As Black Friday approaches, businesses and shoppers alike prepare for one of the biggest sales days of the year. This shopping frenzy has become the unofficial start to holiday spending, but is it right for every business to offer discounts?

The psychology behind Black Friday reveals that many shoppers feel compelled by “fear of missing out” (FOMO), which drives impulsive purchases. Limited-time deals can also lead to a “scarcity mindset,” where customers feel that products are more valuable simply because they may soon be unavailable. Another psychological factor is the “bandwagon effect,” where seeing others shop convinces individuals they need to join in, too.

For small businesses, Black Friday can present challenges. Should they lower prices like larger retailers, or maintain value-based pricing? Every year, I advise my clients that for service-based or independent businesses, participating in Black Friday discounts might not be necessary. Customers come to these businesses for quality, not just price cuts.

However, if you want to participate without devaluing your brand, consider testing a new product with a one-time offer or offering a free trial as a holiday perk. Collaboration with another small business can be beneficial, as can supporting movements like Small Business Saturday to encourage local shopping.

Remember, Black Friday’s psychology can make people feel that discounts mean “worth buying now,” but that may not always align with the sustainable pricing practices of independent brands. Choose a strategy that aligns with your business ethos, and remember, it’s perfectly fine to let this day pass if it doesn’t fit your vision. This approach allows you to leverage the psychology of Black Friday while making decisions that reflect your business values. In short, when it comes to Black Friday, you do you.

If you’re keen to learn more about how I drive real results for you and your business through strategic thinking, operational excellence and intuitive insight, get in touch today.