How to avoid getting scammed at the Black Friday bargain carnival

With retailers being urged to advertise honest and genuine savings this Black Friday, this is what consumers should be on the lookout for.

It’s been tough for many companies this year, but there was good news for retailers earlier this week when Stats NZ revealed that sales had risen 7.4% year-on-year in the September quarter, the biggest increase in nearly 25 years. . And while that doesn’t make up for the significant Covid-related losses recorded in June, it’s a promising trend for retailers with the holiday season looming.

It’s no wonder then that retailers are doing their best with an estimated 50% of New Zealanders willing to spend an average of $ 464 on Black Friday this year – but according to PriceSpy data from 2019, at least the 9% of the products listed on the site. It increased in price the week before the week of Black Friday and went down again on Black Friday to make its offers appear more attractive.

“When we dig into historical product price points, we can also see that flash sales days, like Black Friday, don’t necessarily offer the cheapest price,” says PriceSpy’s Liisa Matinvesi-Bassett. “Our research found that of the top three products that people were looking to buy last Black Friday, all of the items could be bought for less before sale day.”

On Thursday, the Commerce Commission issued a warning to companies urging them to be honest about their agreements with consumers. “We remind retailers to make sure advertised savings are genuine savings, and we remind consumers to research, compare and check to make sure they are getting the deal they think they are getting,” Commerce Commission Chairman Anna Rawlings said.

“For example, if a company claims that the price is 50% off, its customers should save 50% off the usual sale price … Companies should not raise prices before a sale to claim a higher discount on the time of sale. “

Questions about pricing have already been raised at Dick Smith, with a consumer report Apple AirPods are priced at $ 219 last week, $ 225 on Tuesday, and $ 229 on Wednesday. On Thursday and Friday, the AirPods dropped to $ 225.

Shoppers in Dublin before Black Friday 2017 (Photo by Artur Widak / NurPhoto via Getty Images)

When it comes to the discounts that consumers believe they will get, it is clear that there is a significant gap between expectations and reality. On average, New Zealanders expected a 32.3% discount on Black Friday, according to a PriceSpy survey. In reality, the average price drop recorded in 2019 was only 5.1%. Mobile phones, which are often one of the most popular items on Black Friday, recorded an even lower average discount of just 2%.

Last year’s Black Friday also saw a handful of products (10%) actually going up in price. The Huawei P20 Pro, for example, sold for $ 749 on Black Friday 2019, but it sold for $ 577, or almost $ 172 cheaper, just two weeks earlier.

Despite questionable tactics and a few less important deals, Black Friday still offers the best opportunity for shoppers to grab a bargain before Christmas. Matinvesi-Bassett says that while Black Friday is more associated with tech products, non-tech categories such as beauty and health (9%), home and garden (9%), and fashion and accessories (7%) offered much better average savings. .

In addition to the usual pre-Christmas spending spree, there are a variety of reasons why New Zealanders seem more than eager to open their wallets during a global pandemic, including pent-up demand, better online shopping systems, a resilient national economy. and “nest building” because we spend more time at home.

According to online shopping platform The marketSome of the more popular products leading up to Black Friday include camping gear and outdoor activities as more New Zealanders are vacationing in the country than ever before, and various household items as people look to make the most of the where they currently live. LED light strips, for example, have seen a 700% year-on-year increase, while massagers, especially handheld ones, have increased in popularity by more than 30,000%.

Read more:

What is Black Friday? And are the New Zealand deals a bargain or a flop?

Black Friday Marketing Tricks and Four Ways to Avoid Falling in Love with Them

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