Every year more and more Americans empty their wallets and fill their shopping carts with items they didn’t know they needed to participate in the annual Black Friday Tradition. In 2017, $5 billion dollars was spent by American consumers (Quartz). Black Friday shopping is overall good for the economy because it increases sales for suppliers and decreases prices for consumers.
When stores drop their prices for one day each year, it produces a change in quantity demanded by Americans. A change in quantity demanded occurs when the point on a demand chart moves to the left and down, meaning there are more consumers willing to buy because the price is lower. This situation is unique because when you compare the demand and supply charts, more suppliers are willing to supply at a lower price because they will be able to sell more. Therefore the supply line shifts to the right, they will sell more quantity for less money each. The final chart will end up looking like the image to the left, with the supply shifted to the right and the demand moving down the line. This is good for suppliers because they will end up making more money and moving products that may not have been selling. This is good for consumers because they can buy items at a very low price.
Black Friday can cause a shift in the demand line to the left in some circumstances. One case of this would be a shift due to future expectations. Before Black Friday the demand curve shifts to the left because consumers know that the product will be cheaper in the future. Unlike a change in price, this cause a change in demand of the product and can lead to consumers buying less in preparation for a blowout sale. Regardless of this initial drop of demand, companies can still make up for these losses during the Black Friday sale.
Overall Black Friday blowout sales are beneficial to the economy because they allow suppliers to sell more products and move excess inventory if needed, and also allow consumers to purchase goods a very low prices.
Works Cited
“Black Friday Statistics and Trends.” Fundivo, www.fundivo.com/stats/black-friday-statistics/.
Hassan, Aisha, and Aisha Hassan. “Black Friday by the Numbers.” Quartz, Quartz, 16 Nov. 2018, qz.com/1456840/black-friday-by-the-numbers-savings-store-openings-and-more/.
I would agree that black friday is beneficial for the economy. It essentially is a blowout sale that cleanses out the intestines of department stores, all while satisfying the junk hoarder inside every consumer. Essentially, black friday is a trade of junk that’s good for the economy because it displaces sold goods into consumers hands.
ReplyDeleteWhenever I hear of black Friday, I never think of how it is beneficial to the economy/stores. This opened my eyes as I usually just picture it being a weekend for crazy shoppers but not how it benefits stores in ridding of certain products as well as a time for customers to get awesome deals on the newest trends or items. I also think black Friday is beneficial for stores to see which items have the highest demand and the most purchase, then they can make more of that product and over time, raise the prices of those specific items. I also thought it is crazy how much money was spent on Black Friday alone in 2017 that you stated in the beginning. Black Friday is also beneficial because some people are looking forward to it all year and everyone knows when it is, so stores can release their deals early, which will make some products go faster and demand go higher.
ReplyDeleteBlack Friday sales is one of the most popular shopping days of the year. Although I rarely partake in the camping out and vicious shoppers, I often visit the stores later in the day on Black Friday, and see what is left over. It amazes me how scarce the shelves are, and it makes me wonder how much money the store is actually making. I think Black Friday is one of the most economically smart marketing tactics ever because stores make so much money from them. While their products are nowhere near usual price, many more of each product is sold than would be at normal price. Plus, often times product prices are marked up significantly higher than what it is actually worth, so the stores can afford to sell the products at a lower price than usual, and they will still make money. The only downfall to Black Friday that I can see is the decrease in sales in the weeks leading up to Black Friday. Many customers, including myself, restrain from purchases in anticipation of the upcoming sale. Based on this, it is easy to understand why the supply and demand curve shift in the weeks before Black Friday, as shown in the chart. Since this article points out that about $5 billion was spent on Black Friday in 2017, it would be interesting to see how that number compares to an average day of the year.
ReplyDeleteI really like how you chose this topic because it never even crossed my mind that black Friday impacts both party's within the economy. It interests me to see that in this scenario both parties are benefiting.Your post also lead me to think about the combined impact of black Friday and cyber Monday. Considering the rapid increase of technology use. I read into Black Friday vs. cyber Monday and found that, " In 2017, CM sales hit $6.6 billion in the US, a new record and nearly double the 2016 number. It also edged out BF's $5 billion, which was also a record" https://www.cnet.com/how-to/black-friday-2018-vs-cyber-monday-whats-the-difference/ THat statistic really puts how much BF and CM benifit the economy.
ReplyDeleteBlack friday is a huge tradition for many people all around the country. Everyone loves the thrill sometimes of black friday shopping more than the deals themselves. It 100% makes sense why the line on the demand graph shifts right and down because black friday is the most populated day for shoppers out of the entire year. When the stores lower their prices, it attracts more customers, causing an increase in demand, all on one day. On top of the demand increase, stores are getting even more customers by having the ridiculous sale for only one day. I also agree that black friday is a very smart idea economically because stores are gaining more income and getting rid of excess inventory and creating room for new products.
ReplyDeleteBlack Friday is something I participate in every year, yet I never realized why this event occurs and realize what it does for our economy. Looking at your research and reflection upon Black Friday, I noticed how this event was specifically planned. At this point in the year, that Black Friday happens (November), I’ve noticed that many stores are trying to get rid of many summer/ fall items and providing winter specialties. At this point many people are thinking about Christmas and what to get their family members, but keeping in mind there many not be much money to spend. Black Friday presents the public with items that are from summer, fall and winter, in which it’s ran a cheap price, perfect for providing many Christmas presents. Black Friday allows businesses to make most of their money, by selling old and new products and allowing for more supply of new and innovative products. It’s like garbage day for the stores, but getting money for it. They get rid of the unwanted items, but still get money for them. It’s the perfect national event to boost the economy.
ReplyDeleteI also did my blog post abut this topic for this semester and hearing everything from another person put it in another way is so interesting. I take part in this every year and always spend more than I tell myself I am going to because I can never get enough of the deals. All of the sales make you want to just keep spending and spending and eventually you look at what you have spent and don't realize how much you spent because you thought you were saving all this money and it all just adds up. This day allows businesses to take advantage of the buyers by making them feel like they are going to same so much money but by them thinking that its going to make them want to buy more. When stores do this they basically take everything they want to get out of stock and out of their way and put it on sale but make it look nice and organized until the buyers get a hold of it. No matter how many times I tell myself I wont go black Friday hopping I ALWAYS end up going and spending more than I want to and do it every dang year.
ReplyDeleteBlack Friday is a huge business time of year. It is both beneficial to consumers and sellers because it allows for people to purchase wants or needs at extremely discounted prices while also allowing sellers to remove old product off the shelves to make room for there new holiday merchandise. All And all I think black Friday is great for the economy as it it able to create large amounts of revenue for the economy in such a short period of time.
ReplyDeleteI would agree that black friday is a very great thing for the US economy it helps suppliers get rid of their produces and consumers get things that they wouldn’t get on a normal day for really cheap, this is a great things that we have put in place that helps out both suppliers and consumers.
ReplyDeleteI agree with this, Black Friday is very good for the economy. Could Black Friday start to hurt businesses? People are expecting super low prices on all of their favorite items, but could these low prices eventually get too low. Stores are competing with each other for the lowest price. This lowest price could get as low as the price it takes to make the product, or even less. At this point, Black Friday is no longer helping the economy. People get to buy things at extremely low prices, but that might mean that after Black Friday stores have to raise prices to somewhere higher than they usually are.
ReplyDeleteI agree that black Friday can help a company have one the biggest money making days of the year, but wonder why the prices are not normally cheap like they are for one day. I guess it builds up anticipation that people have to wait to get these deals that may help cover expenses for a day.
ReplyDeleteI read that Post and got it fine and informative.
ReplyDeleteBlack Friday offers
I read that Post and got it fine and informative.
ReplyDeleteBlack Friday can be defined as the revenue generating opportunity for the business and bundles of offers for the shoppers. Black Friday is celebrated after the Thanksgiving day and Thanksgiving falls on fourth Thursday of November.
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