Why I consider Black Friday a Hoax and a Scam

black-friday

People have asked me why I don’t go Black Friday shopping and get the great deals that are being offered. Well besides the obvious reasons of losing sleep and putting up with mindless zombie herds of people who are thinking they are getting a great deal, but the main reason why I don’t go Black Friday shopping is because the whole concept in this modern day and age is Black Friday is nothing but a scam and hoax. People thinking that they are getting a really good deal on items that they thinking they need but the items are nothing but wants and impulse items. Do you really need a 52 inch flat screen television to watch whatever you like to watch or when a 32 or 38 inch flat screen will work the same for your needs.

On to the topic of why I consider Black Friday a hoax and scam. To me Black Friday is a complete scam based around the idealistic hoax that consumers are getting great deals or discounts on products that would normally be more expensive at any other time of year. But in reality, stores will enjoy the highest profit margins during the holiday season due to the fact that retailers systematically increase prices months prior to Black Friday in order to make the following discounts look good in comparison.

According to a Bloomberg BusinessWeek report, “Among the 15 largest U.S. retailers, operating margins in the holiday quarter in 2013 were 11 percent, compared with 9 percent in the preceding nine months. Amid the year-end shopping frenzy, these companies padded their bottom lines, on average, by roughly one-quarter.” As the Wall Street Journal points out the idea of Black Friday discounts is a complete hoax achieved via the process of price massaging throughout the rest of the year.
This scam relies on the shopper’s ability of impulse buying of a product that is usually marked up by at least 98%. So even if the first item represents a genuine discount, the vastly inflated price of the ensuing impulse purchases more than makes up for it the supposed discount.
As the Made.com boss Ning Li was quoted as saying in an article “How come retailers are able to make such drastic reductions and not have to give the store away too?” The answer that was given: “Mark-ups. And high ones at that”.
In most cases, the supposedly great deals that people are willing to sacrifice endless hours of their time by camping outside of stores to take advantage of could be found for even cheaper later in January.

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One thought on “Why I consider Black Friday a Hoax and a Scam

  1. You may have a point. Most things are extremely overpriced anyhow. For instance, most CDs cost less than a dollar to produce. Yet they are sold for nearly $20. I understand making a profit, but there is a difference between a profit margin and price gouging. Very interesting take.

    Like

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