Over the past few years, Black Friday has become a prominent shopping tradition in South Africa. Many people prefer to do their December and New Year’s shopping during the Black Friday and Cyber Monday specials and as a result businesses nowadays spend a lot of time preparing, advertising, and getting themselves ready in anticipation for what has evolved into a popular weekend not only in South Africa but across the world. Furthermore, some businesses even go as far as starting their sales in the weeks leading up to Black Friday, by now calling it Black November.
In fact, according to research data, the total spend on Black Friday in South Africa in 2019 was a staggering R6 Billion, which translates to a 106% increase on 2018’s total spend which stood at R2.9 Billion. Moreover, 76% of local consumers took part in the spreading spree, representing a 12% increase from 2018.[1]
Black Friday is big amongst all types of consumers whether it be individuals or businesses, as they can use these specials to start and plan for the New Year in terms of new office equipment that might be required or replaced, stationary they may need, and goods, in general, to get ready for 2021. The timing of Black Friday is the perfect chance to get ahead. So why wait until the turn of the year? Rather take advantage of the discounts and get yourself sorted for the New Year and preserve your cash flow going into 2021. But while all these specials are enticing and potentially beneficial, customers need to be wary about their budgets.
It is important to note that before partaking in any Black Friday activities, businesses and consumers need to have adequate planning put into place. Strategic planning ensures they will have a solid game plan going into the sale. Retailers and suppliers always have a plan ahead of Black Friday and it is crucial that you do too. Your business needs to plan what exactly they require for the New Year and make purchases accordingly that are necessary and that they do not need to use monthly cash flow and budget.
Furthermore, as part of the planning process, consumers must also ensure they have done their homework, as this is one-way retailers can catch buyers out. What does this mean? You should track the price of goods and products throughout the year. What can happen during the November specials is that companies will hike up the price of their products in the weeks leading up to Black Friday and once the specials begin, they discount their goods based on the inflated prices. Customers, therefore, believe they are getting a good deal but in actual fact, the deal is not as fantastic as it appears to be. So, doing research is critical if you are to get the most benefits out of Black Friday.
Finally, going back to the budget, it is imperative that you know what your budget is and stick to it. The last thing you want is to make unnecessary purchases on your credit card and then find out your card has been maxed out or even worse would be to increase your credit limit ahead of Black Friday as that could result in huge amounts of debt. And everyone knows when your debt is unplanned it becomes difficult to pay off. So before deciding whether or not to participate in the Black Friday and Cyber Monday offerings, the rule is simple. Don’t spend what you don’t have.
Now, it is easy for small businesses to plan, and it is easy for small businesses to do their homework but how can SMEs benefit from Black Friday? How can SMEs bolster their profits? How can SMEs preserve their cash flows? How can SMEs get the best out of Black Friday?
With Payabill, we enable SMEs to increase their buying power by letting them create their own payment terms with their trading partners and suppliers. Through trade financing, you can also take advantage of Black Friday by applying for short-term trade finance. Trade finance can be used to stock up on inventory and can be seen as a cheaper option leading up to Black Friday and Cyber Monday, especially if that SME is expecting a big return on sales. We at Payabill are accredited with leading suppliers and we can assist in helping you find the best deals and to help you get more for less this Black Friday. This will enable you to purchase stock, boost profits while at the same time preserving cash.
In these crazy times in which we are living it is important to get your business back on track and with the help of Payabill this Black Friday we will make sure you are well taken care of.
