Who will win in a race of Black Friday
I am starting reading a good article prepared by which. I don’t need anything new at all; I came there only intending to see what people are facing on Black Friday. Guys from which did a great job to help you and me better navigate through endless deals. In addition to actually good work of sellers it impresses. I feel some excitement. ‘I want to check. Wow, Apple. I will not buy anything, but it’s interesting what they are running. All brands may have something extraordinary. Maybe I need something, and I forgot.’
I will open now all links with special deals, and I am sure I will feel the necessity to get new stuff. And of course, I will explain to myself that I wanted it for a while and price-quality is irresistible, and it’s available only now.
Let’s look at our mind.
This is what Daniel Kahneman (Nobel Memorial Prize in Economic Sciences, 2002) called ‘mistake’. Our brain has 2 systems.
- ‘fast’ (automatic, effortless) and
- ‘slow’ (deliberate, reasonable, effortful).
And an error occurs when we are confused. We make a decision using a ‘slow’ one, emotionally, impulsively, but we tell ourselves that we do it with ‘slow’ system.
What happens is that we already made a conclusion using our ‘gut feeling’, but then we bring arguments that support our decision. And we believe that it is logical and reasonable.
I know that some real deals during Black Friday are great. Even if you can completely switch our excitement and ‘emotional mind’ (what is too difficult when I see all announcements, posts, emails) some of them will bring a good value in your life.
Look, it’s as a game. You play, and they play. You want happiness. They want to serve you and to sell. They know about you; there use proved tools to make you feel and think in a particular way that will lead you to purchase. To be a strong player, it’s better to know about yourself and them. Let’s see together.
Magic with prices
We can start with companies. There are different technics used by them when they put prices. Here are 2 examples.
Not fully truth
Of course, when brands announce a particular discount, they are responsible for providing precisely this number. The question is this when you compare ‘Sales’ price you have the freedom to choose what you compare Black Friday price with. Often a company choose the manufacturer’s suggested retail price (MSRP) as an initial price.
‘Many items routinely sell below MSRP periodically throughout the year, which makes the advertised discount misleading, albeit technically accurate’, Courtney Jespersen NerdWallet.com’s consumer savings expert.
Prices are not static; they are not stones. They are alive like a squirrel. It can go up and down and up again. And it’s your choice what moment you choose to consider as a basis for your analysis.
To switch from ‘automative’ system: don’t rely on numbers of discount, focus on an end price and make a decision to buy if this particular price seems an optimal option and you need this product anyway.
Different prices for different people
It works for online shopping. Websites track you using cookies and know the history of your purchases (or no purchases). They know your habits, and they provide for you certain deals.
‘It can be a detriment to online consumers who don’t regularly bargain shop’, suggests Bobbi Rebell, a certified financial planner and host of the Financial Grownup podcast.
For example, if you a loyal customer and used to buy regularly with a full price, an e-commerce website will not be so generous with you.
To switch from ‘automative’ system: it’s again a game between you and a supplier. When you want to find what your favourite website provide for others, you can try another web-browser, smartphone instead of a laptop or an ‘incognito mode’. However, at the end of the day, be conscious of the value of the product for your life. Even if you find the same one cheaper, it doesn’t mean you should buy it.
Our unconscious behaviour
We looked at a couple of examples when companies were not transparent with you. You can find more cases in this list here, for example.
Now look a bit deeper.
Let’s assume that prices dropped down on 30 – 50%, does it actually mean that you should take your wallet immediately and bring new stuff home? And what is happening beyond the scene from a psychological perspective?
One of the exciting elements in this story is your ‘history’ and emotions associated with it.
Regrets are a big player. You have 2 types of regrets: that ‘you did something’ = ‘act of commission’ and that ‘you didn’t do something = ‘act of omission’.
Researches show that in the short term people feel upset because they took action with a bad outcome (find here). However, in the long-term, it’s more common for people to suffer emotionally because of not acting (insight here).
It’s about our perception and memory. If we remember the pleasurable experience, we want to repeat it. If we had a bad memory, we don’t want to have it next time (more here).
How will it work for you during Black Friday? A significant part of your decisions will be driven by memories from Black Friday the last time.
If you got something, it didn’t have any break, and you noticed afterwards that prices went up, you will remember your ‘win’. Even if you put your purchase on a shelf and didn’t use it, you may still feel excitement about Sale and will be more ‘vulnerable’ in front of endless offers.
If you made a purchase and then got problems with using it or your spouse critiqued your choice, you may be less perceptive to current offers. And if you accidentally found that prices were the same or even went below through the year, you will feel fooled and will tend to participate much less in Black Friday.
To switch from ‘automative’ system: as it’s common ‘cognitive illusion’ when past decisions determine our current choice, it’s important to be in a present moment. It became a popular idea in a field of managing stress and meditation. It’s also valuable for making decisions to be now and also think about tomorrow.
Bring attention to actual purchase.
- buying here
- buying similar stuff in another place
- saving for OR buying something different, what you wanted for a long time.
You are emotional and intellectual creatures. Sometimes you are confused by what part of your nature is a driver in decision making. It may lead to disappointments, arguments with yourself and others and feeling of unfulfillment.
This Black Friday, Cyber Monday and any sale pay more attention to your choices and spending. Try our simple steps to switch from ‘automative’ to ‘deliberate’ brain system to build a more meaningful life.
With the belief in all the best,
Contact me here