Is Black Friday worth it? A financial guide

Originally a U.S. post-Thanksgiving shopping event, Black Friday has transformed into a global retail frenzy. The promise of huge discounts and exclusive Black Friday deals excites people’s minds from all over the world. 

Savvy shopping requires smart financial services, like we have in Genome, to optimize spending during sales and get the best deal on Black Friday. Find out more in the article below. 

Understanding Black Friday deals

A Black Friday deal is a time-limited discount that allows huge savings from the original price. These deals are often heavily advertised, targeting high-demand products to attract as many people as possible to make holiday sales. Black Friday takes place after Thanksgiving. Last year, it was November 24, and this year, Black Friday comes on November 29.

However, retailers slashing prices is not always a good thing. Sales vary widely – from really great bargains to misleading discount prices, making it essential to compare those with previous price points if you want a good deal.

Black Friday sales are often associated with so-called popular Big-Ticket items like electronics, kitchen appliances, or cars. Nowadays, this term includes a huge range of discounted goods.

Many retailers often count on impulse buying: a combination of a low price and a “limited-time-only” tag encourages customers in urgency to get the item as soon as possible. 

The other tactic a store can use for discounts advertised is bundle offers – a set of discounted products to which retailers add full-priced products that don’t sell well when not on sale. 

One of the worst scenarios is heavily discounted, super-overpriced products. Flashy, percent-off promotions are popular, drawing attention to heavily discounted items. But behind this drastic price drop may hide artificially raised prices just before Black Friday. In this case, only price history may help or if you keep tabs on market prices.

The psychology behind Black Friday sales

Nowadays, people are questioning how advertisements even work. Let’s see how they may influence shopper behavior on Black Friday.

Black Friday ads strategically tap into the excitement of “exclusive” deals and money savings. The bold messaging, holiday themes, and promises of “biggest sales of the year” can and will trigger emotional responses, making customers feel like they are a part of something special. For many, the Black Friday weekend has already become a part of Christmas shopping. 

And, of course, there is an impact of the ‘limited-time offers’ on consumer money spending. The fear of missing out (FoMO) plays a major role in it, and many retailers use it when setting low prices.

Limited-time offers create a sense of urgency, pressuring consumers to buy before deals vanish. It is simple but very effective. Not many people want to wait another year to get something they desire when seemingly good deals are involved during holiday shopping.

How to evaluate if a Black Friday deal is worth it? 

Analyze the discounts. Start by looking at the sale price versus the item’s regular price. Also, check if the item’s price was recently inflated—some stores raise prices before Black Friday to make discounts seem much bigger. If a real discount is less than 10%, maybe it is not worth it at all.

Do not forget about the additional costs. Those include shipping, taxes, and other fees. Be aware of those because some stores offer attractive prices but add high shipping or handling fees. Always calculate the final price before paying money for it at the store.

After all of this is done, you can finally understand the real cost and if the sale prices are good.

The easiest way to do it is through special apps that help track price changes. Those reveal if a discount is genuine.

To navigate Black Friday deals and sales, you also need access to a current account, preferably a multi-currency account, to save money on international goods in different currencies. Genome’s multi-currency accounts support EUR, USD, GBP, PLN, CHF, JPY, and CAD. You can also link your Genome cards to all accounts in these currencies except JPY and CAD.

Is Black Friday worth It for Big-Ticket items?

When it comes to Big-Ticket items, there are two major shopping tips you need to consider.

1. Analyze the projected savings on electronics, appliances, and other high-value items.

Big-Ticket items like electronics and home appliances often see substantial markdowns during Black Friday, but these deals may not always be unique to the holiday.

If you are a retailer, Black Friday is the best day to get rid of some unpopular products or products with warranties that come to an end. For many people, the low price outweighs this con. Still, you should definitely check out reviews and price history of a product you want before buying it.

2. Take into account long-term value and warranties.

When buying high-value items, prioritize longevity and support options, such as extended warranties. A reliable brand will also increase confidence that it is worth shopping for. These extras can increase the item’s value, helping buyers avoid the cost of future replacements or repairs.

Mistakes to avoid on Black Friday 2024

Some common financial mistakes can occur when shoppers make purchases during Black Friday.

Impulse buying. Most retailers will likely offer huge discounts, which may be very exciting during a holiday season, but they commonly lead to unplanned purchases. Avoid this issue by using a pre-made shopping list of items you need or paying with a debit card that allows setting spending limits, like in the case of Genome’s cards.

Ignoring the price comparisons. Check the history of previous prices for your desired items to avoid false discounts. Also, checking current prices across multiple stores will be wise if you want to find the best deal on the Black Friday season.

Overlooking return policies. Some Black Friday purchases have limited returns. Thus, if you have bought something on impulse, you can’t return it. Always check the return policies carefully and try other retailers if you don’t like the conditions.

Forgetting hidden costs. Shipping, taxes, or any additional fees can be a big trouble for your savings, even with the lowest price for a product itself. Don’t forget to calculate the full costs before buying. Same-price items can end up having different costs because of this, and you will regret the purchase the following Monday.

Stay safe. Last but not least, you need to make sure that you pay securely, especially when it comes to online purchases. Phishing links and fake websites are prevalent, so avoid opening suspicious emails or clicking links in them from people and online retailers you don’t know. Watch for red flags like misspellings, strange URLs, or limited contact information, and stick to trusted websites for shopping.

Also, to be safe, ensure that you use virtual and physical cards that are protected with multi-factor authentication. Such a precaution greatly negates the probability of fraud during online and in-store shopping.

Looking for secure Visa debit cards with 2FA that allow you to track every payment and set spending limits? You can easily issue them at Genome! Start a personal or a business account, order cards, and shop with ease this Black Friday sale, during the Christmas shopping season, and on any regular day. 

Key takeaways

Smart Black Friday shopping means looking beyond flashy ads and sweet prices and focusing on genuine savings. Always keep track of pricing changes before Black Friday hits, and check warranties and return policies. And, of course, shop using secure Genome virtual and physical debit cards. 

FAQs

Is it better to buy before or after Black Friday?

In most cases, Black Friday is a great opportunity to get the best deals. Sometimes, pre-Black Friday sales and early deals offer comparable discounts. Many stores start offering early Black Friday deals in the weeks leading up to the holiday. These “early access” deals can provide comparable discounts and save you a huge amount of time and money.

Are there any benefits to Black Friday?

Yes, Black Friday often offers lower prices on high-demand items, providing budget-conscious shoppers the chance to buy quality goods for less. Because it is one of the biggest shopping events, you can get the best bargains on electronics, fashion, home goods, or any other products this weekend.

What are the best strategies for comparing prices on Black Friday?

Your best bet is to research the item’s usual price history and decide, based on timing and discount availability, whether it is worth it. Price-comparison tools and pricing tracking instruments with special apps will be handy. These tools help confirm if a discount is genuine on the same-price items or if you could find the cheapest price elsewhere.

Can I get Black Friday deals on Cyber Monday?

Yes, Cyber Monday often includes similar or even better deals, especially online. Some retailers extend Black Friday discounts throughout the weekend, so it’s worth checking both days for the best savings.