Don’t let your Black Friday turn into Blue Monday
Make sure you pay first, then spend later
While South Africans spent more than R3.3bn during last year’s Black Friday, experts have warned that the current economical bind requires sober-minded spending.
Many South African consumers are gearing up for Black Friday this week, but this time around spending is likely to be stifled.
Households are battling with the rising cost of living worsened by the RussiaUkraine war, which has pushed up the price of grain, among other crucial resources.
Also, consumers are set for another fuel hike of up to R1/litre in December, which will squeeze many going into the festive season.
However, it is this week’s Black Friday that many consumers are looking forward to, but people have been cautioned to be realistic about their spending and deciding which bargains to go for.
According to Bankserv Africa, the total value of 2021 Black Friday transactions was R3.3bn – a 17% increase from 2020. The shopping volume went up 36.64% in the four days leading up to Black Friday, with transaction values volume going up to 30% from 2020 to 2021 and consumers spending R17m in just an hour on Black Friday itself.
Susan Steward, Budget Insurance spokesperson, said consumers needed to be levelheaded in their spending this time around.
“While South Africans are keen to take advantage of the numerous specials on offer, money is tight and every cent needs to work as hard as it can.
The good news is that by compiling prioritised lists, setting a budget, shopping around, comparing deals and taking advantage of the “Black November” trend, a nose for a bargain combined with savvy spending can see you getting what you need and saving lots of cash without breaking the bank.
Steward said while people were caught up in the Black Friday frenzy, they also needed to be cautious of their bills going into January.
“The key is to think about whether you can afford Black Friday shopping to begin with, and make sure that you first have all the essentials to start off the New Year on a good foot. Make sure that you’ve paid your bills, maybe even settled some debt, and that you have a good reserve fund in place for unforeseen circumstances, before considering the “big spend”.
“Then it’s all about making every penny you have left work as hard and smartly as it can,” Steward said.
Dr Farai Nyika, an academic at the Management College of Southern Africa (MANCOSA) department of economics, said buyers also needed to be careful of being duped during the Black Friday craze. He urged people to take a step back and question whether the items they want are truly discounted and are necessary.
“Many retailers sell an item for, say, R1,400 with a sign saying the price has been reduced by 70%, so the original price is R2,000.
“However, if the consumer were to track the price of the same item throughout the year, they would find that the original price of the item in June or July was R1,400.
“Statistics show that retailers often inflate the prices of products in the months leading up to Black Friday to give consumers a false sense of savings,” says Dr Nyika.
Although consumers are encouraged to scrutinise the supposed savings on some products, there are times where consumers are actually at an advantage. “Another tactic used by retailers is to offer real savings on some products to lure consumers into their stores, where they will hopefully spend money on items that are not discounted.
“However, while there are limited savings on expensive items (such as electronics), there are savings on clothing and groceries.
“In recent years, we have noticed that consumers spend a little more money on clothing and food on Black Friday because they cannot afford the items at the normal price.
“This is especially the case in townships, where stokvels spend a lot of money on Black Friday and the goods are distributed among stokvel members,” said Dr Nyika.
Here are some of the tips to consider this Black Friday week:
● 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 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.
● Shop online or on apps rather than in-store
If you can avoid going into stores, rather shop online or use apps, and grab the same discounts from the comfort (and safety) of your own home.
● Be first to know
Sign up for SMS notifications and e-mail newsletters with your favourite retailers and follow their social media pages so that you are alerted when new specials become available.
● 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.