Maximizing Black Friday Success: Dos and Don'ts for Your Business

Black Friday is just around the corner, and it's crucial to approach this retail frenzy with a clear strategy. Here are some key points to ensure you make the most of this opportunity:

1. Define Your Objective Clearly:

When diving into Black Friday activities, be crystal clear about your goal. Whether you're aiming to clear out stock or boost your profits, understanding your objective is the key to crafting effective promotions.

a) Clearing Excess Stock or Slow Stock: - Straight % Discounts: Opt for direct percentage discounts on the affected ranges. - Multibuy Offers: Consider enticing options like Buy One Get Second Half Price or Buy One Get One Free. The latter often works better, ensuring you clear two units with the same discount.

b) Increasing Profits: - Supplier Contribution: Negotiate a lower cost price from your supplier for selected lines or bundle deals to support discounts. - Bundles or Multi-Item Offers: If supplier funding is unavailable, consider bundling products or offering multi-item deals, yes you sacrifice margin points but if the units sales uplift enough you will be banking more cash profit

2. Avoid Flat Discounts Across Everything:

While a flat discount across the board might seem simple, it has drawbacks. Your best sellers may sell more, potentially reducing future sales, while slower-moving items may not benefit much.

3. Utilize Black Friday to Clear Dated Stock:

Take advantage of Black Friday to discount products with a limited shelf life. Be transparent with customers about the discount being related to the remaining shelf life. This can be an excellent strategy if you have efficient processes to manage stock.

4. Don't Participate If It's Not Right for You:

Contrary to popular belief, not everyone is solely after a bargain. If Black Friday doesn't align with your brand or if you're focused on educating customers about specific products, consider whether participating is the right move for your business.

Remember, the key is not just making sales but doing so strategically to benefit your business in the long run. Happy Black Friday planning!