massive, deal-hungry crowd. Retailers are willing to take a loss on those few pieces of select merchandise knowing that the consumers who miss out on that great deal will very likely buy something else.
If you must leave the house at 3am in search of those unmissable deals, make sure you’re willing to walk away when you find that the item you wanted sold out before you even got through the door.
Big markdowns
Your excitement about a potential deal is usually proportional to the percent of the markdown. You’re not getting out of bed for 5% off, but what about 70% off ? People sleep on sidewalks for those kinds of savings.
The problem is that those savings are regularly inflated. If an ad claims that you can save $100 on a laptop for example, be sure to check out the starting price. Retailers often use the highest price an item has ever been – not what the item is right now. They may also inflate an items price briefly before the sale period to make the markdown look that much more impressive.
It's important to comparison shop and verify how much an item is selling for elsewhere. You can use price tracking sites like camelcamelcamel to see how much the price of selected items has risen or fallen over the previous months. It's a great way to see whether that massive discount is really as impressive as it seems.
Second rate merchandise
Black Friday and similarly "shopping holidays" often create a sort of shopping mania, where customers see appealing price tags and make quick decisions without considering other factors. You see a really cheap TV – boom – you buy it. That blender is practically free? Boom – purchased.
Unfortunately, even an extremely cheap item may not be worth what you pay for it. The deepest discounts on Black Friday and beyond are often for lesser quality items; either older models that retailers are looking to ditch anyway, or low grade items made specifically for deal-hungry Black Friday shoppers.
Do yourself a favor and do your research beforehand. Figure out specifically what you want and stay focused on getting those items and those items only.
Incentives to buy more
Which consumer group is the most likely to buy your products? The ones that have already bought something. Once someone is in the process of purchasing something, there's a huge window in which retailers can potentially increase the size of the purchase.
You see this all of the time. It may be a "buy three, get the fourth free" type of offer. It may be a free shipping purchase threshold. It may be a bundle deal or the offer of a "free" gift.
No matter the shape of the offer, the goal is the same: to get you spend more money.
When confronted with these types of deals, try to slow down and consider the cost versus the benefit. How much are you saving? Is the incentive worth the additional costs? Don't let you excitement cloud your judgment.
Limited time offers and short sale windows
Amazon may be the king of pushing your consumer buttons, leveraging tons of data and purchase history to encourage you to make purchases with hardly half a thought.
One especially visceral tactics is the use of a countdown clock to show you just how little time you have left to take advantage of a deal. Do you really have time to do research when that air fryer deal ends in 45 minutes?
It's completely natural to let the urgency of a limited supply or rapidly ending sale drive you to make a quick decision, but try your best not to be taken in by these kinds of tactics. Take your time, do your research, and make sure you're spending the right amount of money on the right products.
Don’t let yourself be hypnotized by low prices and deep discounts. There are certainly deals to be found, but you have to wade through many, many more false deals to get to the good stuff.
Need help sorting out your post-holiday budget? MMI can help you review your debts, income, and expenses, and build an effective plan that makes your financial goals a reality.
