What Makes a Black Friday Deal Worth It?
Black Friday sales are everywhere. Judging by retailer ads filled with terms like “must-have deals” and “can’t-miss epic finds,” you’d be led to believe that every deal is too good to pass up.
But what makes a Black Friday deal really worth pursuing? The reduced price, availability and affordability of an item are key.
Here’s what to consider before buying.
THE ITEM SELLS AT THE BEST PRICE
Prices fluctuate throughout the year, making it difficult to determine if the deal on offer is actually the best of the best. Most people couldn’t tell exactly how much a particular air fryer sold for two weeks ago or two months ago, and if that differed from the current price.
“The things you buy every week, you notice the price going up. Where if it’s something you buy maybe once a year or not very often, like a pair of shoes, you don’t know what’s the normal price or what the price was last time,” says Martin Block, professor emeritus in Medill’s Integrated Marketing Communications program at Northwestern University.
What can you do to become a better judge? Start tracking prices now, says John Boyd, co-founder of ShopSavvy, a price comparison app. Using an app to explore a product’s price history can help you see through retailers’ marketing tactics.
“Sometimes a good sale is really hard to detect because you’re just bombarded with ‘Oh, we’ve got this super sale and it’s X% or Y% off’, and there’s no context at all” , says Boyd.
Familiarize yourself with the prices in the days leading up to Black Friday, November 25 this year. ShopSavvy and other shopping tools, like PayPal Honey, can also alert you to price drops for specific items and compare prices between retailers so you can find the best deals.
IT’S IN STOCK
Sometimes getting the freebie on your list is more important than getting the biggest discount. The 2021 holiday shopping season has proven that deals aren’t guaranteed to last: widespread supply chain issues and growing demand have led to inventory shortages and shipping delays. Many experts believe that supply problems will not be as widespread this year. However, popular items could still fly off the shelves.
“Some toys, for example consoles and some games more than likely will sell out quickly,” says G. Tony Bell, assistant professor in the department of supply chain management at Rutgers Business School. “So I would say, definitely buy early. The price advantage of buying later than buying sooner will be minimal at best.
Buying early could be the right decision, even if the price of the product you want drops significantly after purchase.
“Most stores will allow you to return or give you credit if it goes on sale within a certain number of days,” says Debra Radway, a certified financial planner and associate professor at WP Carey School of Business in India. Arizona State University.
Explore retailers’ return, exchange, and price adjustment policies before shopping so you know what to expect.
IT ADAPTS TO YOUR BUDGET
More importantly, a Black Friday deal should fit your budget. A TV in stock and on sale at 99% off is still not worth buying if the remaining 1% is out of your price range.
As Bell simply puts it: “Buy what you can afford”.
Bell warns against giving new credit for Black Friday purchases, such as credit cards or installment loans known as buy-it-now, pay-later plans, due to fees potential interest or the impact on your credit score if you are unable to repay.
And it’s a real possibility: According to a 2022 holiday shopping report from NerdWallet, 31% of holiday shoppers who used a credit card to buy gifts in 2021 are still in debt.
“Making a list of who you want to buy for the holidays and budgeting before you go shopping will really help you control your spending this holiday season,” says Radway.
However, keep in mind that it’s okay to ignore Black Friday sales altogether. Your loved ones may appreciate something homemade, like cookies or a heartfelt card, just as much as a flashy new gift from a store. And you save money. It’s a good thing.
This column was provided to The Associated Press by personal finance website NerdWallet. Lauren Schwahn is a writer at NerdWallet. Email: [email protected] Twitter: @lauren_schwahn.
NerdWallet: Black Friday 2022 offers https://bit.ly/nerdwallet-black-friday
The 2022 Holiday Shopping Report was conducted online in the United States by The Harris Poll on behalf of NerdWallet from September 15-19, 2022, among 2,075 American adults aged 18 and over, of whom 1,751 plan to buy gifts this holiday season (2022 holiday shoppers). The sampling precision of Harris online polls is measured using a Bayesian credibility interval. For this study, the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level.
Nerd Wallet. (November 2022). “2022 Holiday Shopping Report.” https://bit.ly/nerdwallet-2022-holiday-shopping-report