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What is Black Friday? (and how to beat it)

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Black Friday is a contest. It's you versus the retailer. Read on to find out how to come out ahead.

Here in Australia the 'Black Friday' sales have emerged in the last couple of years - but what does it mean?

When is Black Friday?

Black Friday is the first Friday after Thanksgiving. Yes, Thanksgiving - that American holiday we don't celebrate here. Pretty weird, huh? It's like having Boxing Day without Christmas Day.

What happens on Black Friday?

In the USA, and increasingly here, stores hold simultaneous sales in order to get shoppers into a buying frenzy. Some offer deals like 20% off everything. Other have big mark-downs on specific items in order to get you in the store - to sell you other stuff you never wanted in the first place.


Isn't 20% off a good thing?

Not really. There's a psychological effect called anchoring. If there's a jacket for $40 it's no big deal. But if the shop says it's on sale from $50, suddenly we think it's a bargain we can't miss. The perceived value of $50 makes us think we're saving $10 rather than being tricked into spending $40.

Often these sales are one-day only, and sometimes with limited stock. The time-pressure sways us towards purchasing before thinking. Not a good idea. By the time we realise we don't really want it - it's too late.

Who really wins

If someone comes home with a Black Friday "haul" saying they saved $150 - it's far more likely they just lost $800. It's the ultimate trick. The customer thinks they've made a clever buy, while companies count all the extra money they took in. Money that normally would have stayed comfortably in our wallets and bank accounts.

A popular explanation for the term Black Friday is that it's day the shops go from being in the red to being in the black (making a profit).

Bad choices are just the beginning

While millions of people will overspend and have buyer's remorse, some go even further. In the race for reduced-price items, someone was shot in a car-space dispute, others have been trampled to death or been stabbed. Some people have pulled out a gun in order to cut the queue. While most of that's in America, it's probably as sign we're taking things too far.

Winners and losers

The shop's aim is to trick you into buying extra items you don't really want. It's free money for them. It's not quite pick-pocketing, but it's pretty close.

They consider they've had a win if you buy multiple items (because they're pretty sure some of it was frenzied over-purchasing).

Their biggest fear is the customer who buys just one item. Because that's you winning.

How to (maybe) win

So here are four tips for these sales, and others like them:

1. Ignore the whole event and keep your money in your pocket. If you really need something you can buy it later without the hysteria. It might not be on sale, but you'll save way more by not getting swept up in the shopping frenzy and wasting money on things you never wanted. Also your home will have less clutter.

2. Make a list. Check it twice. If you really need that discount, during the year make a list of things you want. Save that list for the sales. Check it before the sales (preferably twice). Often, most of the items were a passing desire, and you no longer want them. More money saved. More clutter avoided.

3. Stick to your list. If it's not on your definite list, leave it alone. Stick to your plan. Write down what you're going in to get and don't buy anything else. That's you winning.

4. Everything is 100% off - if you don't buy it. It's the golden rule of sales if you want to avoid being tricked by the advertisers. Their discount might look appealing but it's nowhere near the savings you make by just leaving it on the shelf.

A better start to Christmas

Black Friday is also considered the start of the Christmas shopping season. If you'd like your Christmas to be more about love and giving than about shopping and credit cards, why not grab my free Christmas Resource. It's got 5 websites to help your Christmas have less stuff and more joy. Have yourself a merry little Christmas.

If you're looking for a better way to find gifts for loved ones, there's also my free ebook 10 Great Gift Ideas for People who Don't Want Stuff. It's about cutting the clutter and getting personal presents with fewer frenzies and less shopping stress.
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