By Taylor J. Kovar – CEO / Founder, Kovar Wealth Management

 

–Hi Taylor – The day after Thanksgiving I sat on the couch, shoving leftovers in my face and NOT packing into stores with the rest of the Black Friday shoppers. Was that a mistake? Are the deals really that good?

 

–Hey Marie – Enjoying Thanksgiving leftovers is never a mistake, so you can stop right there. As for missing out on the sales, I wouldn’t lose sleep over it. It begs the question: is it worth it to go nuts with the rest of America on Black Friday?

 

  1. Deals. The deals are, for lack of a non-rhyming term, real. Companies of all shapes and sizes are looking to offload inventory at the end of the year and drive up that revenue. While it’s good to get top-dollar for every item sold in the first quarter, the number of sales made in the fourth quarter takes priority. I read an Adobe Analytics stat that said average discounts will hit around 35% off the listing price on and around Black Friday. The sales start before and extend past the day after Thanksgiving, but big-ticket items like TVs and home entertainment systems might sell out during that one-day, in-person Black Friday surge. In short, buying a TV on November 24, 2023, would probably have been cheaper than buying the same set any month prior.
  2. Ongoing sales. As mentioned, sales season extends beyond just one day. There’s Cyber Monday and all the other days where prices are still low. Some businesses have their biggest discounts the weekend following Thanksgiving break so they don’t have to deal with all the competition. If you’re nervous everything went back to its original price on November 25, don’t worry—there are still bargains to be had.
  3. Budget. Here’s the real question when it comes to whether or not you should hit the malls at 4 AM the day after Thanksgiving: can you afford it? People always conflate discount with need—“I need this blender because it’s half off!” Yes, $100 is much cheaper than $200, but if you don’t have the first hundred to begin with, there should be no question about whether or not you’re going to buy the item in question. If you really want to capitalize on Black Friday deals, you should be planning for those expenses a month or two in advance. Buy things that you need and can afford; don’t buy things that are on sale but still out of your price range.

 

I’ve been scouring the internet for discount Christmas presents all weekend, because I know this is a good time to shop. Fortunately, I do so with a clear conscience because my wife and I set aside money for holiday gifts. Let your budget do the talking and then you can make the most of these sales. Thanks for the question, Marie!