The Secret Behind Black Friday Sales

Ever wonder why it’s called Black Friday? As it turns out, Black Friday is an accounting term. For those of us who don’t balance ledgers for work, numbers are written in black when it’s a positive as opposed to red for negative numbers. The significance of all of this is that Black Friday is all about insane doorbuster deals that make the company lose money, so how does the number still remain black at the end of the day?

Do you ever think about why the sales begin soo early? Wouldn’t it be nice if all the stores began at noon for the sales? Well, how stores still end up making a significant profit after all those money-losing doorbusters is by getting you before the other stores do. They know that as soon as you go there for the doorbusters, you’re very likely to just finish your shopping there, or at least pick up a few things you need anyways. So, the night before Black Friday, stores mark up all of their products that are not part of the sale just enough to make a larger profit, but not so much that you can tell a huge price difference.

As the stores compete for you to come to their stores first, the time of the doorbuster is set earlier and earlier. After all, you wouldn’t want to start your sale at noon when people have finished their shopping by 8:00 a.m. The profit from small markups on all the other products, along with a strong culture of shopping the day after Thanksgiving – is what makes Black Friday “black”. People shop even later in the day just out of habit and culture. Others also camp out in front of stores that have not had a significant doorbuster in years because they didn’t compare the prices with other stores.

Regardless of which way the stores bring you in for a day of shopping, the best way to avoid overpaying is to check all ads beforehand, and compare each store’s doorbuster with the next. Limit yourself to only buying that doorbuster, and go to the store that has the most doorbusters you want. Don’t try to hit all the stores in one morning, as chances are all the good deals will be gone by the time you get to the second store. While Black Friday has passed this year, you now have a game plan for tackling next year’s deals.


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