Black Friday and Small Business Saturday: Deal or No Deal?

While Black Friday can be tons of fun for those of us that love a great deal, the pressure that it puts on small business owners to run a deep discount during already hard times can be stressful. To help shed some light on whether you should run a Black Friday or Small Business Saturday deal (or not), let’s go through the pros and cons – as well as a few thought-provoking questions. 

Before I jump into the topic, let me first say there is nothing in the rulebook that says you have to offer a sale. So, if you’re just not feeling it, that is A-OK. Don’t be hard on yourself, or feel pressured by society to do one. 

Is a sale in the best interest of your business?

The first question to ask yourself is fundamental: Is it in the best interest of your business to run a sale? Let’s talk through each pro and con so you can decide. 

Pro: Large sum of money upfront! 

Having a padded bank account is a good feeling. You can use that large sum of money to pay off expenses, or reinvest in your business for growth. 

Pro: New clients

A deep discount can attract new clients that have been hesitant to pay full price. The trick is to wow them with your experience, so they understand the true value of what they received. 

Con: If they pay now – but delivery comes later – you can run into issues. 

If you are not good at money management, watch out. If you have deliverables at a later date, you can find yourself in a money jam quickly. Solution: Set aside 25% of your sales to pay for the deliverables later.  

Con: Time Issues

Again, the pay-now-provide-service-later model can cause scheduling issues later. Solution: Make the sale exclusive, by only selling a specific number of your offer. 

Con: You can cannibalize future revenue.

By providing your service on a deep discount, your clients who were going to pay full price later now no longer will.

Pro: “Money spent is money gone.” and “The second dollar is easier than the first.”

If a client buys a service, they will be primed for upsells later. This will allow you to make more money at the time of the service, to offset – or even exceed – the discount you offered.

Con: People wait for the sale. 

Once people know you do a sale each year, they will hold off and wait for it. For some businesses, sales are their business model. Clients are trained to watch and buy during sale times. Solution: Make your offering unique. Make your offering something that they can’t normally buy from you. 

Every business owner’s life situation is different. So thinking about the pros and cons of the sale in your particular circumstances is essential. 

Clarity through questioning 

Asking yourself a few key questions can also help illuminate if your business should participate in deep discount sale days this holiday season. 

Do you have time? Time is a scarce resource for everyone, and a holiday sale requires planning and marketing. How much time will that take? Is it something you can do easily and quickly?

Will the sale bring in new clients? The number one reason to offer a sale is to convert the leads who have been pondering using your service. By bringing them in on a sale, you could create a lifelong client. How many warm leads do you think you have? 

Do you have the time to service Black Friday buys? The last thing you want to do is get a bad reputation because you didn’t have time to fulfill the service. If you are already a busy business owner with no time in your day, you might want to opt out of participating. 

What’s your offer?

As I stated above, having a unique offer is best. This will keep you from cannibalizing 

future revenue and attracting sale-dependent followers. However, creating a unique offering can be difficult. So let’s take a moment to brainstorm through it.

If you are selling to your existing client base, can you offer duplicates of something you already sold them?

Examples:

• Designers: You already sold them a website. Can you sell them a landing or mini-site page? Or, sell a bundle of social media posts. You have all the assets, and are familiar with the brand, so this is an easy, process-oriented task to complete. 

• Wedding Photographers: Can you sell a duplicate copy (or copies) of the wedding album for parents’ Christmas gifts?

• Paper and Invitation Consultants: Can you deliver personalized thank you cards in the same theme of the wedding invitations?

By setting boundaries on your Black Friday deal, you will be creating a process-oriented sale, which will allow you to sell more – and make more – because you are cutting down on production costs. 

Gift cards are always a popular Black Friday trend. However, to avoid cannibalizing future sales, market it as “buy a gift for a friend or family member.” By planting the seed to buy for others, you are more likely to gather new clients, which you may be able to upsell later, since they have no money invested. 

Power in numbers. Gather your business buddies which have the same ideal client as you and offer a unique bundle. This is a great idea for educators. Everyone can add one piece of valuable content to the bundle. Then everyone markets it, and everyone profits. 

Scrap the discount and go the added incentive route. What if you remove the discount? Whhhaaaaat?!… Black Friday is about deep discounts! But it doesn’t have to be. If you are wanting to fill your 2022 calendar, offer a special incentive if they book within a specific period with a deposit or full purchase. 

Examples:

• Family Photographers: 50 holiday cards with your 2022 booking.

• Wedding Industry: Extra hour or two added to their package.

• Designers: 100 business cards or social media deliverables.

You might have to get creative, but there are all sorts of fun and desirable incentives that will convert warm leads. The trick is to make sure you are not giving away too much. Just enough to make the buyer feel like they are getting a deal. Because, let’s be honest – everyone loves a good deal! 

It’s your decision 

At the end of the day, it’s your decision whether or not to offer a Black Friday or Small Business Saturday deal. Evaluate your business, cash flow, time, and desire before making a decision. And, if you decide to do one, be smart about it. Think about upsells, boundaries, and incentives. These deals are created to make you money, not to put you in a bind later.