Black Friday, the day after Thanksgiving, has become synonymous with huge discounts as consumers bundle up, camp around buildings waiting for an open door, or more often than not, shop online for the best deals. But one begs the question: how much do you really save while participating in these sales events? Knowing what the average Black Friday discount has been will better position you for the sale season—whether you're on the buy side of it, or the business end.
This article will examine Black Friday and Cyber Monday, two of the most important shopping events of the entire year, known to offer some of the best deals and discounts available throughout any given year. Whether you are looking to make purchases or to plan your own sales campaigns, the knowledge of common trends in discounting will bring you significantly closer to your target.
Why Black Friday and Cyber Monday Discounts Matter to Businesses
Black Friday is no longer just a U.S. tradition; it's actually a global shopping event. The opportunity for businesses, though, is the time to spike sales and clear out inventory before the full force of the holiday season begins. In 2017, for example, total holiday sales hit nearly $692 billion, with Black Friday contributing $7.9 billion in online sales alone. But why are these discounts so critical?
The answer is simple: competition. On Black Friday and Cyber Monday, shoppers expect to find a deal. If you aren't offering a competitive discount, you're most definitely losing some sales to those who are. However, with good planning, discounts don't just attract customers but also foster brand loyalty and repeat business.
Pro Tip: Discounty makes bulk, volume, and cart discount setup and management seamless so that your business remains competitive.
Check out our article on How Discounting Affects Profitability and Discount Pricing Strategies for Black Friday to learn more about how to optimize your discounting approach and stay ahead of competitors.
How Much Is a Black Friday Discount?
Typical Black Friday deals range between 20% and 50% off, depending on the product category and retailer in question. Store discounts tend to average about 20% the week of Thanksgiving, with an average peak of 37% on Black Friday. For online sales, an average of about 34% off could be expected in stores and online in this period.
Also, implementing tiered discounts can help offer structured savings to customers. Do you know what a tiered discount is?
Discount Ranges Based on Business Size
- Small Businesses: For small retailers, it's always in the range of 20-30%. It allows them to tempt customers without eating into the profit margins too much. Utilizing volume discounts can encourage larger purchases and boost sales. Do you know what volume discount is?
- Larger Retailers: The big boxes, like Amazon, can go up to 50% off or even higher on select items to provide deep discounts through scale.
Pro Tip: If you are a little creative with your discounts—for instance, tiered pricing ("Buy 2, Get 10% Off, Buy 3, Get 20% Off")—then you still can compete as a smaller store. The good news is that by using Discounty, you are able to set up tiered discounts in minutes without a headache.
How much is the Cyber Monday discount?
Cyber Monday is more of an online equivalent of Black Friday, with varying ranges in discounts. Offering automatic discounts during this period can streamline the shopping experience for customers. However, they focus more on tech and gadgets. While slightly smaller than Black Friday, the discounts on Cyber Monday are still impressive. You can expect to see discounts averaging from 20% to 40%, with the most significant savings on electronics and software.
Cyber Monday vs. Black Friday
The differences between Cyber Monday and Black Friday may be boiled down to the type of product on discount. Cyber Monday tends to favor electronics, while Black Friday offers discounts more broadly across categories like fashion, home goods, and toys.
Pro Tip: Businesses can make the most out of Cyber Monday sales by creating exclusive online-only discounts or crafting limited-time flash sales. Thanks to Discounty, all such time-sensitive campaigns are so easy to set up.
Understanding the difference between promotion and discount can help in planning effective marketing strategies.
Which Is Better: Fixed Amount or Percentage Discounts?
Whether you decide between offering a fixed dollar discount or a percentage discount can depend on your products and pricing strategy. Quick breakdown:
- Percentage Discounts: These work wonders when the items are of high value; even a small percentage discount here can make much difference. For instance, 10% off on a $1,000 laptop is more convincing than getting $10 off the same product.
- Fixed Amount Discounts: Ideally used on lower-priced products, where customers may not get as strong an impact from a percentage discount. This means getting $5 off a $25 product would feel more tangible than giving 5% off.
How to Decide
Consider your product margins: While products with high margins can afford to give deeper percentage cuts, fixed discounts may be a far better option for low-margin items.
Exploring types of promotion in marketing can provide insights into effective discount methods.
How to Smartly Structure Black Friday and Cyber Monday Discounts
If you really want to stand out on Black Friday and Cyber Monday, a simple discount won't cut it. Here are some ideas on how to structure your discounts:
- Tiered Discounts: Motivate bulk buying with multi-level discounts; for example, "Buy 2, Get 10% Off" or "Buy 5, Get 30% Off". Discounty makes it easy to manage those tiers and their application to specific product collections.
- Cart-Based Discounts: More significant discounts can be provided on cart value. For instance, "Spend $100, Get 15% Off." Drive incentive for more substantial purchases on your inventory with this kind of discount to hike AOV.
- Time-Sensitive Flash Sales: Create a sense of urgency with limited-time flash sales. For instance, offering customers a flash sale for just a few hours would trigger them to make hurried decisions.
Pro Tip: Employ multiple campaigns simultaneously.
How Small Businesses Can Make the Most of Black Friday Sales
While huge discounts are hardly possible for a small business, you still can cash in on Black Friday and Cyber Monday with smart strategies:
- Avoid Over-Discounting: Pay attention to your margins and avoid deep discounts on low-margin products.
- Bundle Products: Items should be sold in product bundles but at a slight discount. Bundles will help increase the volume of sales and provide value to the customer.
- Leverage existing customers: Avail early-bird discounting to your existing customers. This will benefit your business indirectly by rewarding repeated customers for building a better relationship.
Why Use Discounty for Your Black Friday Campaigns?
Managing multiple campaigns might seem daunting, but Discounty makes it simple. Here's how:
- Easy Customization: Want to create tiered discounts, cart-based discounts, or even multi-level discounts? You can do all of those and more with a few clicks using Discounty.
- Automatic Updates: New products are automatically included in your promotions without extra effort.
- 24/7 Support: Stuck somewhere? The team at Discounty is always present to make it happen—from technical assistance to customization requirements.
With Discounty, you can set up a campaign like "Spend $100, Get 10% Off" or create a seamless multi-tiered discount structure to give you flexibility in running your successful Black Friday campaign.
Final Words
Black Friday and Cyber Monday are huge opportunities for businesses to increase their sales. While the general discount can be from 20% up to 50%, the idea is to multiply that right discount by the size and product margins of your business. Fixed or percent, the framing of discounts must be done successfully.
Ready to take control of your holiday sales? Try Discounty today and watch your profits soar this Black Friday season!
