Black Friday has become one of the biggest shopping events in the world. From electronics and appliances to fashion and online subscriptions, almost every type of product goes on sale. Consumers see massive price drops, bundle deals, flash sales, and special offers that seem too good to ignore. But why exactly do companies offer so many discounts during Black Friday? What makes this single day (and now week-long event) a perfect time for retailers to slash prices?
This article explains the psychology, economics, business strategies, and industry trends that drive the huge amount of customer discounts during Black Friday. Meanwhile, if you want to try different Pusoy rules, check out GameZone PH today!
1. Black Friday Helps Retailers Clear Out Old Inventory
One of the biggest reasons for Black Friday discounts is inventory management. Retailers need to clear space for new models, holiday arrivals, and upcoming seasonal products.
Why this matters:
- New product lines usually release in November–January.
- Old inventory becomes less profitable the longer it remains in storage.
- Holding stock costs money: warehousing, staffing, transportation, and depreciation.
Black Friday becomes the perfect time for companies to move older models quickly by offering irresistible discounts.
This applies heavily to:
- Electronics (TVs, phones, laptops)
- Appliances
- Fashion and apparel
- Home decor
- Toys
2. It Starts the Holiday Shopping Season
Black Friday marks the unofficial beginning of the holiday shopping rush. Retailers know consumers are preparing Christmas lists, so they use heavy discounts to motivate early spending.
Why retailers love this timing:
- Early sales predict holiday revenue performance.
- The earlier customers start buying, the more they usually spend overall.
- Shopping momentum creates higher sales in December.
Black Friday acts as the spark that pushes people into “gift-buying mode,” giving businesses a strong advantage for the rest of the season.
3. Black Friday Creates High Competition Among Retailers
Retail competition is at its peak during November. Every brand wants the biggest share of customer spending before the holidays. Because of this, companies lower prices aggressively to attract buyers.
Competitive factors include:
- Online vs. in-store competition
- Big brands vs. small businesses
- Local stores vs. international e-commerce platforms
If one retailer offers a huge discount on a popular item, competitors must respond with an equal or better offer to avoid losing customers.
This leads to:
- Flash sales
- Price matching
- Doorbuster deals
- Buy-one-get-one promotions
The result is a massive wave of discounts across all industries.
4. Black Friday Drives Massive Traffic and Brand Visibility
High traffic means more opportunities for brands to get noticed. Even if profit margins are low on discounted items, companies gain long-term value through increased visibility.
Retailers benefit from:
- Website visits
- App downloads
- Email sign-ups
- Social media engagement
- Customer retargeting opportunities
Even if a retailer breaks even on a Black Friday deal, gaining a new customer who returns later at full price is highly valuable.
5. Customers Expect Discounts, So Companies Must Deliver
Black Friday has built a strong consumer expectation over the years. People now wait for this period to buy big-ticket items, and brands adjust their pricing strategies accordingly.
Consumers expect discounts on:
- Electronics
- Gadgets
- Home appliances
- Clothing
- Travel packages
- Subscriptions
If a brand does not participate in Black Friday promotions, it risks:
- Losing sales
- Damaging brand image
- Falling behind competitors
To maintain customer trust and stay relevant, businesses must offer eye-catching deals.
6. Psychological Marketing Techniques Encourage Spending
Black Friday discounts are deeply connected to human psychology. Retailers understand how people react to limited-time offers and use these strategies to boost sales naturally.
Scarcity
“Limited stock,” “last chance,” and “only today” triggers urgency.
Fear of Missing Out (FOMO)
People are more likely to buy if they think the deal will never come again.
Anchoring
Retailers display the original price next to the sale price to make the discount feel bigger.
Loss Aversion
Humans fear losing a good deal more than they value gaining a new product.
These psychological elements, combined with real price reductions, create a strong emotional push to buy.
7. Black Friday Helps Retailers Boost Year-End Revenue
For many businesses, quarter 4 (October to December) is the most important period of the year. Black Friday plays a major role in helping them hit their financial targets.
Companies use Black Friday to:
- Increase revenue
- Reduce remaining yearly inventory
- Improve cash flow
- Strengthen financial reports for investors
The higher the sales during this period, the stronger the company appears going into the new year.
8. Online Shopping Intensifies Discount Culture
E-commerce platforms such as Amazon, Lazada, Shopee, Walmart, and others have transformed Black Friday into a digital shopping festival that lasts days or even weeks.
Online platforms encourage discounts because:
- Digital stores aren’t limited by physical shelf space.
- They can rapidly adjust prices based on demand.
- They use algorithms to optimize flash sales.
- Delivery services allow customers worldwide to join the event.
The convenience of online shopping also increases customer participation, pushing retailers to offer even better deals.
9. Brands Use Black Friday to Sell New Products Too
While many assume Black Friday is only for clearing old inventory, many brands also offer discounts on newly released items.
Why?
Because strong Black Friday sales help establish popularity early, especially for:
- New gadgets
- New clothing lines
- New accessories
- New seasonal launches
It boosts brand momentum and improves product rankings online.
10. Retailers Use Loss-Leader Pricing to Attract Customers
A loss leader is a product sold at or below cost to get customers through the door. Companies offer massive discounts on popular items so customers will also buy additional items at full price.
Example:
A store sells a discounted smartphone but earns profit from phone cases, chargers, accessories, and warranties.
This strategy greatly increases total revenue.
Final Thoughts
There are so many customer discounts during Black Friday because retailers strategically use the event to increase sales, clear inventory, outperform competitors, attract new customers, and prepare for the holiday season. The combination of consumer psychology, economic timing, and competition creates an environment where deep discounts benefit both businesses and shoppers.
Black Friday has evolved far beyond a one-day sale. Today, it is a global shopping tradition shaped by marketing, economics, and customer behavior—offering buyers some of the best deals of the year.
