Goofyernmost
Well-Known Member
It kinda is. The Christmas season is when profits are made, but you have to have a pretty big group of people coming in between Black Friday and Christmas to make up what it cost to do Black Friday. It does help clear out some items that normally wouldn't sell real well by dropping the prices close to the ground. But, it has turned out that those losses are so big on the really wanted items that it gets to be impossible to make up.Black Friday is usually the day retail stores turn losses into profits. According to one theory since the 1980s. No idea if that's true. It's really the whole month now to keep violence down.
Edit: According to the history channel, it's fake news.
Retail traditionally work on a 30 percent mark-up. 20% of which is to cover all costs, utilities, payroll and other misc. expenses. If you knock just 25% off a product you have pretty much killed yourself because wholesalers do not have any black Friday sales for retailers. I notice a decline in interest in recent year primarily because of internet shopping, But the retailers are usually hoping it fizzles away.
Most of the items are big ticket and a large portion are things that customers didn't intend to buy for Christmas, but wanted to take advantage of the cut prices while they were there. That cut into what they planned to spend for Christmas and definitely caused fewer sales for regular items sold at retail prices throughout the year thus hurting the stores even more.
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