Black Friday, an annual shopping extravaganza, has become a global phenomenon over the years. Originally an American holiday that marked the beginning of the Christmas shopping season, Black Friday celebrated worldwide, including in the UK. With recent years seeing further growth in the phenomenon, with the day extending to weeks and the introduction ‘Cyber Monday’ it’s no surprise that people are seeing it as less of a chance to grab a great deal, and more of a headache that they’d like to avoid. While it is undoubtedly an excellent opportunity for businesses to increase their sales, many question whether the deals are worth it, or give across the right message or values for their business.
In this blog, we will explore the pros and cons of running Black Friday deals in the UK and help you decide if it is the right move for your business.
The Pros
Increased sales
The primary benefit of Black Friday deals is that they can significantly boost your sales. Customers are always on the lookout for good deals, and it provides an excellent opportunity for them to grab products they may have been eyeing for a while. With the right marketing strategy, you can attract a large number of customers and increase your sales.
Increased visibility
Black Friday is a highly publicised event, with media outlets promoting the event weeks in advance. As a result, businesses that participate in the event benefit from increased visibility and exposure. This is particularly beneficial for small businesses that may struggle to compete with larger retailers on a regular basis.
Competitive advantage
Black Friday is a highly competitive event, with businesses vying for the attention of customers. By offering exclusive deals, businesses can gain a competitive advantage over their rivals and attract more customers.
The Cons
Lower profit margins
Offering significant discounts can lead to lower profit margins, which can be a major disadvantage for businesses, particularly small ones. Some businesses may end up losing money if they offer discounts that are too steep in order to keep up with larger competitors.
Negative impact on brand image
Black Friday deals can negatively impact a business’s brand image, particularly if they are seen as being too aggressive or exploitative. Customers may view the business as being more concerned with profit than with customer satisfaction.
Logistics
Running any sale requires significant logistical planning, including managing inventory, staffing, and order fulfilment. This can be a challenge for businesses, particularly those that are not well-equipped to handle the increased demand.
In conclusion, Black Friday deals can be an excellent opportunity for businesses to increase their sales and visibility. However, there are also potential drawbacks that businesses should consider before participating such as how it will affect brand perception and if it is worth cutting profit margin as a small business. Ultimately, the decision to participate in the event depends on each business’s individual circumstances and goals. If in doubt, we’d say avoid the Black Friday promotions and focus on a strong, impactful Christmas campaign instead.
Do you need help with marketing your business?
Get in touch to see how we can help.