Black Friday is lauded as the best time of the year to save on purchases. But are you really saving? Or is it all a ploy to drive more consumerism?
The history of “Black Friday”
The history of Black Friday actually has some pretty dark roots. The term “Black Friday” was coined in 1869 during a gold market crash where people lost everything they had. Then, in 1961, “Black Friday” was used to describe the chaos of the day after Thanksgiving in Philadelphia when shoppers and out-of-towners would start flooding the city in anticipation of the Army-Navy football game held on Saturday each year. On that particular Friday, police officers were banned from taking that particular day off, because of crowds and the increased crime it caused. It wasn’t until the 1980’s that “Black Friday” was reinvented into the more “positive” retail marketing scheme that it is today. It is the time of year that is said that retailers begin turning from the red to the black on their financial statements as well. But, is it really positive?
The problem with “Black Friday”
In a nutshell, Black Friday overly promotes consumerism, and as a personal finance junky, I have issues with over-the-top consumerism. I especially don’t like seeing people who are in debt or far behind in savings, being drawn in by the lure of a “good deal.” The irony of this coming from me is that I’m a Marketing Director who has spent the past two decades persuading people to buy things. However, the products I have chosen to market over the past 13+ years are services that are a need vs. a want, and today I use my skills to improve the health and well-being of people. But, as a marketing professional with an MBA in Marketing, I have studied consumer behavior and behavioral economics (aka the art and science of getting people to do what you want them to do). These are the same antics that retail marketers use to reel in consumers.
People get so caught up in the shopping frenzy that is Black Friday that they pull “all nighters” to wait in lines for the opportunity to buy that one thing. Maybe you’ve done it. Retailers bring people in with the draw of certain limited quantity items (many times very limited), then several hours later those same people walk out with much more than they had planned to buy. This is how their financial statements go from red to black at the end of the year.
Black Friday consumerism drives people to do some pretty crazy shit too. I think we’ve all seen the news reports of shoppers gone wild, people being trampled on, fighting over that [insert latest craze product]. Believe it or not, there is actually a website dedicated to tracking the Black Friday death count. BlackFridayDeathCount.com lists 14 deaths and 117 injuries since they started tracking in 2006, all related to Black Friday shopping.
I have never been one to buy the latest model of anything. I realize everyone is different. I buy used cars, I keep an iPhone until it dies (I had an iPhone 6 for YEARS), I buy clothes that are not trendy and keep them for a long time, I fix my things when they break and overall, I spend mindfully. If you are one to make several purchases often, I challenge you to question what is causing you to do this. Is it a compulsion or a vice? Does it give you a ‘shopper’s high?’ How do you feel after?
Tips if you’re considering Black Friday or Cyber Monday shopping
Treating yourself or others is perfectly normal. Spending your hard-earned money is absolutely ok, especially when you are already saving and you can afford it. The key is making space within your budget for these types of purchases. I can tell you that nobody will love you any less when you make a decision to NOT go into debt for holiday shopping. And if they do, I’d look into that relationship. I can also tell you that it is the thoughtfulness of a gift that goes the distance. When you pay attention to what the other person likes and appreciates, and you deliver on that, it tells the other person that you care. Sometimes quality time and experiences mean much more too.
If you do decide to partake in Black Friday or Cyber Monday, here are some tips:
- Make a plan for what you need. Shop with intent. If you are purchasing gifts ahead of the holidays, know what it is you’re looking to purchase. Some of the “deals” people find on Black Friday quickly end up in a landfill. The last time I went Black Friday shopping was about 10 years ago. My wife and I were in the market for a new washer and dryer. Best Buy was offering an LG front-load set for $800 out the door. This was something we knew we needed, and we seized the opportunity when the time came. We purchased with intent.
- Don’t get lured in by the antics. If you aren’t able to score what you had planned to, don’t fall into the trap retailers want you to fall into, which is buying something else that was unplanned. There are marketing professionals who are meticulously plotting every message and every design and layout aspect of the store to encourage you to bite. Don’t bite.
- Think twice and once again. Black Friday and Cyber Monday add a lot of pressure. There is a time limit to get in on these “great deals.” Even with this urgency, take the time to think on it. If it means securing the item in your cart and circling the store (or pausing in the virtual store) a few times, do it. Ask yourself “what does buying this thing mean for me financially?” “What am I foregoing with this purchase?” “How many hours did I have to work to pay for this? “Is it worth it?”
It all comes down to mindful spending
In closing, what matters most when it comes to Black Friday and Cyber Monday is that you have the financial means (you are not going into debt) to participate and that you are doing so in a mindful way. These buying opportunities work out in certain situations, such as the washer and dryer purchase I mentioned earlier. Again, understand what you’re giving up to get what you want during these days. Money, after all, means freedom. It equals more time with family. The more of that you give away, the longer you’ll be stuck on the hamster wheel.
Have a great day everyone!