Black Friday - The Spirit of Giving and Defeat

As I am writing this, it is 4:18 PM. 12 hours ago, I was dressed and having coffee preparing to embark on a quest for bargains. I was looking mostly for gifts for Christmas and some little things for myself. I was hoping to acquire a 32" Westinghouse LED Slim 720p 60Hz HDTV. Westinghouse, a brand you may never have heard of, because it is much cheaper. The deal at Menards was $127. Unfortunately, my incompetence to remember the best deals overcame me. I tried to get it later but they were long gone. I was told by a friend later that when Menards opened, people went for that TV like maniacs. I could have been trampled. So that's a good thing, that I didn't get trampled. I got some gifts and stuff and I'm happy with what I bought. Buying presents for others always feels so rewarding.

I hope you all enjoyed your Black Fridays and didn't get trampled. I bet there will be a story on the news tomorrow of how some 19 year old Wal-Mart employee got ran over by crowds of middle-aged women. That is why I'm sometimes skeptical about whether or not it's a good idea to go Black Friday shopping, but then I think logically. "All the cases," I thought. "of people who are trampled to death compared to the happiness low prices could bring to me and others to whom I gift, would it still be a good idea to go Black Friday shopping?" YES! In my opinion, it's a really good thing. You save big, getting more presents for others and making relationships more powerful, and the companies make a profit. If you don't understand how the companies make a profit by lowering prices on Black Friday, allow me to enlighten you.

These companies get these items from manufacturers for a low price. Let's say a quartz amulet for $10 from the manufacturer. Quartz is generally quite common, so it's not difficult to make and sell to the stores, let's say Bob's Superstore Emporium. I don't know what an emporium is but it sounds cool. Back to the story. Bob Bobbington, the CEO of this company, buys 100 quartz amulets for a total of $1,000. Now, he knows that you should always buy low and sell high. So, Bob decides to sell the amulet for $30 at his emporium. Some locals come by and purchase this item. Bob has sold 20 amulets for a total of $600. But he still hasn't made a profit. He has to make $400 back just to have not made a horrible business decision. He also needs more money to pay for workers, land, etc...Black Friday comes along, and Bob, a business-savvy employer, knows that when cost goes down, demand goes up. Let me show you how. For Black Friday, he lowers the price of this amulet to $20. Wow! 33% Off! He then sells out all the inventory, 80 amulets that is at $20 for $1,600! Added to the price of the $600 made off the first 20 amulets, that makes $2,400 dollars. A $1,400 profit. He couldn't have sold those 80 amulets without lowering the price, and it helped him significantly by doing so on Black Friday.

I'm really getting into the Holiday Spirit now. Until next time!