Black Friday is not a new term in business. Over the years many retailers have continued to popularize black Friday which has seen consumers take advantage of the sales. Big businesses may be making the most of black Friday but unfortunately the same cannot be said about the smaller businesses.
Let’s take a look at some of the reasons why small businesses do not take advantage of Black Friday sales.
1. Black Friday is not the best reflection of the holiday sales
Majority of businesses according to a recent survey look forward to the holiday season. It is when they make the most revenue. However, while this is so with 64% of the businesses interviewed, only the remaining 37% claim that black Friday is helpful in determining the final results of the holiday season.
In fact, even smaller businesses believe that black Friday has very little impact on their final results. This is hard to argue with when you consider how hard it is for SME to compete with the large businesses, especially in sales and marketing costs.
2. Smaller businesses find it hard to compete with the advertising strategies of larger businesses
The fact that the larger businesses have more resources means that they have taken over black Friday and continue to pout huge amounts of money to promote sales on this day. For SMEs, it is extremely difficult to compete since they spend only a small portion of their revenue on advertisements.
3. Small businesses prefer small business Saturday
Another excellent idea for the smaller business is small business Saturday which came up as a way to compete with Black Friday and Cyber Monday. Its main function is to promote patronage of the smaller enterprises.
For smaller businesses that have made use of this concept, they have claimed an increase in sales by up to 23%. The term is growing in popularity as well and many SMEs are joining in.
4. Small businesses are unable to cut prices like the big retailers
It’s no secrets that big retailers are able to slash prices and provide more discounts due to the simple fact that they buy in bulk. The big players in the industry can still get good results. But for the SMBs it’s near impossible to make the same level of price cuts and remain profitable.
This puts them in a situation where they can only sell at high prices to remain afloat. Granted, you may have your loyal customers but things get difficult with black Friday which is mainly about cutting prices.
5. The best brands aren’t put up for sale
You will get the best deals on items such as electronics TVs, kitchen appliances and clothing. However, the brands aren’t what you would go for during your normal shopping days. Top of the line brands such as Sony or LG will often not be offer.
You will get cheap prices but the products are likely to be cheap as well. Even the clothing is likely to be of poor quality compared to the full priced items.