We are just under a month away from one of the busiest shopping weeks of the year as we hurtle towards the somewhat recently introduced thing of "Black Friday."
I have to say that I am not a fan of this proposition in retail personally, from the angle of the retailers for two reasons:
- It revolves predominantly around reducing prices - something that moves us all into the "red ocean" of competition rather than focusing on value.
- For many all it does is bring the intended purchase forward and doesn't add additional value to the business longer-term...let me explain.
The first year that this event really hit the UK, I was working as a consultant in Home Retail Group (you'd know that as Argos) and the week of Black Friday, their sales went "bonkers" (that is a technical term) and everyone lauded the success of this new retail event.
However...
When they looked at their sales for the period Black Friday through to New Year, their sales revenue was exactly the same as the previous year - all that had happened is that they had sold more items at a lower price, and not generated any more revenue through this offer - just took the money earlier.
And that is why I'm not a fan of it....however....you should think about how you could implement your version in your business no matter what you do.
But do it like this.
Value up.
Create bundles. Add multiple products or services together to increase the overall spend level.
Add additional support levels - make a 6 month warranty a 12 month one.
Limit the numbers available.
It doesn't have to be about price.
For one of my clients, an online stationery business, we have resolved not to get involved in this event at all - in fact that is why we don't even mention it - and call it the "Scottish Play."
For those of you would be actors, you'll know what I mean, however for those not versed in the world of thespians, actors refuse to mention the word "Macbeth" as it brings them bad luck - preferring to call it the "Scottish Play"
Edmund Blackadder shows it better here: https://www.youtube.com/watch?v=Q2a2zqzit5A
If however you are going to go for it - make it about value up not prices down!
Speak soon!
James