By: Ericka Schaeffer
Black Friday is one of the most influential marking [marketing?] techniques in the American economy today. Black Friday, as many of us know, is the day after Thanksgiving in which stores open early and there are promised promotional sales if you shop in the early hours. The word “black” in Black Friday originates from the retailers making profit “in the dark [black].” What once started in Philadelphia soon became a nation wide event where store seemed to not just open at 6 a.m. but 4 a.m. and even earlier.
From an economic standpoint, this day is greatly important to growing businesses survival. According to Buzzfeed.com, This is the largest day of sales every single year with an average of 225,000,000 people participating and a collaboration of $11,4000,000,000 spent on this day alone by consumers.
This day solely relies on the law of demand working out it’s course. If the price of a good or service decreases, the demand will rise and it definitely will on Black Friday. Most consumers leave most if not all of their holiday shopping into this one particular night because they expect the prices to drop dramatically. The fact of the matter is, the big sale items usually run out fairly quickly, supporting the law of supply, so even if you woke up at 3 in the morning, it is still not guaranteed that you will get on sale items. This would be considered a shortage. The consumers of America’s opportunity cost for receiving those “lower” prices is losing a few hours of sleep and most people are willing to do that just to save a few bucks.
With all of the buying and producing in just this single day, there is a great increase in circulation of money which also has a great influence on the American economy. This annual event is crucial for both consumer and retailer to achieve both saving and profit goals allowing the economy is grow. That is why Black Friday is a great economic technique.
Sources:
"BuzzFeed." BuzzFeed. N.p., n.d. Web. 10 Nov. 2013. <http://www.buzzfeed.com/amyodell/9-stats-about-black-friday-that-will-blow-your-min>.
"More People Seek Greater Bargains And Spend Less During Black Friday Compared To 2008." Zero Hedge. N.p., n.d. Web. 10 Nov. 2013. <http://www.zerohedge.com/article/more-people-seek-greater-bargains-and-spend-less-during-black-friday-compared-2008>.
I thought you picked a great topic regarding something we are all going to encounter in the next week or so. Every year you hear crazy stories about black friday and how people get hurt, get in fights and even a case reporting someone dying. I really liked your topic and I thought you had a great explanation on the whole thing especially when you talked about the facts such as how many people actually attend the black friday shopping. Great job!
ReplyDeleteVery interesting point on black Friday shopping. It is really amazing how one store in Philadelphia started the largest shopping day in the year. One number I kinda am questioning is that 225,000,000 people participate in black Friday shopping. There are around 270 million people in U.S. and it is hard to believe that over 200 million of them go black Friday shopping. Other than that it is a really good piece about how a small change to price can lead to a huge increase to demand.
ReplyDeleteI also had the same concern about that 225 million number. Although the decrease in price does play an important role in the massive increase in demand, there are other factors at play. Some people love shopping so much that they treat Black Friday almost as a holiday. I know some people that would gladly get up at 4 am and head to Wal-Mart just because they like the thrill. I would bet that if you only dropped prices no lower than a normal sale people would still kill each other to get in the door.
DeleteThis was a great topic considering that Black Friday is just around the corner. But I found this very interesting and didn't know that the name "Black" meant in the dark for companies and by having these sales it helps them out a lot. From my personal experiences yes Black Friday can get very chaotic but it is something that everyone looks forward to. I agree with you that this is a great influence on Americas economy. By taking a look at the graph it is only increasing which is a great thing.
ReplyDeleteBlack Friday is a great example of how supply and demand can work. Larger companies, especially, make the most profit because of their popularity. Personally, I believe that growing businesses do not flourish on this day because several people aim towards the more expensive brand names. I liked how you clearly explained the law of demand and how an item becomes more in demand when the price goes down. When an item is regular price, less people will want it. With Black Friday, like you said, both retailer and consumer can benefit, which what makes this day so popular.
ReplyDeleteEricka, you did a great job explaining how supply and demand are affected by Black Friday. Like Justin, I find it very hard to believe much more than half of the United States participate in Black Friday shopping. It's obvious that sales are highly influential to the consumer's tastes, especially on this day. I think that because of the such low sales, people end up buying things they wouldn't have otherwise bought, showing the power that industries hold over their consumers.
ReplyDeleteThat was really interesting on what you said about "black" originates from the retailers making profit "in the dark." Also, the goods and services increase tremendously when it is Black Friday just because there will be a shortage of product in the aftermath of the holiday. This was also a great topic to talk about considering that Black Friday is right around the corner.
ReplyDeleteI like the background that you gave on the holiday, and how it originated and became so popular. Your explanation about the economics behind this day was really good and clear. The demand increasing because of the low prices is a good main point for this topic. The graph that you included was a great visual too. This was also a good topic because it's so soon.. good job!
ReplyDeleteBlack Friday and Cyber Monday really boosts the economy because during the holidays is the only time of the year that companies are in the "green zone" and are making a profit. All other times in the year, companies are in what is called the "red zone" and are losing a profit. The holidays make up immensely for their loss and most of their income is provided by these two days.
ReplyDeleteThis was a great topic. Its interesting how black friday uses the name 'black' because it gets the companies out of the dark. Also, this is a perfect example of supply and demand and how they directly relate with eachother. Lastly, it is crazy how much impact black friday and cyber monday have on our economy. These two days alone can help companies make a profit, and these two days greatly help our economy.
ReplyDeleteBlack Friday is known for its crazy shoppers and deals. For some of the deals, they are not the best on Black Friday and can still get better during the holiday season. People go crazy for the deals because it is the best way for them to afford gifts for their loved ones. Go out all night and wait in line/outside the store for hours waiting to get that one item. A lot of items go on sale and are purchased because of the great deals. Even though the items are on sale, the stores are still making a profit, just lesser than they did before but could be more because not everyone would buy that item if it weren't on sale. The sales pull people into buying more of that item than they would have before or buying an item because they have noticed it is on sale.
ReplyDeleteThis topic is very interesting due to the fact that Black Friday is around the corner. I never knew that the "Black" in Black Friday represented the after dark openings for the companies selling. This is a great example of the process of supply and demand and how the sellers get pulled in buy the sales. Good job!
ReplyDeleteThis is a great article seeing how Black Friday is right around the corner. Black Friday might not only seem like the best shipping day for consumers, but for a chance for economists and analysts alike to see how the changes in prices affect the amount Americans spend. I like how you tied in the law of demand and the opportunity cost of going to Black Friday as it gives something people can relate to. I had to agree with Justin that I couldn't believe around 225 million people go shopping on this particular day! That’s a lot of people but more importantly, a lot of money going into businesses and the government. Black Friday is a day where both the consumers and businesses can benefit from. Nice job!
ReplyDeleteBlack Friday is one of the most anticipated shopping days in the year and it is approaching quickly. It has the "best" consumer prices and seems to take away all cost and keep the people happy. The only reason companies are receiving an economic profit is because they shift the demand curve right so that they lower their prices at a higher output. This is a great example of how supply and demand works and how the opportunity cost people believe in on going to stores on black Friday are helping them in the long run. Black Friday is a consumer/ business benefit yet for some places it falls more into one hand than the other and that's what consumers have to watch out for. The normal goods, inferior goods, and every other good is sold at a low price but they get drawn in because its something they want not something they need.
ReplyDeleteBlack Friday and Cyber Monday are two very important sales for the American economy, but it can also be a problem if individuals are spending money that they do not own. These marketing holidays can create debt and inflate sales and revenue before a cycle of recession can occur.
ReplyDeleteBlack Friday is a day that really is important. Not only is it good for the stores that participate in the Black Friday event but it is also good for the consumers and the over all economy. Black Friday is a day in the year where it produces a large amount of goods sold thus gain a lot of money. This helps to pump some money into the economy during a day of the year. With the low prices on just about everything imaginable it also prompts consumers to go out and spend more and buy things thus giving more money over. It's good that this isolated event spread out through the entire country for it allows every to participate it and give large sales reports.
ReplyDeleteBlack Friday is a great way to help out the economy. With there being low prices on everything, people will go out and spend a lot of money, ultimately getting more money back into the economy. It also helps out any store if the are in danger of closing because with this day, they can sell a lot of items, which can then bring in more money to possibly save their store.
ReplyDeleteYour are right that this is a great opportunity for business owners across America to capitalize on a single day of enormous economic boost in the country. People are beginning to make black Friday shopping a tradition and turning into into more than just a bargain hunt. It has become a fun thing for shoppers to do which has increased the possibilities for companies to capitalize on this.
ReplyDeleteEven though I participate in Black Friday every year, I hadn't realized the huge economic impact it has. Before learning about the law of supply or law of demand, I would think that it would be a negative time for companies due to most of their merchandise being swept away dramatically with all of the huge sales. But now I can see how the day is a great economic opportunity. It creates a large increase in buying by consumers, creating profits for the companies, and then possibly creating more income for certain employees (with bonuses or raises for working such a crazy time). This all creates a big expansion in the economy.
ReplyDeleteBlack Friday is a great boost for America's economy and families. I can recall so many memories over the years and how much fun it had been and I think really many people have taken on this day as sort of a family tradition just as mine has. This day brings in millions of needed dollars every year and because now so many treat it as a tradition I think this day will continue to benefit the American economy for years and years.
ReplyDeleteI can see exactly how Black Friday is great for the economy! Almost everyone is very happy at the end of the day, the costumers got what they wanted (maybe) and the stores made huge profits! I've been going for the past 5 years, and I know exactly how it goes but how it is an amazing way for us to save money and the stores to get money.
ReplyDeleteI have actually never gone shopping on Black Friday before, as crazy as that sounds, but I do know it is very popular and so many think of it as a holiday in itself. I find it crazy just how many people participate and get so hyped up for a day of shopping. Sure there are great deals, but sometimes I wonder if it is worth it as I hear so many times about the massive crowds of people; it's crazy what some people will do just to get a good deal. But I do agree that it is a great boost to America's economy as the customers are saving money and stores are getting tons of business. Overall, though I am not a participant in this "big day", if it helping the economy then I am all for it.
ReplyDeleteI personally enjoy going to black Friday because of all the madness. Black Friday is used as the kick off for the holiday season, which many individuals love to get a head start on. This holiday uses the basic law of demand in that the lower the price of an item, more consumers will want to buy that item. Black Friday is an instant economic power supply. The fact that Black Friday is only one day benefits the economy because it is not a long drawn out sale weekend. It causes tons of shoppers every where to rush to stores in hopes of getting the best bargain. Black Friday is an awesome economic strategy!
ReplyDeleteI have always known that Black Friday is a huge event that people plan for months in advance, but I had no idea just how much money was spent on that day alone—it is truly shocking. With that being said, it is also obvious that these greats amount of money being spent serve as a boost for the economy; the cheaper the products, the more people will be willing to spend on those products, and the more products will be sold. With Black Friday incorporating sales so low, different stores can ensure that they will sell an immense amount of products.
ReplyDeleteI love Black Friday shopping, and it truly is crazy how people want to get ALL their shopping done on that one day! People who are known to this crazy day should know that most times they can not always get what they want because sometimes the quantity supplied is less than demanded. Personally, I believe that Black Friday is a good thing for the economy because it brings so much attention to one day which everyone loves. With the amount of products selling it should be a good day for the economy.
ReplyDeleteLike Allie said, I knew Black Friday involved a large amount of money but I had no idea it was $11,4000,000,000! But I have to wonder how much of that is given back to the customer because of returns. Is that the amount spent on Black Friday or is that the profit resulting from Black Friday? Whatever the answer, I believe Black Friday is beneficial to our economy. It makes up for some of the loss that occurs throughout the rest of the year. The holiday season as a whole provides most of business' yearly profit. I'm sure stores have been preparing for Black Friday for weeks. It is a day they can be sure that lowering prices will result in greater revenue.
ReplyDeleteAs the economy changes, so do prices. Although the staggering things bought and the prices are amazing to me, the profit of the holiday is amazing. People demand what they want and the new price is very discounted. By lowering prices, it draws people in making more service and money happen. As the holiday approaches, more and more people come in for products. The economy is supposed to be boosted as this holiday happens.
ReplyDeleteBlack Friday is still a huge part of the post Thanksgiving gift craze, as you proved, however, I think I may be paraphrasing another person on this blog, Cyber Monday is making a huge move towards surpassing Black Friday in number of sales. The convenience of not needing to leave the house in the God awful hours of the morning, the fact that you can click a button and go back to sleep will drive hoards of people away from the midnight lines and back into bed. For more info on this David Heinen wrote about it in a previous post.
ReplyDeleteWhile Black Friday is an excellent way to get discounts on items, there is always an incident that turns violent. People get so obsessed with the idea that they need these goods at a discounted price, it gets out of hand. That's part of the reason why people are moving more towards online shopping on black friday and cyber monday, to avoid the crowds. But when someone spends say $600 dollars on a TV that was originally $1000, you aren't saving $400. You're spending $600 dollars on something that you were fine without yesterday.
ReplyDeleteI think Black Friday is absolutely amazing idea. It allows people to buy stuff they otherwise wouldn't be able to afford. It also benefits the stores as they sell a lot of stuff, and even though they wont make as much profit on each item the amount they sell adds up to an amazing profit. I wish we had something similar in Denmark, and i'm certain i'm the only one who thinks that
ReplyDeleteI love black Friday so much but like Steve said I completely agree with him, you feel as though you are saving so much money on all these different "goods" but in realty you are just buying as much as you can because of the huge sale prices, but before you bought those items you were perfectly fine before it. I agree with the fact that it is definitely a boost in Americas economy for a day or two.
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