5 reasons to say no if you’re a small to mid-sized business
Black Friday, the day following Thanksgiving, for some reason, has become synonymous in the UK, as well as the States, with bargain hunting and shopping sprees. Beneath the surface of seemingly attractive deals and bustling storefronts, there is more to Black Friday than meets the eye. And if you’re a smaller business here’s 5 very good reasons you shouldn’t get suckered into competing with the big boys!

1.    Margin Erosion

Surprisingly few businesses really understand the margin they make on individual products or services. By introducing the level of discount shoppers look for on Black Friday can land you in a precarious position, without even realising it.  

Realistically, the kind of deep discounts shoppers are dazzled by are only successful if you can sell in high volume. If you don’t have the size and scale of a bigger business, then you won’t achieve the sales you need to compensate for slashed prices. This lack of volume can lead your business to experience real financial strain not just now, but in the next calendar year.

2.    Operational Challenges

Ok, you’ve ignored the advice on slashing prices, and you think you can go for it…what could possibly go wrong? Well, don’t forget how you’ll really deliver.

The surge in traffic on Black Friday can overwhelm businesses (punch up in Asda anyone?). Long queues, inventory management issues, disruption to regular sales and businesses operations can create negative impact that really affect the customer experience. A shopper will be quick to forget the discount when the experience has been like hell!

3.    Team burnout

So you think you can slash the price; your operations can totally deal with it – what else? Well, don’t forget your people. The demand of Black Friday often requires extended hours and high stress interactions with customers.

It's likely that you’re already going to ask a lot of your team with the Christmas holidays around the corner, so it’s worth asking now – ‘should I do this to them?’

This is where the immediacy of sales can have impact on the long term - burnout, reduced morale, and increased turnover rates are very real challenges, which can all be triggered by that Black Friday rush – eek!

4.    Brand dilution

OK…discount done, operations a cinch, the team are totally up for it – I should go for it right? Wrong!

There’s also your brand to think of. Participating in Black Friday can lead to dilution of the perceived value of your brand. If a company is constantly associated with deeply discounted products, customers may begin to question the quality and authenticity of its offerings, potentially damaging the brand's long-term reputation. This is why many large brands (un-environmentally and unethically) destroy their own stock rather than discount – take heed!

5.    Consumer expectations

So, you’ve read points 1 – 4 and are thinking, ‘this totally does not apply to my business, I can smash Black Friday and make no mistake’ – we hear you chums, it is so damn tempting, but here’s our final reason to be like Zammo and ‘Just Say No’ (Google that one if you’re under 40!)

Black Friday can begin to morph and change your consumer into something you really don’t like very much – a bargain hunting horror show!

This discount day of delights sets a precedent for consumers to expect massive amounts of money off, conditioning them to wait for such sales events before making significant purchases. This can disrupt regular sales patterns, making it challenging for businesses to maintain steady revenue throughout the year. An epic cautionary tale if you’d like one here is mum’s favourite Boden, check out their very checkered past with discounting strategies!

So, you may now be thinking what do we do instead? If you’re a business owner or are being challenged by one to come up for something our advice is simple. Do nothing – as your nana rightly told you, it’s the quiet ones you have to watch!

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