How can stores slash prices so much on Black Friday?

Hook

Why and how can stores slash prices so much on Black Friday? Some deals look too good to be true. Here's how stores still make money, and what to watch out for.

Name

Black Friday is the day after Thanksgiving. One popular story says it's when stores went from red to black, meaning from losses to profit. The name actually came from Philadelphia police back in the nineteen fifties and sixties, describing the traffic and crowd chaos.

Leader

Many headline deals are loss leaders. A store sells a few hot items at a loss to get you through the door, hoping you'll buy other things at full price.

Basket

It often works. Once you're shopping, you grab cables, cases, snacks and gifts with much bigger profit margins.

Made

Some Black Friday products are made specially for the sale. They can look like a famous model, but use cheaper parts or have slightly different model numbers.

Anchor

Watch the original price too. Some stores compare against a list price that the item rarely sold for, making the discount look bigger than it really is.

Tips

Smart shoppers check price history, compare model numbers, and set a budget before the sale starts. Many deals also come back again on Cyber Monday.

Close

So stores win on Black Friday with loss leaders, extra purchases and special deal models, while careful shoppers can still find real bargains. ThatsWhyHow.