Economy and Black Friday

Anything non-Black Friday/non-deal related

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tnt17
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Postby tnt17 » Tue Sep 30, 2008 7:10 pm

Not too big on Vizio, you get what you pay for. But i camped last year @ C.C and got my 50" Samsung dlp slim hd for $700. Hoping to pick up 32" for the bedrooms this year.

PokerDad
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Re: Economy and Black Friday

Postby PokerDad » Tue Sep 30, 2008 7:10 pm

Expect deals to be very average at best. Maybe 10-20% more off the prices than the average Saturday morning sale at local scores, but that's it. Retailers aren't going to be looking to lose this year with the horrible economy.

The Zach101 wrote:Ok so im not an expert at the economy and I dont know everything, but what do you think? Is the economy going to change prices of anything? Higher? or Lower?
I hear about this huge bail out, and if im not mistaken wouldnt that cost us some how? lol remember I dont know a thing about our economy so dont think im crazy if im way off. :D

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Postby PokerDad » Tue Sep 30, 2008 7:12 pm

Sorry, but it will be the exact opposite of what you are saying, Black Friday sales reduce profit margins to get people to buy, this year the stores can't afford to reduce their profit margins, they are the lowest in a decade already.

cbk523 wrote:I think there will be some great online sales in that case!
The retailers are not going to take any chances....they want their sales to top last years....

tifftiff2
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Postby tifftiff2 » Tue Sep 30, 2008 8:18 pm

You have to remember though, that Black Friday is the biggest day of the year by far for retailers. I've already seen changes at Best Buy in how they are trying to save some margin now, and it leads me to believe we'll have some pretty nice deals out for BF. Retailers aren't going to "lose out" on BF, even with the extreme lack of margin.

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The Zach101
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Postby The Zach101 » Tue Sep 30, 2008 11:03 pm

But isnt it true though that they make the sales in oreder to sell more....so wouldnt they be getting mroe money??? once again im no where near knowledgable in this stuff.
Last edited by The Zach101 on Fri Oct 03, 2008 7:44 am, edited 1 time in total.

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Russell Burrows
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Postby Russell Burrows » Wed Oct 01, 2008 12:07 am

The Zach101 wrote:But isnt it tru though that they make the sales in oreder to sell more....so wouldnt they be getting mroe money??? once again im no where near knowledgable in this stuff.



It works like this:

A loss leader aka doorbuster item to draw the crowds with the downside being you the Store loose two hundred dollars for every doorbuster item sold............

Geee poor BB, CC, Target, Walmart, etc. loosing out all that money............well not exactly.

As you are in the store getting the doorbuster there are hundreds more shoppers getting ubs drives 4 GB 29 dollars each and 8 GB selling for 39 dollars each and they go ehhh lets get some since they are ten bucks lower than usual.

Except those 4 GB usb drives cost BB 12 dollars each and those 8 GB drives cost BB 18 dollars each.

The stores get back money from hundreds of thousands of shoppers buying the small things here and there like bluray, dvd, cd blank media, ram upgrades, computer hard drives, pc cases, hdmi cables at "only" 49 dollars that cost BB four dollars each!

Sales of operating systems, home theater units, front projectors, printers, yada, yada, yada.............hundreds of thousands of dollars per store.

If it looks like the folks are going to be hesitant to come and shop then the usual tactic is to offer a slightly better deal on a loss leader.

And also there is a reason that Best Buy has a five item limit on the doorbusters and there you go.

Did you ever notice on why the needed items like milk and soda are way at the back of the walmart store?

Its to get you to walk past all of the other profit makeing items in the store to negate the effect of the loss leaders like milk to get you to buy jeans, school backpacks, toys, shirts, etc.

In short I expect that due to an economic downturn to expect better than average lossleaders at BB, CC, Target, etc. since there is no way they are going to take a chance on shoppers not coming to shop for the other NON doorbuster items.

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lovebf
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Postby lovebf » Wed Oct 01, 2008 12:58 am

Russell Burrows wrote:
The Zach101 wrote:But isnt it tru though that they make the sales in oreder to sell more....so wouldnt they be getting mroe money??? once again im no where near knowledgable in this stuff.



It works like this:

A loss leader aka doorbuster item to draw the crowds with the downside being you the Store loose two hundred dollars for every doorbuster item sold............

Geee poor BB, CC, Target, Walmart, etc. loosing out all that money............well not exactly.

As you are in the store getting the doorbuster there are hundreds more shoppers getting ubs drives 4 GB 29 dollars each and 8 GB selling for 39 dollars each and they go ehhh lets get some since they are ten bucks lower than usual.

Except those 4 GB usb drives cost BB 12 dollars each and those 8 GB drives cost BB 18 dollars each.

The stores get back money from hundreds of thousands of shoppers buying the small things here and there like bluray, dvd, cd blank media, ram upgrades, computer hard drives, pc cases, hdmi cables at "only" 49 dollars that cost BB four dollars each!

Sales of operating systems, home theater units, front projectors, printers, yada, yada, yada.............hundreds of thousands of dollars per store.

If it looks like the folks are going to be hesitant to come and shop then the usual tactic is to offer a slightly better deal on a loss leader.

And also there is a reason that Best Buy has a five item limit on the doorbusters and there you go.

Did you ever notice on why the needed items like milk and soda are way at the back of the walmart store?

Its to get you to walk past all of the other profit makeing items in the store to negate the effect of the loss leaders like milk to get you to buy jeans, school backpacks, toys, shirts, etc.

In short I expect that due to an economic downturn to expect better than average lossleaders at BB, CC, Target, etc. since there is no way they are going to take a chance on shoppers not coming to shop for the other NON doorbuster items.


I totaly agree! Great explanation!

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cmac1337
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Postby cmac1337 » Wed Oct 01, 2008 1:24 am

i work for dollar tree...and basically for us we call it "high profit margin" or "typical profit margin"..

basically...bleach, most grocery items, and things like that cost dollar tree between 75 to 80 cents a piece, meaning that we get a marginal profit of 25 or 20%....that's low or typical...however...

items like plastics, party items, or kitchen accessories are high profit margin costing us about 25 to 50 cents a piece, meaning we get up to 75 %....we always "tie in" high profit items with low profit ( plastic buckets or plastic gloves beside bleach or chemicals.....party supplies by grocery thems or chips and dips....can openers by the canned goods...and so forth )

its all about tie ins and gaining profit.

at a store level...it doesn't mean a whole lot. at a corporate level however, it means alot more and the company gains millions of dollars.

(random side note...the dollar tree i work at pulls in close to 2.1 million dollars a year...that's ridiculous for a dollar store...go figure...usually about 500k in "fourth quarter" meaning the time from labor day to martin luther king weekend)
We Call Ourselves the "Black Friday Tailgaters (BF Tailgaters)"

1st in Line at Best Buy Store #1446 in Fultondale, AL for 7 straight years.


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Vols44
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Postby Vols44 » Thu Oct 02, 2008 9:38 pm

I'm ready for some deeply discounted items this year. The past two BF's had deals on items that were put on clearance afterwards. The slumping economy will fuel the rush for big box outlets to wage price wars.

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redkel
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Postby redkel » Thu Oct 02, 2008 10:38 pm

Great explanation, Russell.

Doorbusters and other great deals are for getting you in the door. Period. They are counting on you picking up other profitable items to offset their COGS (cost of goods sold) on the "deals." More and more retailers are subscribing to the "make it up in volume and market share" mentality that Wal-Mart adopted ages ago.

And even though BF Circulars have been printed already -- it doesn't take all that much to make new plates with new pricing and reprint. The hard work (layout, pre-press, etc.) is already done. It seems that the gloom and doom of the economy has barely touched holiday shopping the past few seasons (at least judging by what you all spend or are budgeting). Or maybe it's because we're all such smart shoppers, that we're immune to all of it!

And let's face it. A lot of the reason we're in such an economic crunch is poor budgeting and spending control on an individual and family basis (I'm not saying that any of you BF'ers are like that!). Somebody with a $10,000 balance on their credit card and barely making their house payment should not be going out and spending $1000 on holiday gifts. Forgive me if that offends, it's just an opinion.

So -- help out another BF'er and go spend your money at Sears! LOL. I should make bumper stickers...

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guitarist19862005
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Postby guitarist19862005 » Fri Oct 03, 2008 6:13 am

redkel wrote:And let's face it. A lot of the reason we're in such an economic crunch is poor budgeting and spending control on an individual and family basis (I'm not saying that any of you BF'ers are like that!). Somebody with a $10,000 balance on their credit card and barely making their house payment should not be going out and spending $1000 on holiday gifts. Forgive me if that offends, it's just an opinion.

So -- help out another BF'er and go spend your money at Sears! LOL. I should make bumper stickers...


Couldn't agree with you more about the spending situations. Also, do you work at Sears?

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redkel
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Postby redkel » Fri Oct 03, 2008 7:24 am

Don't work at Sears, but I feel like it sometimes! LOL. My husband does though.

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guitarist19862005
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Postby guitarist19862005 » Fri Oct 03, 2008 7:32 am

redkel wrote:Don't work at Sears, but I feel like it sometimes! LOL. My husband does though.


Yeah, I saw that on another thread. I just never came back here to correct my post.

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steffj89
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Postby steffj89 » Tue Oct 07, 2008 8:40 am

I am thinking so far that the recent downturns in the economy are going to make a change as to who is doing the shopping as well as what gets spent.

We were prepared for BF this year until some idiot in Wisconsin turned right thru the front half of my Husbands truck two weeks ago. There went my BF budget up in smoke...had to buy a new truck.....

hoping the ins settlement evens us out a bit and comes in before BF
Steff

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Postby BFPrincess » Tue Oct 07, 2008 9:33 am

I can't believe the average person carries a $10,000 credit card balance! :shock: I would be in Panic central if I was anywhere near that.

Last year BF was awesome for me because I'm in Canada and at this time last year our dollar was worth more, so I was getting "extra sales" kind of.

BUT this year I have money from doing on the job training that's been set aside for BF, so I'm not spending my own money anyway. I'm all set to shop! :D


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