Don’t let Black Friday specials leave you without a penny, expert weighs in

To say many are tempted to splash some cash this Black Friday sale season would be an understatement.
The head of credit from Standard Bank South Africa Tumelo Ramugondo gave sound advice on how to remain grounded.

Ramugondo understands the hype over the Black Friday phenomenon but do the prices drop? We asked.

“While some deals are genuine and represent significant savings, not all discounts may be as beneficial as they appear. Consumers should compare prices across different retailers to get the deals best suited to their needs and keep in mind that the intense shopping environment can lead to impulse buying and overspending. With Black Friday occurring close to the holiday season, people may be more inclined to shop for gifts and take advantage of perceived savings.”

He added the reason the phenomenon was received with the same excitement every year could be attributed to psychological factors.
“Retailers invest heavily in advertising, creating a sense of anticipation and excitement leading up to the event. The prospect of significant discounts also creates a sense of scarcity. The brain’s reward system is stimulated when people believe they are getting a good deal, contributing to the desire to participate in Black Friday shopping.”

He said people tend to hope for specific deals on Black Friday but often the luxury items they prefer are not usually what is on sale.

“To avoid the rush on a day, most retailers are often spreading out their deals over multiple days or even through the whole month which means customers have access to deals earlier or longer and the actual day of Black Friday becomes less relevant to them. A lot of retailers do have deals but not often as big as people expect and an item could still be out of budget even with the deal.”

He said consumers usually spend on essentials such as groceries, “But we have also seen a large portion of the spend going towards retail clothing and footwear, department stores for big value items like furniture and appliances, as well as fast food and dining out.”

He shared these money-saving tips:

• Set a budget: Determine how much you can afford to spend on Black Friday and stick to that budget. Having a clear spending limit helps prevent impulse purchases and overspending.
• Create a shopping List: Make a list of the items you genuinely need or have been planning to purchase. This helps you focus on essential purchases and avoid being swayed by attractive but unnecessary deals.
• Research prices and deals across retailers: This allows you to identify genuine discounts and avoid retailers that may inflate prices before offering a discount. Don’t settle for the first deal you see. Also, ensure that returns and refunds are still possible on the offers.
• Time is money: Try shop online rather than being part of the in-store rush to save you time. Online deals could also sometimes be better than in-store.
• Use cash back and rewards: Take advantage of Standard Bank’s UCount rewards by transferring your funds from your cheque account to your credit account as this will allow you to earn more in UCount rewards points.

“Ensure you prioritise what is needed over wanted. Analyse deals closely and what it means for you when purchasing. Think about how the purchase affects your financial security over the long term.”