HOW TO AVOID OVERSPENDING ON BLACK FRIDAY

BLACK Friday has become synonymous with massive sales, deals and shopping extravaganzas. It’s a time when retailers offer significant discounts to kick off the holiday shopping season, enticing consumers with irresistible offers. While the idea of scoring great deals is exciting, it’s easy to get caught up in the frenzy and end up overspending. Before getting swept away by the sales frenzy and the fear of missing out (FOMO) surrounding Black Friday, it is imperative to understand the psychology of sales. Remember that retailers are primarily in the business of making money, not saving you money. The psychology of sales leverages human behaviour, emotions and cognitive biases to influence purchasing decisions, creating urgency and desire that ultimately drive consumers to make purchases. Here are some practical tips to help you avoid overspending on Black Friday and keep your finances in check.

Set a budget

Before you even think about shopping, determine how much money you can afford to spend without jeopardising your financial stability. Having a budget in place will help you stay focused and resist the temptation to splurge on unnecessary items.

Create a shopping list

Identify the items you genuinely need or have been planning to buy, and list them out. Stick to this list while shopping, avoiding the allure of impulse purchases. Ensure you spend only on what you truly need, rather than succumbing to every shiny deal that catches your eye.

Research

Do your research on the products you are interested in before the actual sale date. Compare prices across different retailers and websites to ensure you’re getting the best deal. Just because an item is marked as on sale, does not necessarily mean it is genuinely discounted; retailers often play psychological games with shoppers. As humans, we tend to have a higher propensity to purchase when an item is marked as on sale, even if the price is the same or higher than usual.
Developing a price tracking tool can help you avoid falling into such traps. Additionally, be aware that the shop layout is designed to encourage overspending. Most Black Friday deals are usually located next to complementary items that are often marked up higher than usual.
Once you buy an item on sale, you are more likely to purchase a product that is used together with that item (a complementary good). A price tracker will assist you in identifying deals that are genuinely discounted and help you avoid overpriced items.

Take advantage of pre-Black Friday sales

Many retailers offer early Black Friday deals in the weeks leading up to the big day. Keep an eye out for these pre-sales, as they often feature significant discounts. By shopping early, you can spread out your expenses and reduce the urge to overspend during the frenzy of Black Friday. Look for items that complement your planned Black Friday purchases, as these are usually on sale during the pre-sales.

Understand store layouts

Iis also essential to study the layout of the shop where you plan to shop pre-Black Friday. This will save you time and help keep your focus on the deals you are interested in. I recommend spending between 20 to 30 minutes in the shop; the longer you stay, the more likely you are to see deals that were not initially on your shopping list. It is also important to take breaks in between shops. During these breaks, reflect on your shopping list, budget, and actual expenditure. If necessary, readjust your list before entering the next shop. Additionally, be mindful of ‘doorbuster’ deals.

Be cautious of
‘doorbuster’ deals

Doorbuster deals are designed to lure customers into stores with the promise of unbeatable discounts. However, these deals often have limited quantities and may not be as great as they seem. Before rushing to the store for a doorbuster deal, ask yourself if you truly need the item and if it’s worth the effort.

Avoid using credit cards

Using credit cards can make it easier to overspend, as it doesn’t involve immediate out-of-pocket expenses. Instead, consider using cash or a debit card for your purchases.
When you use cash, you can physically see the money leaving your wallet, making you more mindful of your spending. If you must use a credit card, set a strict limit for yourself and commit to paying off the balance in full to avoid accumulating debt.

Consider your children

Retailers and marketers have figured out that parents are likely to spend more on their children than on themselves. Most advertising campaigns are now focused on children rather than adults. Set expectations and a limit for each child, and encourage them to stick to it. Remember, shops are not in the business of saving you money; their aim is to make money from you.  Shop responsibly!

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