That time of the year has come. You’re an online shop looking for a Black Friday Marketing Strategy? Well we can help you with that if you check our Marketing services, although is a little late to schedule your campaign, but this post is more oriented for the clients. For those clients that might get trapped in your “Black Friday Marketing Strategy”.
Don’t believe sales bigger than 75%!
We’re a marketing agency, we work with numerous clients, from numerous domains, clothing, products, online services and so on, and we know how prices are made and how they are “marketed” to get to you, the client that you “desperately” need it (or not).
What is the Black Friday marketing budget?
This differ from business to business, from product to product. Promoting your business via Facebook Ads, Google Ads or Pinterest Ads is dependent on your target, audience, budget (of course) and competitors.
Competitors increase the marketing campaigns budget during this sales in order to stay on top of you. The plan is to optimize and outcome them.
Let’s cut down the expenses and the final product
First we need to take an example. Let’s say a t-shirt that costs 200$.
What are you paying for?
Well, good question. Every product or service has a price, a well rounded and documented price. The price that you pay is not only the price of your desired product or service itself. It often includes the commercial excess, taxes, the marketing company budget (yeah, you pay for us as well), the packaging, delivery and so on.
So even the production cost is 100$, you will most likely pay 200$ or more. So the t-shirt has a production cost of 100$ (although it’s not accurate at all, but for the good of the math let’s say it’s 100, you will get the right answer later on this article), and an excess of 100$ that you are paying for.
Black Friday Sales
If you are clothing store for example, then you have a couple of sales during years. Black Friday would be one of the most important. If the production cost is 100$, you’re selling the t-shirt during the year with 200$, you need to pay taxes and the marketing team, then what is the last sale that you can make for this t-shirt?
Decreasing the price to 50$ – that’s 25% sale. If you want a bigger sale than 25% for this t-shirt you, as a company will get a loss.
Black Friday 75% Sale – The Big Lie
So if you can afford to implement only 25% sale, how big brands can offer 75%+ sales? It’s pure math, the excess that you are paying for the t-shirt are more than 25%.
Our Marketing budget is the same during a contract, we don’t increase the budget on November and we downsize our budget in the other months, on the contrary.
The production costs are most likely the same, it doesn’t vary during the year.
So, where that sale came from?
The “big” sale came from the production costs. The production cost for our t-shirt is not 100$, it’s 20$, and the exceed is 2000%. You don’t like your favorite online shop now that you know this, huh?
Basically during the year you were paying 2000% excess for your favorite t-shirt and when you find it on BlackFriday on 75% sale, is “WOW”. Yes it is, but not quite normal.
Are BlackFriday Sales real?
Yes! The BlackFriday sales are real, most of them, there are some shops that increase the products pricing one month before the big day, and then they just cut the pricing in order to get that “sale” effect. This is a bad marketing technique, used by let’s say uninspired marketing agencies, or individuals who want to increase sales, fast, without actual caring about the client.
Those are most awful techniques, and you should stay out from this companies.
And then, there are those 75%, 80%, 90% sales which at their core are sales, and come as good prices for the client, but the big lie was before the BlackFriday, when you had to pay 200$ for a 20$ product.
The +75% sale was just a price correction for the year, within maybe a 10% sale of the actual product.
Don’t get fooled by cheap marketing techniques.
Prepare your Christmas marketing campaign
Try looking for a dedicated marketing agency. Bellow you can find a list of top marketing agencies in 2021 according to Clutch.
Influencer Marketing Agencies are also always a good choice, they often provide both, marketing strategy, social media marketing combined with the awareness of influencers.
Don’t forget to stay informed!