5 Pricing Mistakes to Avoid this Black Friday

5 Pricing Mistakes to Avoid this Black Friday

Introduction

Black Friday is this Friday!!! The Day after Thanksgiving and one of the biggest shopping days of the year. It's the day businesses slash their prices and to either lure customers, clear their stock or boost their sales and pretty much starts the holiday season.

And of course, we have the customers all ready and waiting, scouting around for the best deals on everything from electronics to clothing. Of course as a business person, especially as a creative entrepreneur, you want to attract as many of those deal-seeking customers as possible. 

Giving discounts, in the right way, can help you boost your sales. However, the key thing about giving discounts is for you to gain or retain customers without your business suffering. In fact, discounts can be factored into your pricing strategy. That way you can decide to use it or not.

One tip I always give my clients is that customers must always know they are getting a discount even if they are getting the product for free. Your receipt or invoice must always show the original amount and then the discount you have given them so you don't devalue your work.

So yes offering Black Friday deals can be great! However, if you don't price your Black Friday deals strategically, you could end up losing money instead of bringing in profits.  So in trying to gain customers or hit your sales targets, please try and avoid these 5 discounted pricing mistakes.

black friday sale

Mistake #1: Copying everyone else. 

When setting any prices, it’s natural to scope out what similar artists and crafters are charging for comparable pieces. However, blindly matching competitors’ prices will most likely backfire.

Do what works for you and not what everyone else is doing. You don't know their costs so you can't offer the same discounts or prices.

Consider factors like your unique materials, labor time, and brand reputation. Price below competitors if you’re less established or use cheaper materials. Price above if your workmanship is exceptional. Let your prices reflect the full value of your work.

Mistake #2. Making your discounts too steep. 

Come Black Friday, some artists offer excessively deep discounts in hopes of gaining an edge. But drastic markdowns can devalue your work and brand. Find the sweet spot between appealing deals and reasonable pay for your efforts.

Consider offering small batches of items or product bundles at special savings instead of slashing prices sitewide. Limiting availability creates excitement around your deals.

Furthermore, there's no need to give a 50% or 70% discount. Customers will always appreciate a reduction even if it's 10% or 25%. 

black friday sales

Mistake #3. Lowering your prices too early.

Eager retailers often start marking down prices weeks ahead of Black Friday, hoping to build early momentum. However, this can backfire.

Don't offer the discounts too early. Better to 'wet their beaks' in anticipation of the huge discount and make it for a short period.  Customers learn to wait for the deepest discounts offered on Black Friday itself. If you slash prices too soon, you lose the ability to promote even bigger savings later. 

So hold off on reducing prices until the week of Black Friday to retain the novelty of your best deals. Offer modest taste-of-the-sale discounts before then to get customers engaged.

Mistake #4. Discounting too much stock. 

Another common error is discounting too much of your inventory for Black Friday. It's strategically smarter to deeply discount a few spotlight items that bring in shoppers, while maintaining regular pricing on the rest.

If everything goes on sale, you lose too much profit across the board. Select your loss leaders wisely based on stock levels, profit margins, and customer demand. Place limits on the most popular doorbuster deals to minimize losses. Not everything has to be on sale. Choose the ones that make sense to you.

5. Making sales too complicated.

Finally, don't hide your best Black Friday prices behind overly complicated requirements. Avoid tacking odd caveats onto your Black Friday deals like requiring shoppers to spend a certain amount first or jump through hoops for rebates. This frustrates customers and deters purchases.

Keep deals clear, simple and upfront to avoid turning off shoppers. For special savings above regular deals, consider offering an exclusive discount code sent to your newsletter subscribers instead of complicated requirements.

Offer your headline prices upfront, clearly communicated. Consider limiting the availability of your doorbuster deals to build urgency instead of attaching cumbersome conditions. Make it easy for customers to get the bargains you promote to maximize sales. Clear and simple is always best.

best price

Of course, there is always Built2Bill, my Pricing Calculator which will help you know how much discounts you can give on each product without making a loss. Once the figure in the profit area goes red, it means the discount is too high. Any red figure is a loss.

All done for you automatically. So get it now and start computing your Black Friday and New Year prices ahead of time!  Think of it as your very own client retention partner! 

And the best part is... you also get it at a discount!  So go ahead and get it here:

Pricing Template for Creatives

And if you're already using it, let me know how it's going. 

Conclusion

With careful planning, Black Friday can be very fruitful for selling handmade and handcrafted goods. Avoid devaluing your work through overly generous site-wide discounts. Be strategic with pricing, product selection, availability and promotional messaging. Take advantage of the high customer spending expected on Black Friday while maintaining the perceived worth of your artistry.


Hi there! My name is Temi.


I am passionate about helping creative entrepreneurs reach their true potential and live their rich lives through their talent and skill.


It's time to turn your passion from mere love and skill into a viable and profitable business.  


Temi Williams Business Coach & Pricing Expert for Creatives

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