Midnight Madness

Happy Black Friday! With phone apps and newspaper ads, door busters and early bird specials, how could you not get caught up in the hype? The average American dishes out nearly $400 during this holiday weekend. Not only is this Friday going to be a steal for consumers, it’s also extremely lucrative for retailers!

Historically, the term “Black Friday” originated from retailers who depended on this day to pull their numbers into the black – the first day of the year when their businesses would turn a profit. Friday kicks off the holiday buying season with a bang and in recent years our economy has depended on this sales spike. All signs point to huge profits this year. Stores like Walmart are opening as early as 10pm on Thanksgiving Day, as an attempt to beat the competition to the first consumers.

The concept seems simple enough, but retailers employ a myriad of strategies to create profits on this day. Some stores will markdown everything in the store, scraping their bottom lines, in hopes of beating their sales from last year. Oftentimes stores will sell big ticket items at a minor loss, banking on the likelihood that consumers will purchase ancillary accessories as well. Black Friday is a win for all sides, assuming that you can handle the massive crowds. Last year in 2010, we saw the highest percentage of online sales in history, which tells us that people are, increasingly, less willing to play the “game” orchestrated by retailers. Regardless of how you plan to participate, enjoy the holiday stimulus plan…It only happens once a year!

P.S. The first Black Scribe contest will be taking place very soon!

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