29 Oct Should Small Businesses Participate in Black Friday?
Firmly cemented in American consumer culture, Black Friday is expected to again be the busiest shopping day of 2019. Mere hours after eating pounds of turkey, stuffing and pumpkin pie, shoppers venture to the stores to score some of the best deals of the year. They see it as a way to get a jump start on Christmas shopping. Though it’s still mostly large-scale retailers that offer the deepest discounts, more small businesses have joined the game in recent years.
The total amount spent by shoppers on Black Friday in 2018 was $715.5 billion, according to The Balance. What’s even more noteworthy is the average amount spent per shopper, at $1,007.24. This represents an increase of approximately 4.3% over Black Friday 2017 sales. The numbers show that shoppers are ready and willing to spend on Black Friday. So, rather than leaving it to large-scale retailers, why not consider joining in?
The truth is, you still might be wondering whether the additional time and investment are worth it. Consider the following pros and cons of participating.
Pro: Increase Awareness and Engagement
One perk of offering Black Friday deals is engaging your customer base to return to your store for their holiday shopping. To get current customers to your store after Turkey Day, you could create a promotional email that specifies some of your biggest deals. In addition to sparking interest in your current customers, a Black Friday sale can raise awareness and attract new people to your business.
Con: Risk of Running Out of Inventory
There’s no greater buzzkill for eager Black Friday shoppers than sold-out merchandise. Without enough preparation, you could run out of your most sought-after items, sending customers out the door empty-handed. You can turn this con into a non-issue by ensuring well ahead of time that you have enough inventory to turn your shop-goers into happy customers.
Pro: Get Rid of Old Stock
Is there an item that’s been taking up space on your shelves for too long, and you just can’t seem to move it? With certain products that just don’t seem to be selling, try to intrigue buyers to purchase them with a Black Friday price reduction. Of course, you’ll still want to make a profit on these goods. But the sacrifice of a few dollars’ profit may be worth the extra shelf space, which you can then fill with your best selling items.
Con: Schedule Extra Staff
Around the holidays, you may need to hire seasonal staff to account for higher volume and traffic. If you decide to run a Black Friday promotion, you’ll need to make sure you have enough staff scheduled to meet the increased demands. With extra employees working on Black Friday, you’ll be expected to pay more upfront costs in hourly wages. So depending on how tight your purse strings are this season, this may be an issue.
Prepare for Black Friday with a Small Business Loan
If you believe the pros outweigh the cons, you might be ready to take on a Black Friday promotion. When you need fast working capital – to pay your staff, stock up on bestsellers, or create promotions – consider a small business loan. Unlike large-scale funding from banks, a small business loan from an alternative lender like QuickBridge features a fast, simple application process. Giving you more time to focus on your Black Friday plan of attack!
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