Do not get sucked into overspending this Black Friday
Black Friday was unheard of in South Africa ten years ago but research shows that consumer behaviour has reached frenzied levels over the past five years.
As payday arrives, the bank balance swells and the anticipation of the Black Friday deals become overwhelming. The once unknown American import has captured the imagination and wallets of South Africans, but they are warned to exercise caution this coming Friday.
Black Friday was unheard of in South Africa ten years ago but research shows that consumer behaviour has reached frenzied levels over the past five years. Black Friday Global is an international retail tracker whose statistics claim that South Africans’ interest jumped by 9 900 per cent between 2014 and 2019, compared to global growth of 117 per cent during the same period since local retailers began their mass coordinated marketing strategy.
In another alarming statistic, Bankserv reveals that South Africans swiped an astounding R6 billion worth of Black Friday transactions, both in-store and online, last year. This figure is up 106 per cent from the R2,9 billion spent in 2018. This year’s figures will need to be aggregated over the month of November as many retailers introduce month-long specials both online and in-store to guard against coronavirus infections.
“After the year we have had, it may be tempting to splurge on great deals, but it would be prudent to exercise caution during this month. While the squeeze on your wallet might push you to spend money on deals, keep in mind that for most there is a long gap between the December and January paydays. Ensure that you have a good reserve fund in place, before considering the big spend,” warned Susan Steward of Budget Insurance.
Budget Insurance offers the following tips to safely navigate Black Friday:
– Focus on what you need first: Create a list of things that you need to get or replace soon, and prioritise those. Things that you want, like luxuries, need to be second in line.
– Set up a budget: Plan what you can afford to avoid being tempted into spending more than you have. The last thing you want is to go into December with debt and start off the new year on a poor financial footing.
– Stay safe: Black Friday in-stores might not be as busy as previous years, but if you do take the risk of shopping in person, make sure you stay safe by wearing a mask, keeping a safe distance from others and using hand sanitizer.
– Shop online rather than in-store: If you can avoid going into stores, rather shop online and grab the same discounts from the comfort and safety of your own home.
– Research, research, research: Don’t get taken in by the hype and don’t fall into the trap of believing that Black Friday itself is the only time to find a good deal. Do your research and compare where necessary to make sure you really are getting the best price. You can use sites such as pricecheck.co.za to do this.
– Set up online accounts in advance: Go to the sites of retailers you are likely to buy from and set up your online account in advance. This will include filling in your details, setting up your preferred delivery address and receiving a login and password. Doing this ahead of time means you will be able to buy quickly when deals go live.
– Be prepared to take a step back: Avoid getting swept up in grabbing every bargain you can get your hands on. If you’re feeling unsure about a purchase, take a moment to step away from the store or computer screen to think about whether you are making a wise buying decision.
– Use those loyalty rewards: You may have some points, discounts or cash-back offers due to you. Make sure to use these to your advantage.
– Check return policies: Understand the return policies and fees, and make sure you get a receipt.
