Black Friday Deals Aren't So Great ... No Hurry To Go Shopping

Based on a review of the Black Friday "doorbuster" deals, there's no need to bust down the doors.

The deals aren't necessarily going to be all that great anyway.

Black Friday 'Doorbusters' Don't Always Hold Up to Data gives us some of the pertinent facts:

"Every Black Friday, retailers lure shoppers in the cold, predawn hours to wait in long lines with the promise of one-day-only deals that can't be beat. And every year, a good number of those shoppers ask themselves, "Is this really worth it?"

The answer, it turns out, is often no.

From matching rivals' prices to avoiding Black Friday discounting altogether, retailers are testing out a host of strategies this holiday season as they try to energize sales and profits during their most critical time of the year. But will they work?

 

An analysis of this year's most-touted Black Friday deals by The Wall Street Journal and price-data firm Decide Inc. found that many of the bargains advertised as "doorbusters" were available at lower prices at other times of the year—sometimes even at the same retailer.

Decide has gathered years' worth of online price data and uses it to tell subscribers when they should pull the trigger on purchases. It looked at more than 500 doorbusters advertised in Black Friday circulars by big-box and department stores such as Sears Holdings Corp., Target Corp. and Best Buy Co. and found nearly one-third of the products had been sold at lower prices this year, Decide Chief Executive Mike Fridgen said.

Sears, for example, is advertising a KitchenAid Artisan Series Stand Mixer for $319.99 this Black Friday. Decide data found the retailer offered the same mixer for $296 in March....

 

Home Depot Inc. is advertising a General Electric Co. Adora dishwasher for $598 on Black Friday, touting a savings of $151. But as recently as last month, the home-improvement retailer was selling that same dishwasher for $538, Decide found.

A Home Depot spokeswoman said the earlier discount on the dishwasher was a Columbus Day special, but the majority of its Black Friday deals are its best of the year. . . .

Black Friday has long been a game of convincing shoppers that prices are so good they can't afford to miss out. Retailers have adopted a number of tactics over the years, from deeply discounting a limited supply of loss leaders to lining up cheaper gear that can be sold at low prices without killing margins.

Retailers don't generally make specific promises of lowest-ever prices, and Decide found many of the bargains appeared to be genuine. The data company said the majority of the doorbuster deals it checked hadn't been available at lower prices during the year.

Still, the transparency and easy aggregation afforded by online pricing is making it simpler than ever to test retailers' claims. Decide, for example, found retailers often pick popular brands or lower-quality items for deep discounts on Black Friday.

"Technology has made it possible for consumers to be aware of what's a deal and what's truly a marketing ploy," Mr. Fridgen said.

A Wall Street Journal analysis this fall found Black Friday isn't necessarily the best time to buy some popular holiday gifts. Popular items such as watches and jewelry typically sell for their lowest prices in October. Other items like flat screen televisions are best bought at the beginning of the New Year.

Rob Docters, a senior member of McKinsey & Co.'s pricing practice, said retailers are likely counting on consumers to assume their advertised sales are the best of the year.

"People associate Black Friday with good prices, and that eliminates the need to check price," he said."

SUMMING UP

If it's a sporting type effort, then by all means go and shop Thanksgiving night or Friday morning.

However, if it's a good deal you're after, try comparison shopping on Amazon before venturing forth to the nearest 'doorbuster' retailer in the neighborhood.

And if you're looking to buy a TV to watch the Super Bowl, maybe early 2013 is the right time to shop.

In other words, unless you're just in it for the fun, be an informed buyer and don't believe all the hype the next day or two.

Thanks. Bob.