The one day of the year 90% of businesses lose their minds and offer their services at ridiculously low prices in hopes of attracting the masses to buy from them.
And why that mentality is wrong!
These businesses have done such a lousy job of marketing and building trust with their audience the other 364 days of the year…that their Black Friday deal screams desperation.
I wonder how many BIG stores will be filing bankruptcy when they discover their Black Friday sales were dismal?
Sears? Kmart? JCPenney? Bon Ton? Charlotte Russe? Claires? Gymboree? Neiman Marcus? Nine West?
So how many entrepreneurs lowered their prices in hopes of generating some extra sales today?
And the day after Black Friday I’ll be wondering…
“How did it work out for you?”
“Were the sales from new customers or existing clients?”
“From valued clients or pain in the ass, you should have remembered to take them off your list rejects?“
The reason I ask…I’ve found though the years asking hundreds of entrepreneurs those same questions, the ones who take advantage of the sales are typically clients that have been problematic in the past or would have hired you anyway at your normal non Black Friday pricing.
So in essence, the goal of trying to gain new clients by offering a Black Friday special is defeated and you invite back PITA (pain in the ass) customers or give a discount to those who gladly would have given you more.
———— Updated November 2018 ————
I wrote the above article the day after Black Friday November 2017 and as of the day after Black Friday November 2018 – Sears, Nine West, Clair’s, Bon Ton, Toys R Us, Remington Outdoors, A’gaci, Kiko USA, Bertucci, Southern Grocers, Tops Markets, Brookstone, National Stores, Mattress Firm just to name a few had all declared bankruptcy. Notice some of the names that match what I mentioned from last year.
If you are going to offer a Black Friday special make it something they can’t get through out the year. Maybe a special bundle package that is only available for 1 day. The problem is the planning. Most companies don’t want to be bother trying to come up with a special bundle so they just use gimmicky discounts that don’t drive the right people into their stores.
And, these stores sadly don’t collect email addresses or anyway to track the customer so as to remarket to them again. So, they are offering discounts and specials to people they may never see again or to customers that would frequent their stores anyway.
My predictions of stores declaring bankruptcy in 2019 include…
J. Crew, Neiman Marcus, JC Penney, GNC, 99 Cents Stores, Piers 1 and Office Depot.