An American consumer trend has inveigled its way into our retail sector in recent years - the hyped-up shopping phenomena known as Black Friday and Cyber Monday.
At first, we watched in bemusement as clips of riots at Black Friday sales in New York and Los Angeles went viral, perfectly illustrating the perils of rampant consumerism. Then our own retailers jumped on the Black Friday bandwagon, spotting an opportunity to get the Christmas sales season off to an early start - and a good way to clear the decks of old and excess stock.
Black Friday is always on the Friday after Thanksgiving in the United States. It’s on this Friday, November 24, in New Zealand and Australia. Cyber Monday, which is all about online sales, kicks in the following Monday, November 27. It’s a marketing push designed to generate a four-day shopping frenzy but Black Friday sales have already been running since last week, so eager are retailers to lock in your purchases.
A marketing manager for a major TV brand told me recently that electronics retailers are increasingly prioritising Black Friday sales in their advertising and sales efforts. Price comparison site PriceSpy estimates that Black Friday generated sales of nearly $250 million in 2021. But with the cost of living really biting this year, the sales frenzy may not be as intense.
Here’s what you need to know:
Yes, there are genuine deals on Black Friday:
If you are in the market for tech products, the Black Friday sales are worth a look. PriceSpy’s price index, which tracks price changes across nearly 140,000 products, found prices dropped 6.52% across the board on Black Friday in 2022, with 48% of products reducing in price. More than a fifth (22%) of all items listed on PriceSpy dropped in price by at least 10%.
But there’s a catch:
Some of those deals are not what they appear to be. Watch out for fake deals: some retailers bump up their prices in the run-up to Black Friday and Cyber Monday, only to “discount” products, making it look like a sweet deal. Even worse, in 2022, retailers increased their prices across 16% of indexed products on Black Friday, according to PriceSpy. They are gambling that marketing bluster is enough to make it appear to be a great deal.
Compared to 2021, PriceSpy’s New Zealand country manager, Liisa Matinvesi-Bassett, said following Black Friday 2022, “more products this Black Friday received a price increase in the weeks leading up to Black Friday, to then drop in price on the sale day, making the discount appear better than what it was.”
Black Friday is big on tech:
Headphones, mobile phones and TVs were the hot consumer electronics categories in Black Friday sales last year, according to PriceSpy, with the five most popular products being:
1. Sony PlayStation 5 (PS5)
2. Philips HD9270 Essential Airfryer XL
3. Sony WH-1000XM4 Wireless Over-ear
4. Samsung Galaxy S21
5. Nintendo Switch OLED 2021
Five tips for getting genuine tech deals
1. Consider older models
With Black Friday and Cyber Monday used to shift stock ahead of the Christmas sales season, you are likely to see some attractive deals on last year’s models of TVs, smartphones, earphones and computers. Buying an older model is a good way to get a deal - just make sure you won’t be missing out on any must-have features. For instance, when buying a smartphone, make sure it is 5G-capable, so it will be compatible with the faster network available in parts of the country.
2. If it was already cheap, it’s less likely to be heavily discounted
The steepest discounts are likely to be on products that have a healthy margin for retailers, such as high-end TVs, computers and smartphones. They’ll be loath to discount value products, which could see them make no profit on the sale. So closely scrutinise “deals” on cheap products.
3. Look at past price trends
It pays to shop around and compare prices advertised. PriceSpy is a good starting point for online research and includes a graph of historical prices for thousands of products. If you see that prices for a particular tech product have recently been lower than the Black Friday sale price, there’s a good chance you can expect a better deal in future, particularly with Boxing Day and New Year sales looming.
4. Factor in shipping costs
Let’s say you see a TV with a 10% discount in a Cyber Monday sale. That’s great, but what will they charge to courier the TV to you? Many retailers sweeten the Black Friday/Cyber Monday deals with free shipping offers, but not all of them. Make sure your discount isn’t eaten up with shipping costs.
5. Weigh up bundled offers and freebies carefully
Retailers will try to sweeten the Black Friday/Cyber Monday deals with attractive-looking bundles. For instance, Spark’s Black Friday deal on a Galaxy Z Fold5 5G smartphone comes with a free Samsung Jet Pet Stick vacuum, which really just seems like Samsung trying to shift some units of a slow-selling product.
Black Friday deals already on offer:
Hewlett Packard - up to 40% off laptops
Lenovo - 30-40% off laptop models
PB Technology - electronics retailer has a large number of Black Friday deals on its website.
Spark - offering tech bundles and gift cards on certain purchases as part of its Black Friday offers.
Noel Leeming - has a micro site devoted to its Black Friday deals.
Harvey Norman - the red “hugE deal” sticker is used liberally on Harvey Norman’s Black Friday page.
JB HiFi - the retailer has a collection of Black Friday deals on its website.
