Deciphering Black Friday: Is it really for Service-Based Businesses

Deciphering Black Friday: Is it really for Service-Based Businesses
Nov 8, 2023
Over the last few weeks on what feels like a daily occurrence I keep getting marketeers in my emails and messenger, telling me that they can really boost my businesses sales by selling my services in a special promotion on Black Friday.  So, this got me thinking, is Black Friday predominantly for retail, product-based businesses or is there any evidence that this also works for service-based businesses like my coaching practice. I decided to find out. 

Firstly, I thought I would have to get a better understanding of where all this hype around black Friday came from. 

Black Friday has become a household name known for massive sales, long queues, and frantic shopping. While it is primarily associated with retail stores, the impact of this shopping extravaganza extends to businesses of all sizes but does this also include service-based enterprises?

 In this blog, we will delve into the history, pros, and cons of Black Friday sales, with a specific focus on small to medium-sized businesses in the service industry. By examining statistics and exploring the benefits and drawbacks, we aim to give business owners a greater understanding of whether participating in Black Friday can be beneficial. 

The Origins of Black Friday: The term "Black Friday" originated in the United States in the 1960s, referring to the day after Thanksgiving when retailers experienced a surge in sales, pushing their financial records into the black. This is only one such explanation of how the term Black Friday was coined, but it will do for the purposes of this blog.  
Over the years, Black Friday has evolved into a global phenomenon, with businesses across various industries capitalising on the opportunity to boost their revenue. 

The Pros of Black Friday for Service-Based Businesses:  

 Increased Brand Visibility: Black Friday has become a widely recognised event, and participating businesses can leverage this familiarity to enhance their brand visibility. By offering exclusive deals and promotions, service-based businesses can attract new customers who may not have been aware of their offerings before.

Revenue Boost: Black Friday presents an opportunity for service-based businesses to generate a significant influx of revenue in a short span of time. Offering limited-time discounts or value-added services can incentivise customers to make a purchase, leading to an immediate boost in sales and overall revenue.

 Customer Acquisition and Retention: Black Friday can serve as a catalyst for customer acquisition and retention. By providing exceptional customer service during this period, service-based businesses can leave a lasting positive impression on customers, potentially turning them into loyal customers. For those in sectors like my own not necessarily returning customers but also those that verbally promote your brand going forward.  

Competitive Advantage: Participating in Black Friday can give small to medium-sized service-based businesses a competitive edge over larger counterparts. By offering personalised services, tailored promotions, and a more intimate customer experience, these businesses can differentiate themselves and attract customers seeking a more personal touch. 

The Cons of Black Friday for Service-Based Businesses:  

Discount Dependency: One of the potential downsides of Black Friday for service-based businesses is the risk of becoming overly reliant on discounts. While discounts can drive sales in the short term, businesses may find it challenging to maintain profitability if customers become accustomed to discounted prices and are unwilling to pay full price outside of the holiday season. Clarity around this needs to be clear at the time that this is only for this period and your prices will rise as soon as it is over. Or promote it as a one-off only. 

Service Overload: Black Friday can bring an overwhelming surge of customers, putting a strain on service-based businesses. Meeting the increased demand for services while maintaining quality and customer satisfaction can be a significant challenge, potentially leading to a decline in service standards. Therefore, make sure that you know your capacity of new business you can take on at that time and stick to it. 

Brand Dilution: The intense competition during Black Friday can lead to a dilution of a service-based business's brand. Discount-driven marketing strategies may attract customers seeking bargains rather than appreciating the full value of the services provided. This dilution can hinder your ability to maintain premium pricing and position the business as a high-quality service provider. 

Some statistics around Black Friday:

According to recent studies, Black Friday generated a record-breaking $9 billion in online sales in the US alone in 2022, a substantial increase compared to previous years. However, it is important to note that while the retail sector predominantly benefits from Black Friday, service-based businesses have also witnessed positive outcomes. In a survey 2022 survey by the National Federation of Independent Business found that 25% of small businesses offered Black Friday deals, and of those businesses, 54% reported seeing an increase in sales. These statistics indicate the potential benefits for service-based businesses willing to participate in this shopping extravaganza, so this could benefit more UK based businesses too. 

Conclusion: Black Friday can present both opportunities and challenges for small to medium-sized service-based businesses. While the potential for increased revenue, customer acquisition, and brand visibility is enticing, it is essential for business owners to carefully evaluate the pros and cons before diving into the frenzy. 

 By understanding the history, weighing the benefits and drawbacks, and analysing relevant statistics, speaking to those in your industry who have participated in Black Friday sales in the last few years, service-based businesses can make an informed decision about their participation in Black Friday.  

Remember, every business is unique, and tailoring strategies that fit your specific customer base, the number of extra clients you can take on and setting appropriate goals is crucial for it to be a success for your business. 


So, business owners, as you scroll through your social media feeds, don't overlook the potential of Black Friday. With careful planning and consideration, this annual event could be the catalyst that propels your service-based business to new heights. 

Now after finishing this blog, it has made me think am I too late to get involved in the Black Friday sales this year, maybe not, and I think I will try it out. 

Tony Gordon      
Mindset Coach   
       
https://www.changingyourmindltd.com     
tonygordon@changingyourmindltd.com      
www.linkedin.com/in/ 

 

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I am a certified wellbeing practitioner and coach, helping my clients achieve their personal and professional goals. The essence of my work is to facilitate self-growth by helping you identify the core challenges and obstacles in your life, so that you can overcome them with confidence. I specialise in creating personalised plans and providing tools to guide you forward to achieve your desired goals.

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