For both customers and businesses, Black Friday is one of the shopping highlights of the year! Originating in the USA, the tradition has now been adopted globally and South Africans look forward to great savings every November.
Many businesses start planning their Black Friday sales and campaigns months in advance, to make the most of the event. With online sales on the rise since the pandemic, we can expect to see lots of online shopping taking place this Black Friday. While you are in your final stages of preparing your business for Black Friday, here are
some budget hacks to help.
Check Your Stock Levels
As there will be a surge in buying over Black Friday you need to ensure you have significant stock levels to meet the demand. Negotiate favourable payment terms with suppliers to make payment after you have sold the stock or consider extending credit facilities to cover the additional cash outlay. When increasing your stock make sure you understand your customer so you can ensure that you only increase the quantity of the goods that customers are most likely to buy. This will avoid unwanted inventory at the end.
Apply the right discounts
Studies have shown that for Black Friday, most customers are looking for at least a 20% discount on products. When planning your Black Friday sale, your budget will help you determine how much of a discount you can offer on your goods or services and still make a profit. Understanding your fixed and variable costs is vital in determining your break-even sales price. You want to stand out and encourage sales, but without losing money. The key is to find that sweet spot for your business!
Determine & Stick to Your Marketing Budget
Marketing is a key part of making customers aware of your Black Friday offering and driving them to make purchases. Your marketing efforts may start some weeks before the actual sale, so you’ll need to determine your marketing budget, and stick to it.
Planning ahead, and planning well, will help you get the word out there in time and within budget. Consider how much you can afford to spend, and tailor your campaigns accordingly. Thanks to social media, there are so many ways to spread the word without having to spend a fortune!
Focus Your Budget on One Goal or Event
There are so many ways to make an impact on Black Friday, but as a small business, but it would take a large budget to do all of them. As a small business, decide which goal is most important to your business and then select the tactics that will help you achieve this goal. This will help you devote your time and resources to one big event, rather than spreading yourself and your budget too thin. There’s a lot more chance for success this way!
Need some help getting ready?
Whether it is your first time navigating a Black Friday sale, or you are a seasoned professional, we’re here to help you understand your numbers and stick to your budget and make a financial success of this event. See more here: https://financestudio.co.za