Every year on the Friday after Thanksgiving, many stores offer great deals for shoppers. This is known as Black Friday. With many people shopping on Black Friday, it is a great opportunity for stores to gain revenue, but is there too much competition for small businesses to make a good profit?
Typically, the stores with the best deals get the most customers. Big chain stores can afford to make these sort of deals, and have enough items in stock to sell a large amount of items for little cost. Small businesses can't compete with many of the deals big stores have and often have to sell things at a higher price, or feel pressured into matching these deals that they can't afford. This causes many customers to shop at bigger stores instead of small ones. Big stores also can advertise their deals a lot more than small businesses. They have more money for advertisements. For example, last year major retailers spent just over a quarter of a billion dollars advertising for their black friday deals alone. In comparison, the average small business spends only $400 dollars on advertisements monthly. Due to all of this advertising, a lot more people will know about the sales big stores are having, while not many will know about small business sales.
I think that Black Friday can be profitable for small businesses if they set realistic deals that their business can afford. No small businesses will benefit as much as big businesses do from black friday, but they can make some money if they remember what their business can afford.
Do you think Black Friday is good or bad for small businesses?
Do you usually shop at big stores or small stores on black friday?