It’s everywhere, it’s Black Friday! It seems every store, brand and product is participating in the madness. What’s more, many brands and retailers are having multiple days or even a whole week of discounts. Those discounts are everywhere but how real are the deals you’re encountering? We dove into the data!
Let’s look at some earphone deals you could get today. For example the Bose QuietComfort 35 II showed quite some price changes at three tracked stores in the last few weeks. At Coolblue there hasn’t been any promo price during the last months. We then see the price rise in preparation to the Black Friday week. Suddenly the regular and promo prices split with the regular price rising even further and the promo price dropping to previous levels. It’s striking that Krëfel is following the exact same strategy for this product as the graphs below are showing. A real Black Friday deal? Not exactly. You could have bought the same earphones at the same price in October, only now it’s called a Black Friday promotion.
A similar story in the television section for the Samsung 55” QLED. The deal you’re getting is actually a good one as the graph below shows. Still it’s remarkable that for a few weeks only the regular price is changing. But when Black Friday arrives, some retailers use the difference between regular price and promo price to emphasize the discount even more. Coolblue is using the same tactic for another television. The Sony deal seems huge due to the high suggested regular price but is actually not that much better than the weeks before Black Friday.
Fiddling with regular and promo price levels is not the only frequently used tactic to seduce shoppers. Specific wording suggesting a promotion or a good deal are equally important. We can see Bol.com is very fond of this strategy. For the same Samsung television they continuously seem to offer the lowest price. However, on Black Friday the price of the television slightly goes up while the words “High Discount” are added to the product page. A bad deal? Not really, but maybe not as good as you thought it was. An even stronger message is used for an Xbox One Controller to announce a €1 discount compared to a day earlier, when no promo text was shown: “Lowered price. Black Friday festival”. The discount is real, especially compared to a week before, but the wording is particular.
So, did you get a good deal today? Maybe you did, maybe you didn’t. One thing is certain, the retailers are making sure you think you did. Therefore it’s best to keep an eye on the products you’re planning to buy.
At Daltix we love combining big data capabilities with retail expertise. We selected some high value Black Friday products in consumer electronics and dove into our data to uncover some Black Friday mechanisms in all these price and promo fluctuations. We’re able to do this because we track online prices daily and enrich them with offline data whenever we see the occasional difference. To gain a good insight into the pricing dynamics we distinguish between regular price and promo price. We even take into account complex promo texts and convert them into promo prices to be as complete as possible.