Jackass Posted November 30, 2009 Share Posted November 30, 2009 Ok, not sure if anyone can answer this, but my family nearly came to blows over this question at Thanksgiving dinner; just thought i'd throw it out to this forum as i know we have a few economic experts out here. What it boils down to (i think) is this: Let's take a company like Best Buy. Do the deals that people get on Black Friday (where for example they're getting $400 40 inch TV's or whatever) have a negative impact on how much the rest of the consumers pay for their TV's (or washer /dryer, etc.) at a particular company. In other words, am i paying more for my TV or washer /dryer at Best Buy than i otherwise would if these deals were not offered. Quote Link to comment Share on other sites More sharing options...
Avernus Posted November 30, 2009 Share Posted November 30, 2009 Ok, not sure if anyone can answer this, but my family nearly came to blows over this question at Thanksgiving dinner; just thought i'd throw it out to this forum as i know we have a few economic experts out here. What it boils down to (i think) is this: Let's take a company like Best Buy. Do the deals that people get on Black Friday (where for example they're getting $400 40 inch TV's or whatever) have a negative impact on how much the rest of the consumers pay for their TV's (or washer /dryer, etc.) at a particular company. In other words, am i paying more for my TV or washer /dryer at Best Buy than i otherwise would if these deals were not offered. black friday is one big gimmick... stores have these laprops/hdtv's that are sent from whichever companies specifically for black friday as they are not in normal rotation throughout the year... most products are not any cheaper than they normally are and sometimes they even cost more..... black friday is all about that $199 laptop or $499 40" hdtv and these are not the items in normal rotation....they are made for that cheap gift that people want around the holidays... but people get it all twisted by thinking that everything is dirt cheap on black friday.... so you're not paying any less unless you get a doorbuster type deal or whatever they call em... Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted November 30, 2009 Share Posted November 30, 2009 Ok, not sure if anyone can answer this, but my family nearly came to blows over this question at Thanksgiving dinner; just thought i'd throw it out to this forum as i know we have a few economic experts out here. What it boils down to (i think) is this: Let's take a company like Best Buy. Do the deals that people get on Black Friday (where for example they're getting $400 40 inch TV's or whatever) have a negative impact on how much the rest of the consumers pay for their TV's (or washer /dryer, etc.) at a particular company. In other words, am i paying more for my TV or washer /dryer at Best Buy than i otherwise would if these deals were not offered. I would say mostly no. The basic motivation of Black Friday deals is foot traffic. The more people you get in a store, the more they buy. They only have a limited number of advertised items. They expect to run out, and hope that the shoppers who don't get the BF special item buy a substitute item instead. Besides, as I understand most big box stores, special promotions are kept separate from normal business on the balance sheet. The buyers at these places pay very close attention to their gross margins for individual items and their section of the store as a whole. If they were forced to include special promos in their section, it would adversely affect their margins. Of course stores routinely jack up prices on accessories for big items. Camera bags, HDMI cables, batteries, etc. But that is year round, not just a BF thing. Stores could pull unfair tactics like a Bait and Switch, but I think you are asking about legal policies. Quote Link to comment Share on other sites More sharing options...
Puddy Posted November 30, 2009 Share Posted November 30, 2009 Loss leaders. Quote Link to comment Share on other sites More sharing options...
bpwallace49 Posted November 30, 2009 Share Posted November 30, 2009 I would say mostly no. The basic motivation of Black Friday deals is foot traffic. The more people you get in a store, the more they buy. They only have a limited number of advertised items. They expect to run out, and hope that the shoppers who don't get the BF special item buy a substitute item instead. Besides, as I understand most big box stores, special promotions are kept separate from normal business on the balance sheet. The buyers at these places pay very close attention to their gross margins for individual items and their section of the store as a whole. If they were forced to include special promos in their section, it would adversely affect their margins. Of course stores routinely jack up prices on accessories for big items. Camera bags, HDMI cables, batteries, etc. But that is year round, not just a BF thing. Stores could pull unfair tactics like a Bait and Switch, but I think you are asking about legal policies. +1 It doesnt drive up the price of other stuff any more than when they put yogurt on sale at the supermarket the price of your bread goes up. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted November 30, 2009 Share Posted November 30, 2009 Stores could pull unfair tactics like a Bait and Switch, but I think you are asking about legal policies. A colossal scam is all Black Friday is, certainly in the electronics realm. The items on "special" are either end-of-life with a new model already out or very close to it. Other items in the store are often actually marked up and, as we all know, the number of sale items is strictly limited. If you're out there at 2:00 a.m. joining in this farrago of nonsense, you're a sap. Quote Link to comment Share on other sites More sharing options...
BiggieFries Posted November 30, 2009 Share Posted November 30, 2009 Damn! You guys almost came to blows over Best Buy's balance sheet? I'd hate to be around when you guys talk about politics or religion. Quote Link to comment Share on other sites More sharing options...
westvirginia Posted November 30, 2009 Share Posted November 30, 2009 A colossal scam is all Black Friday is, certainly in the electronics realm. The items on "special" are either end-of-life with a new model already out or very close to it. Other items in the store are often actually marked up and, as we all know, the number of sale items is strictly limited. If you're out there at 2:00 a.m. joining in this farrago of nonsense, you're a sap. This, and irish doggy already mentioned the accessories at ridiculous markup. If BB has a computer w/monitor and printer on sale at a great price, and that's all you buy, the sales kiddies refer to you as a "three-box chump". See how hard they try and sell you extended warranty, better cables, better speakers, toner cartridges, etc. These are the high-margin items. I bought my wife a camera there for her birthday a couple years ago. They tried to kill me on rechargeable batteries, a charger, case, SD cards, etc. - stuff I knew was cheaper at wal-mart or online. The little sales chickie tried her best to sell me stuff, especially that warranty. I asked her if she was telling me the camera was poor quality and she quit. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted November 30, 2009 Share Posted November 30, 2009 Loss leaders. Yep Quote Link to comment Share on other sites More sharing options...
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