Black Friday in South Africa and all over the world is one of the most highly anticipated times of the year that countless people never cease to miss. Black Friday also traditionally marks the start of the festive season in South Africa. Many stores offer highly promoted sales at discounted prices and often open early, sometimes as early as midnight.
With yet another interest rate hike expected the day before Black Friday, Farzana Botha, Segment Solutions Manager at Sanlam Savings warns that these deals might not be all they’re cut out to be.
Here are five tips you need to know before you splurge on the biggest shopping day of the year according to Farzana Botha: Farzana Botha
1. Determine wants vs. needs
It is important to be able to distinguish between something you need or want. Farzana also emphasised that delaying a purchase until you are confident that you can afford it after you have thought it through and it is within your budget. “To do this, you need to know if an item is truly discounted or if the base price was inflated before the discount was applied. This process requires some homework.
Farzana further explained that “if you want to buy a new TV, monitor the average price, and compare prices online and in-store so that you have a benchmark. That way, when it goes on sale, you know just how much you are saving – if anything.”
You should also budget for these items to avoid overspending.
According to Farzana it is important to spoil yourself every now and then as it “allows you to feel a sense of accomplishment and freedom.” However she urges individuals to create a budget plan in order to avoid bad debts which they would end up regretting later.
“But it’s still important to plan and save for these purchases so that you can enjoy them without guilt or the long-term consequence of paying off the interest incurred if you bought the item on credit. True freedom is being debt-free.”
2. Be cautious of interest rates
Farzana warns individuals on using credit or loan.
“Depending on the interest rate, this could end up being double the price meaning you’re not actually getting a good deal.”
“In comparison, if I choose to layby an item that isn’t on sale, I will pay interest-free instalments and have the item once that amount is paid. This is better than buying the item on sale using a credit card or loan,” she says.
3. Don’t be duped
Many retailers try to get rid of unwanted stock, pushing brands that have not performed well during the year. When it comes to tech, crazy deals might be an indication that new, improved models are about to be released. Once again, doing thorough research will help to ensure you’re investing in high-quality items that will last you for more than one season.
It is super important to examine return policies as these can be quite different for Black Friday specials. And be sure to retain all receipts and proof of payments.
4. Choose when, and how, to shop
Many retailers hype up the idea that the best deals are found in-store, but there will be many major deals online too. This allows you to choose when and how you shop. Keep this in mind, as it’s likely to be one of the busiest Black Friday seasons ever.
Also making sure to try out online shopping which gives you the opportunity to save items in your wishlist or cart before checking out. This way you can think carefully about each purchase and compare prices with other retailers.
5. Avoid distraction tactics
Some retailers offer one or two truly exceptional deals to create the impression that all other deals are equally good. Known as the halo effect, this coaxes customers to buy more items. People should also be on the lookout for so-called ‘limited’ deals that are available during other sales throughout the year. This sense of scarcity is used to instil FOMO.
“Black Friday does offer some very good deals, but many of these could be found at other times of the year if you search and compare prices. Do your homework so you don’t fall prey to sale periods,” concludes Botha.
