Sales maximization, which is the basic motive of any firm, is achieved even when retailers sell just above the break even point. Overall, it is a great opportunity for bargain shopping.
A Brief History
Before we look at the different aspects of Black Friday shopping, let's go through a brief history of this idea. A chance to maximize sales with the help of festivities is a very good sales tactic. The perfect opportunity that traders all across the United States take is on the day after Thanksgiving.
The origin of the term Black Friday can be traced back to the city of Philadelphia in the 1960's. The reason that it is known as a 'black' Friday is probably due to the huge volumes of automobile and pedestrian traffic hitting the shopping streets, shopping malls, and gift shops on the day after Thanksgiving, for Christmas shopping.
The term has probably originated from the security and police departments which have its hands full. Some people may associate the same with the heavy discount on goods that makes the price of goods so less, that it tends to affect the black market, by competing with it.
In some cases, the origin of the term has been associated with accounting, stock market, advertising, and finance. Whatever be the origin, a black Friday provides a good volume of sales to retailers, a day of shopping for consumers, and a day of interesting economics for some people.
Effect on the Economy
A majority of industries and sectors are affected by the Black Friday. Industries, businesses start their preparations just after, well even before, Halloween to grab the record sales and demand of the Black Friday.
Many companies also resort to mammoth mass productions, so as to curb down the costs of production and again on the Friday, resort to high discount sales that just exceed a break even point (no profit, no loss point).
The retail sector is the one which is affected the most. Electronics, fashion and textile, food, wine and jewelry are some sectors which profit from the season. Some companies like Wal-Mart, Target Corporation, OfficeMax, Big Lots, and Staples, in fact, send advertisements and discount coupons in advance to their consumers, so that they can plan in advance.
Some companies, in fact copyright their advertisements to ensure the lowest (competitive costs). The internet has proved another great source for the companies to maximize their sales. Online auctions and internet shopping, have proven to be a great booster for sales, as the consumers from all possible corners of the country shop online.
There are a certain number of concerns that shoppers have expressed. The first one is of course the fear of going overboard with the budget. Some also fear that the United States economy has fallen prey to the economic phenomenon of 'dumping' and they will receive substandard goods which are of low quality yet demand a high price.
If you want to know how to control the shopping expenditure on this day, we have a very simple method that will help you save some money. Make a list of things you want to buy and visit the websites or stores to estimate your total expenditure, and then go out on the Friday to the stores without your credit card, carry hard cash.